In a world where 84% of stocks are owned by 10% of the population, the number of people benefiting from the rising stock market is small. However, as more aspects of the industry are automated, the future of finance is such that more people have the shot to invest. In a world where it’s easier to invest, there are more opportunities to build a career in finance than ever before, even with robotics taking up space.
Here are five reasons to be excited about the future of finance in a world where automation is a fact of life.
1. Power To The People
One of the ways that automation is changing finance is that more people are able to feel empowered about their investments. Instead of having to rely on traders and brokers, they can do the work on their own. Or rather, robots can do it for them.
Small traders and new investors find that they can hire automated trading tools to handle their trades for them. They won’t have as much of a need for traders to assist them. With automated trading tools, their trades can be made within the limits they set and controlled by algorithms.
This takes a lot of the fun out of trading for some people but in a world where nothing is certain, it adds a little bit of security important for some.
When you’re in the world of forex or cryptocurrency, there are a lot of issues to consider that could impact how much you make or lose. When investors are looking risk in the face, most of them will run and hide. With the help of automated trading tools, the whole world of trading is far less intimidating.
2. Smart Analysis At Your Fingertips
The future of finance means that you’ll have more information at your fingertips than you would have imagined before. With the help of automation, you get smart analysis with the push of a button.
Traders and investors can make smarter decisions that only the best-educated financiers would. When you’re tasked with handling major accounts, you might learn that you’re dealing with a risk-averse client. Appease those clients by using tools that make trading easier for people who hate risks.
Analysis of data takes time, research, and could require a huge staff. With the rise of automation, that research can be quickly condensed. The time that it once took to gather all kinds of information can be redirected somewhere else.
With improved networking and mobile device technology, more traders can see information and analysis while on the go. While you’re sleeping, trading tools are working their robot fingers to the bone.
You can see values increase and assess an entire market in a few seconds.
3. Improved Risk Assessment
One of the tools for avoiding risk is the history of a market. When you can look at what’s happened in the history of a market, you can see what factors have caused it to rise and fall in the past. With the help of automation, you can assess risks and output data to your clients before you meet with them to help impact their investments.
Improved risk assessment doesn’t mean fewer risks. There will still be room for user error for any trader who doesn’t know how to use tools correctly. However, in the world of trading, ignorance isn’t bliss.
Ignorance is misery.
Avoid misery by putting together action plans of how various scenarios play out. Instead of having to analyze an entire market, spending far too much on time and resources, risk can be assessed automatically. By playing out a few scenarios, you can tell clients what to look out for and what could cause problems in the future.
4. More Startups
With the rise of automated tools, there will be more small trading firms and startups getting into the world of finance. This is great for everyone, as competition fills the market with energy.
In the past, more competition meant more work. However, that looks different in a world where so much of the industry is automated. With automation at your side, you’ll have more information to make better decisions no matter the size of your firm.
There will be arbiters of information who sell their tools at a premium. The spending gap between large and small firms will still be what drives success or failure of companies. Startups will have more of a fighting chance than ever with all of the tools available.
More startups mean that we’ll see more experimentation. Innovation will thrive and available positions will be more exciting than ever.
5. The Rise of Crypto
Cryptocurrency was a shock to the system of finance in recent years. With the late 2017 spike in the value of most crypto, interest in the market spiked. However, with a lack of information, there’s no way to make a smart decision.
As automation increases, investment in crypto seems much more plausible. The crypto market is driven by user interest from people who never would have owned stocks before. While there is a small minority of people who own the majority of crypto, there are a lot of interested users.
When data can be automated, numbers are crunched faster and decisions are made confidently. As the industry sees more automation, crypto will continue to grow into a large market with lots of interest.
The Future of Finance Will Include More People
In a world where everything is automated, the future of finance won’t be left out of the revolution. In this world, more people have the opportunity to invest with more knowledge and power than ever before. With the help of automated tools, workers in the financial sector are more empowered too.
If you want to know what the best jobs for recent grads are in the financial sector, check out our latest guide.