The field of finance and investment, which is one of the most sensitive areas in the world, is rapidly changing. Technology is one of the factors that is causing the rapid changes that are currently being experienced in this sector. Moreover, the finance sector has been steadily changing due to the incorporation of big data and an increased amount of money that can be invested. However, the industry is expected to have another significant shift due to the following trends.
Blockchain technology
One of the trends that will cause a significant shift in the field of finance and investment is the blockchain technology. This is an advanced system that is allowing the use of digital currency. These currencies can be used in any part of the world and are not restricted like the traditional currencies that can only operate within a particular geographical location. Due to the bounder less nature of blockchain and digital currencies, individuals will have an opportunity to invest in any part of the world.
Tax Reforms
Tax reforms are also expected to have significant impacts on the way the investments and financial strategies will be formulated and implemented. The federal government of the United States has formulated a new tax bill that is expected to be passed into in the next few months. It is anticipated that the new tax bill will have significant impacts on individual and company taxable income. The government might increase the disposable income that individuals or lower the amount of money that companies hold, which will affect the way individuals invest. This will lead to enhanced customer satisfaction (csat) and as a result, improved business.
Interest rates
Currently, the financial sector in the United States is experiencing difficult times as loans record higher interests rates as compared to the previous years. This has made all the assets in the country to be expensive. Given that the dollar affects many countries around the world, the same has been replicated in these countries, especially the countries importing products from the United States. Therefore, it will be difficult to access loans from financial institutions. Other lending entities are also demanding higher interest rates. Thus, there will be very low investment across all the sectors hence low economic growth.
Artificial Intelligence
Machine learning and artificial intelligence is another trend that will be changing the way the field of finance operates. Many investors are always using robots to predict the future of various investment opportunities. However, AI and machine learning are more accurate and will be helping individuals to invest their money in the lucrative investment opportunities available. AI and machine learning are accurate and reliable as they give high relevance to the investment opportunities that are less risky.
Young investors will continue to invest in technology survey companies. FinTech companies expect individuals to use their mobile phones to undertake their banking activities. This means that tech companies will continue to invest in financial applications that can make it easy for individuals to transact from one bank to the other. Other mobile apps will provide investment opportunities for those individuals who are interested in the e-commerce sector. However, conservatives and slow to react individuals will continue to make the banking sector to continue operating in an analogue way.