The vast majority of things are moving towards technological solutions. This is the natural progression of society, and it has made it inevitable for institutions to move towards technology.
Once the internet was reduced, it sent the already soaring tech industry into overdrive. Suddenly there was a technological solution for pretty much everything, and tech companies were creating gadgets that could accomplish a wide variety of tasks. Nowadays, things don’t serve a single purpose. Gone are the days where a phone was a phone and a TV was just a TV.
Now a phone is a computer, and TVs have internet access. Practically everything has become interconnected, and even the field of medicine and surgery is starting to incorporate and technology. However, there was one field that had remained safe from the influence from technology, and that was the field of finance.
Finance was always thought to be a field where human ingenuity and intelligence would come into play. The way finance worked was that people would have to guess where the market would go based on intuition. However, finance just like any other field involves a system and this system can be cracked by machines.
McKinsey’s Trading Prophecy Is a Wall Street Ruled by Machines
Global investment banks that successfully adopt automated trading and other measures can increase profit by 30 percent, the consulting firm said in a report released Wednesday. Smaller firms should take a more targeted approach, using technology to streamline operations and trim costs, according to the paper titled “Two Routes to Digital Success in Capital Markets.”
This means that there is a definite reason to move towards technology in the field of finance. However, a lot of experts are beginning to ponder at the effect that this is going to have on the world of finance. A lot of people who work in finance are not rich; their jobs are salaried and they need these salaries to survive. The people that would benefit from these automated systems are the people that are earning money in the first place.
It is also doubtful where financial institutions would be able to earn more money by using technological methods. Machines tend to blindly follow the data and they are unable to make decisions based on their own logic. Unless true artificial intelligence is achieved, it is highly unlikely that machines will be able to have the same kind of success as humans in the field of finance.
However, no matter what kind of logic people apply to the situation, the fact remains that companies are earning more monye by using technology at least in the short term. This means that technology is here to stay for now.