50 years ago it was considered quite optimistic to believe that we will have all knowledge of the world in our pockets. Even 20 years ago, the internet was considered only a fad, and no one really believed that with the help of robots companies operating from garages could change the way we look at business forever.
Now, the financial industry and the world is on the turmoil, as there are predictions how over third of all employees in finances might lose their job in the following years. The reason for it? Robots and software that are more effective than human employees.
Robots vs. Humans
Some financial industries, like binary options, are already taking advantage of robot technologies. They use robots to make trading easier and more reliable. But when it comes to more traditional and conservative aspects of financial industry, stockbrokers have every right to be scared.
The trend of robots in financial markets has already started, and after the first wave of lower-paid clerks, researchers and analysts also experienced domination of robots in financial industry. The next group of employees in the financial industry who could lose their positions because of new technologies are those who are dealing with clients. The main reason why this is happening is because the software provides more precise data than humans ever could, and robots are able to process information within minutes, even in cases when the human team would need weeks or hours.
All things considered, it is easy to see why financial companies are reducing the number of employees and giving the advantage to complete robot and software solutions. It is considered that even big companies such as Goldman-Sachs will cut the numbers for 50%.
New Trend In Financial Industry
An Oxford study published in 2013 explained how 47% of Americans are at high risk to lose their jobs due to automatization over the course of next 20 years. What is interesting is that technological innovations are putting not only factory workers in an unfavorable position but also a whole group of well-educated people who are in well-paid positions at the moment.
Stockbrokers and financial advisors are especially in danger, as it is considered that thanks to modern supercomputers, human brain simply isn’t competitive enough.
Robots Are Getting Better
Skeptics are saying how nothing can replace human touch, even when it comes to financial industry and they are, to a certain extent, right. There will always be people who prefer communication with other people, but it is hard to forget how technology is becoming more and more advanced each day.
There are already robots and software that are considered to be machine learning algorithms. This means that they are constantly adapting and changing, just like human beings, depending on their past experiences and market conditions. Financial robots and trading algorithms are no longer ‘one size fits all’ products, but customizable services.
They don’t even need a human developer to tell them what to do; they will figure that out anyway. This characteristic makes them a great addition to human knowledge, but it is only the question of time when robots will replace humans in financial markets for good.
Regulation Of Robot Advisors
One thing that could cause problems to robots in financial industries is regulation. At the moment, no country is concerned with this new trend, and unfortunately, as many times before, regulation could come too little too late.
Some financial experts even claim that is government bodies knew the full potential of robots in financial markets they would ban them immediately. Still, it seems that for now robots and software are here to stay without any doubts.
They are delivering accurate, precise and reliable information within few minutes and few mouse clicks without much room for mistakes that are so common with humans. Will they really be the future of the financial industry? Only the time can tell.