"A quiet change is happening in the financial industry at the moment. New technology is changing how markets work and how financial services are administered." (1)
Innovations in technology has propelled society to heights of only imaginable portions that are now reality. Impractical was once word of restriction in regards to progress, but imagination is the human characteristic that allows us to bridge the impossible. Imagination is the foundation of invention and innovation. Noise and men that use to clutter the floors of firms are now replaced by the hum of computers. In the piece, The Future is Bionic not Robo talks about the evolution in technology in the financial advisement market. "Technology presents a huge opportunity in this situation. It can give advisors more effective tools to give more efficient and better reasoned advice. The future of advice is one where the decisions of humans are augmented by technology, not replaced by them. In this sense, advice will be bionic, not exclusively robo." Technology is aiding financial advisors advice their client not just through numbers and figures, but creating a platform for clients and agents to talk and understand one another. Technology is no longer a crutch used for information, but now we can manipulate what we are given for desirable outcomes. It means smarter investments, better efficiency, and promotes a healthy market. In relationship to productivity, technology helps society take the leaps and bounds it needs to make for a brighter and better future.
Reference: 1. The Future is Bionic Not Robo
The article mentions that people are concerned that increasing technology will eventually wipe out the job of financial advisors because it will allow individuals to take more control over their investments. I can understand why people are concerned about this but like the article says, advisors are just going to need to help their clients understand what the combination of technology and their advice means for them. Adjustments are going to have to be made as technology advances. The article also mentions the positive impact that innovations in technology can have on the financial industry. I think that this can relate to the podcast that was posted. The podcast talked about how the world we live in now is very different from the world our grandparents lived in. The fact that we are better off than our grandparents were can be attributed to the growth in productivity over the years. Technology innovations have the ability to affect the growth in productivity and the standard of living.
ReplyDeleteOne model that's application that provides validity to your statement is the Solow model. As a model that illustrates capital accumulation, it refers to productivity, standard of living and many aspects of the economy. Technology as an aid to economic growth helps reduce something we don't have much of— time.
ReplyDeleteI think applying technology to aid advisors financial fields will be more efficient, the concerns towards jobs being replaced is understandable, but once the tech related services are more common people could get used to it and be less concerned,
ReplyDeleteI think that the technological advances in the financial financial industry are going to be a great. It will probably eventually lead to people losing there jobs but our world needs to keep evolving technologically.
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