The Future of Finance: How It Will Look Like

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The future of finance will likely combine the financial professionals’ emotional experience with the correct technologies.

According to the US Department of Labor, financial analyst employment is expected to boost by 12% between 2014 and 2024. This statistic is way faster compared to other industries’ average. On the other hand, most of this employment is dependent on financing the world’s series of new developments.

Social and political concerns, changing regulations, and the latest developments all influence financial analysts as a professional. However, no matter what, it is undeniable that financial expertise is continuously becoming a high demand.

Finance in the Years to Come 

With the popular saying, “money makes the world go around,” will financial experts really make it happen? Here are some ideas about what the future of finance will look like alongside the help of these experts:

Smarter Personal Finance 

Like other industries, financial management’s core tenets have already evolved. It is noticeable that computers are getting smaller; they play new roles in people’s personal and professional lives.

Meanwhile, these devices, alongside their users, are connected because of the internet. This connection was unimaginable a few decades ago. As a result, fundamental changes occurred in the way businesses and people think about money.

With tech innovation, changes are noticeable in every corner of the finance world. Journalists and analysts have even referred to financial technology or fintech as a new business crop searching to resolve age-old business issues innovatively.

Most fintech businesses became entrenched in the investment, insurance, and banking sectors. One obvious fintech development was in the payment and banking industry. Most consumers currently forego traditional banking and switch to online banking.

Blockchain as New Approach to Business and Financial Management 

Another development brought by financial tech is the blockchain, which is considered a new business and financial management approach. It refers to the computer algorithms that allow information and payments to be exchanged securely.

Blockchain technology is expected to be used by more businesses when making secure data or cash transfers.

The occupation and study of finance have revolved around investment management for individuals or corporations. However, like other jobs, this complex task already involves automation. The so-called robo-advisors have become more famous in the financial world when it comes to a lower-cost alternative to managing investments.

Robo-advisors are known to make financial decisions that most people are concerned about by crunching data and using algorithms based on historical market performances.

It is like balancing the retirement fund between bonds and stocks.

Regulatory Changes 

Regarding the US finance industry’s government regulation, the executive order is one of the most talked-about developments. It was signed by former President Donald Trump, focusing on rolling back the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act’s key provisions.

One of Dodd-Frank’s first provisions for removal is a rule regarding the financial advisors overseeing the retirement investment accounts. With this rule, all financial advisors must prevent any potential interest conflicts and act in the best interests of their clients.

Cryptocurrency, Is It the Real Future of Finance?

Research shows that more and more Americans enthusiastically prepare for a digital financial future. Plus, a California bank has started using crypto as loan collateral.

According to Starkware, a software company, around 53% of Americans held that cryptos as the future of finance, which is specifically strong among younger generations.

Starkware President and Co-founder Eli Ben-Sasson stated that the study indicated “just how huge [crypto] will soon become.” 

“We see that young Americans, those who will soon shape the economy, are especially tuned in to crypto. It’s an important insight that they are investing in large numbers, and overwhelmingly convinced crypto will be the future,” he added.

The study also reveals a growing number of banks have started to explore the benefits and uses of cryptos. For example, Silvergate Bank, a California-based bank, has issued $205 million worth of loan with bitcoin as collateral. This loan was given to MicroStrategy’s subsidiary of business analytics company MacroStrategy. The proceeds are intended to be used to buy more digital currency and for general corporate operations.

Alan Lane, Silvergate CEO, said, “the loan was an exceptional example of how institutions can utilize their bitcoin to support and grow their business.”

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ChesWorkShop commits to presenting fair and reliable information on subjects including cryptocurrency, finance, trading, and stocks. However, we do not have the capacity to offer financial guidance, advocating instead for users to conduct their own diligent research.

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