Monday, October 24, 2016

EJinsight: Man or Robots, Who Will Win in This Fintech Era?

The topic of the 2016 Financial Planning Association’s Annual Conference was financial technology.

Global financial planners discussed the future direction of the industry and how that would transform our daily life. One of the most interesting topic was whether artificial intelligence (AI) would eventually replace human beings in the financial services industry.

If so, which sub-sectors are more vulnerable?

We all know that computers can process a huge database and has advanced calculation capabilities. And robots are free from the influence of emotion and character. Quantitative trading that requires a lot of number crunching and discipline is exactly where computers excel, which is why fund managers in this arena are most vulnerable to the rise of machines.

By contrast, the value investment approach adopted by investors like Warren Buffett should be more immune to such technological change as it relies more on fundamental analysis and input from interactions with company management.

How about the impact for the financial planning sector?

Obviously, some financial planners will eventually be replaced by automated investment service. But those who handle high-end investors, which typically require a high degree of human touch, would be relatively safe ...

Continue on... ejinsight.com

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