Fintech: Trouble in Pantheon, Part 3: The Final Frontier

Share On Facebook
share on Linkedin

This is the final part of our series on Fintech. In the first two we have looked at what Fintech is and at a few big players, such as Orchard. In this article we will analyse what Fintech can mean for investors.

©

First of all, digital technology will alter not only the financial services industry but a wide range of ‘traditional’ professions, including law, medicine and teaching. These industries form the pillars of our society. For example, law firms that do not offer digital platforms for clients to choose services and compare pricing structures will struggle to compete with the customers born from the new generation of tech-savvy individuals. Also, teaching is no longer limited by physical barriers: websites such as Coursera make it possible for anyone that wants to put in the time and effort to learn virtually anything from data mining and AI programming to finance, economics and civil engineering. Therefore, the question of what Fintech might mean for investors can be answered clearly and simply: change.

The way you think about the business world will alter a lot – financial institutions will no longer be dominated by banks and the asset managers will continue to employ complex algorithms in their financial engineering processes. In the future we will see more people engaging in financial transactions via peer-to-peer platforms. Some analysts suggest that even the way companies raise funds can alter fundamentally with the raise of platforms such as Seedrs, an online platform that raises money for start-ups.

The digital technology will also alter the way people interact: Facebook and LinkedIn are only the beginning: encrypting messages, high-frequency trading algorithms and crowdsourcing are growing and affecting all aspects of business life from recruitment to accountancy.

I suggest you pay close attention to developments in the technological sector and not just to the new iPhone models but to new programing languages, algorithms and research papers that can provide you with insights into the future.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20201001 14:42:12