It’s been 32 years since London’s “Big Bang” brought all-electronic trading to global stock markets. Today, technology continues to dominate finance.

Even though human decision-making will always evaluate the definitive difference between success and failure, FinTech developments are breaking down barriers and reducing the ingrained advantages the biggest firms used to hold. Here are some of the key trends to watch in your quest to harness FinTech’s potential.

Intelligent Automation

Even the most hardened financial market traders are ultimately vulnerable to the human limitations of concentration and emotion. Look for more and more companies to emphasise fully automated investment and trading decision-making, particularly in managing funds. Perhaps the most interesting factor to track is the increased power and value of experts who write algorithms used by such robo-advisors.

As FinTech operations continue to evolve, technical advancements will cover more traditional banking functions. To compete in this automated industry, the financial sector should build the right mix of talent and embrace the new risk culture.

Big Data

Big Data refers not just to the sheer quantity of data that’s now available, but also to technology that fosters more incisive analysis of patterns in that data. It also involves the increasing availability of access to this processing and analysis on a “pay-per-use” basis rather than requiring a huge up-front investment. That puts smarter decision-making in more investors’ hands.

According to a 2019 study by IDC, the worldwide revenue for Big Data analytics is expected to hit $260 billion by 2022. In 2019, the projected numbers were expected to reach $166 billion, up 11.7% over 2017.

As Financial Times writer KamalikaSome notes:

“Banking is an industry which generates data on each step, and industry experts believe that the amount of data generated each second will grow 700% by 2020.”

Read more at Finance Digest here!

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