June 29, 2017

ABOVE AVERAGE IS OVER:

Will Robots Rule Finance? (Nafis Alam, Sunway University and Graham Kendall, University of Nottingham | June 29, 2017, Discover)

According to consulting firm Opimas, in years to come it will become harder and harder for universities to sell their business-related degrees. Research shows that 230,000 jobs in the sector could disappear by 2025, filled by "artificial intelligence agents".

Are robo-advisers the future of finance?

Many market analysts believe so.

Investments in automated portfolios rose 210 percent between 2014 and 2015, according to the research firm Aite Group.

Robots have already taken over Wall Street, as hundreds of financial analysts are being replaced with software or robo-advisors.

In the US, claims a 2013 paper by two Oxford academics, 47 percent of jobs are at "high risk" of being automated within the next 20 years - 54 percent of lost jobs will be in finance.

This is not just an American phenomenon. Indian banks, too, have reported a 7 percent decline in head count for two quarters in a row due to the introduction of robots in the workplace.

Perhaps this is unsurprising. After all, the banking and finance industry is principally built on processing information, and some of its key operations, like passbook updating or cash deposit, are already highly digitized.

Now, banks and financial institutions are rapidly adopting a new generation of artificial intelligence-enabled technology (AI) to automate financial tasks usually carried out by humans, like operations, wealth management, algorithmic trading and risk management.

Posted by at June 29, 2017 5:42 PM

  

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