The implementation of new, innovative technology will define the future of finance and investment. These technologies have the power to disrupt, automate, and enhance the way we navigate the financial industry—changing the field for both investors and customers.
With over 10 years since the financial crisis of 2008, the sector has changed significantly. Self-proprietor, Nando Caporicci highlights the ways in which the industry has evolved and discusses the technological advancements currently shaping finance.
Cloud technology has already been implemented in our everyday lives, but it’s use is being integrated into finance. Cloud computing has taken over mainstream banking with many banks looking for the perfect blend of traditional IT with public and private clouds. Hybrid clouds give banks the flexibility and benefits of private and public clouds and provides enhanced security and compliance help.
According to the Financial Brand, 75 percent of bankers said their most successful cloud initiatives allowed them to expand into new areas, create new revenue streams and further the products and services they offer.
Management and Investment Apps
Technology is not only impacting the industry for professional investors, brokers and insiders—but also for mainstream consumers. Everyday Americans are getting a firsthand look into the world of investing and finance because mobile apps allow them to have the technology in the palm of their hands. From investing apps like Robin Hood, which makes stock trading as simple as finding a stock and pressing buy, to budgeting apps that allow users to connect their credit cards and track spending, apps have changed personal finance. In addition, stock trading apps also provide stock advice, live 24-hour help and investment articles to cut out the use of a broker.
A blockchain is a database shared across a network of computers. And, in the last few years, the emergence of blockchain technology has been synonymous with the rise of cryptocurrency. It was first introduced as the record-keeping ledger behind Bitcoin but has made its way into other areas of finance—storing transactions with easy access, tracking purchases and offering security in this process. And although it was originally developed for cryptocurrency, it continues to make its way into more traditional areas of finance.
Measure Credit Score—And What Could Affect It
Checking and understanding credit score has always seemed foreign. What affects your score? How often will it change? Will closing a credit card will cause it to go down? The questions that surround this area of finance are being answered by new technology and big data available to companies. With the expansion of the credit score algorithm, consumers are able to see their credit score shift more often and are able to see shifts by smaller purchasing decisions and behavioral patterns. However, according to Next Web, this data can and have positive and negative impacts. First, a positive effect is being able to have a more accurate assessment of your financial records. On the other hand, it can close people off from entire financial services because of their scores.
Nando Caporicci claims that it’s no surprise emerging technologies aren’t significantly impacting finance and investing. The only question is how much of an impact will these technologies have?