As a futurist my vision has sometimes been seen as exciting and sometimes downright scary for the future of machines and science to enhance or replace activities and products in the world of Financial Services.
Some would say I am a dreamer who hopes to innovate better tools for the people working in Financial Services. Others would say I’m a realist who has embraced leading edge technology and applied it to everything that happens at AQMetrics.
One of the areas we see regularly at present is the alternative nature of instruments now traded on Financial Markets.
Historical data availability for these instruments is nonexistent, which in itself poses issues for the risk managers and traders who are working tirelessly to understand how best to measure their risk and return profiles. A good example of this is emissions data. In the EU for example the ETS data viewer provides easy access to emission trading data contained in the European Union Transaction Log (EUTL).
As time goes on the availability of this alternative data will provide historical trends and richer data for analytics purposes, which will in turn lead to demand for more data visualisation tools around alternative investment instruments and data in general.
The other area that the financial services industry has been impacted by for decades now is the lack of availability of transparent risk analytics and algorithms. With the merging of multiple concepts from computer science one can now merge data analytics, computational algorithms and machine learning to produce results that are both easily understandable and explainable from within the technology.
This will revolutionise the field of risk management across the financial services industry. Further it will change the future of work for those in this field. Paper based and theoretical application of the principles of risk management will be replaced by explainable AI driven robotic processes.
With 5G on the horizon the future of technology for financial services professionals has never been more exciting. The speed of data analytics, computerised decision making, and machine to machine communications will revolutionize the future of work in Financial Services.
This article first appeared in Top Tier Recruitment’s “The Future of Technology in Financial Services” report. You can read more, including other insightful articles, here.