We seem to be getting scared by robots. Maybe not robots becoming our family members entirely, but at least fearing at the back of our mind that robots might take our jobs. Robots could probably do my work faster and better this is a real fear for those in highly ‘robotic jobs. It’s predicted that up to 40% of jobs in the US could be performed artificially within the next two decades. The website ‘www.willrobotstakemyjob’ says that 94% of accountants are doomed as the bots will be doing their work as, long suspected, no human brain is needed. Computers have developed so have most companies. Smartphones, tablets and high-speed computers have replaced face2face.
Robotics and smart algorithms will shake up the City and Wall Street. Subsets of AI that excel at finding patterns and making predictions are already available. PWC and JP Morgan-Chase, all now have the positions of “Head of Machine Learning.” Being a hedgefund manager might be trickier when the role is going to require a sophisticated knowledge of machine algorithms. If a computer can tell you where to put your money, why bother with a person? This is just the start of where Fintech is heading. New trading strategies, and new ways of analyzing consumer patterns are only going to improve and change the dynamic of Canary Wharf. Clearly being able to spot trends faster than ever before is only going to see a boost in productivity.
For the consumer we can use voice ID, touch ID, and facial recognition in the fight to keep your money in your pocket. Monzo, a startup British Bank, used especially by those under 30, inbuilt a system to stop fraudsters making a purchase – it’s fraud rate went from 0.85% to 0.1% in six months by the start of 2017. Things are moving fast.
China is leading the way on Fintech, and it’s looking to try and bypass the banks. With 700 million internet users, clearly the market is there to be tapped, so apps such as WeChat, which have inbuilt ‘smartpurses’ allow small transactions to be made, without the banks. Alibaba and other small firms provide small loans up to around £1000, which the bigger banks don’t provide – a niche which China’s banks are trying to stop. In a country that’s largely state run, the little companies are unsettling the giants of China’s financial sector.
Fintech is changing rapidly, and at the moment really is the hottest field within finance. As more go into a very lucrative field, the bigger banks are going to have to adapt to these changes. Ten years ago we saw a banking collapse across the world, and in ten years’ time that system will be almost unrecognisable with the rise of Fintech. Small companies are going to lead this, Wall Street take note, your job might be in the balance.
