Communicated Content – Technology can sometimes be disruptive, shaking up the status quo of how we do business and live our day to day lives. The financial industry is one of those industries that saw many changes, improvements, and evolving new trends.
This post will go through those trends, whether it be how cryptocurrency is making inroads or how AI is starting to become more and more prevalent in the world of finances. Here are the upcoming trends in the financial world.
Cryptocurrency is a strange place, right? It went from being barely accepted anywhere being worth hundreds of thousands of dollars,being accepted at more and more places, to now being at the point where countries and unions want to stop it altogether.
While there is still the chance that a mass shutdown of crypto’s could happen, more than likely there will be more regulations put in place. These regulations, in turn, will help the currency, as many businesses and sectors have said they don’t want to deal with or accept crypto’s partly due to not being regulated.
Many financial institutions are talking about accepting existing cryptocurrencies. They will create their own that clients will be able to use with them. As crypto grows in popularity despite efforts to shut it down, these advancements and changes are looking more and more likely.
AI in Finance
In the world of security, AI is being used more and more by financial institutions to track and stop fraud. Cybersecurity companies and financial institutions are working hand in hand to make banking and protecting your money as safe and as easy as possible.
The most exciting aspect is the fact that the AI is not only able to instantly spot anomalies, but instantly learns patterns and can spot when unusual or fraudulent activity is happening, and notify those in charge immediately.
There has also been a massive uptick in financial institutions and banks being hacked. This AI is being used to learn these hacks, fix bugs, and withstand the numerous cyber attacks that any bank or institution faces daily.
The one area that has been affected the most by the current pandemic is the world of insurance. Before, insurance was a very broad area that covered and didn’t cover basically the same thing for everyone.
Now, however, that has changed, insurance companies were forced to adjust what they offered, and give clients a more personal experience considering the numerous and different difficulties individuals have faced during this pandemic.
Many believe this will continue to happen, more personalized insurance going forward with clients paying for what they want and need and not spending money on what they don’t want. This saves clients money, and gets in more business for the insurance companies.
Changes in Trading
Stock trading has also seen massive changes in the past 18 months or so. Trading floors are no longer filled with traders, and more and more stock experts are working from home, with much more information available to them at any one time.
Also, we have the rise of casual traders. The Gamestop event showed that financial experts aren’t the only ones who can work the stock exchange, with more and more average Joe’s becoming overnight millionaires.
This is simply down to the fact that there are so many resources to learn about this kind of stuff. There is no need to rely on an expert when you can dabble in the stock market and learn yourself.
While trading with a lot of money without expert guidance is not advised, the stock market has definitely shifted from something only used by experts, to something everyone can be a part of, much like cryptocurrency.
Innovation was put to the test during the height of the pandemic. Financial institutions had to change how they do business overnight, and also adjust to the new needs that their clients had due to unemployment or needing insurance and the like.
It showed how quickly and efficiently these institutions could adjust and change how they operated, especially at the speed they did it. This shows that innovation is not only constantly needed, but also something that can be done at the drop of a hat.
Think of all the ways your home and work life has changed since the start of the pandemic, now imagine that on the scale of a bank or financial institutions. The changes were huge, but the speed and efficiency they were done have shown it can and should be done when needed.
The pandemic has forced a lot of change and adaptation in the financial sector, and trends that we couldn’t see coming a couple of years ago are now in full force. The pandemic forced a lot of these changes, but they have turned into positives.
These trends will end up being for the good, and we have to wait and see which new major changes will be coming to the financial sector in the coming months and years.