I was rather pleased they reached out to me for my opinion on the topic, because of course, I have a vested interest in finance and it’s something I’ve worked in all my life.
The only problem was I was given a paragraph to write on it. For anyone that knows me personally, or has followed this blog, you’ll understand the problem: I need a lot more than a paragraph to explain my thoughts on most issues!
The question of technology and its affect on finance is a complex one with many different factors that must be addressed individually.
The basis of the answer I provided was that, essentially, technology has made the finance industry more accessible and therefor easier for consumers to use.
From my perspective, the most notable example of this is crowdfunding. This is because the medium has dramatically changed the industry by connecting innovators and investors.
When I first built the Cadman Capital Group, finding new investors was extremely expensive and time consuming. At that time, you really did need to practically know each investor personally in order to communicate and negotiate offers with them. And by communicate and negotiate, I mean making phone calls, signing letters, and getting documents together – all very tedious work.
Oh, how the times have changed! Investors come to us through many different streams – our website, email, and even from our social media pages. The opportunities to connect online are endless.
But it’s not all just about the sheer number of ways to connect anymore – it’s also about the speed of communication, in thanks to technology. Since we can now communicate with potential investors in real-time, it allows them to make decisions quickly (and takes out the need to cold call, fax, scan and all of those other ancient procedures).
This is why I’m exceptionally grateful that technology has made finance more accessible, but it can’t be denied that technology is also disrupting finance in a way that’s never been seen before. The rapidly changing landscape is to blame for the current “financial shakedown” that we’ve been experiencing over the last few months.
What’s more is that technology will only continue to increase in it’s scope and capabilities. Apps are being developed to work as a personal financial planner, by capturing data and putting it together into one easy-to-use page on a smartphone. These apps will be interactive, with the ability to overlay market data and economic factors that will allow you to interpret, for yourself, exactly where you want to put your money.
So what does the future of finance hold? A lot of changes, that’s for sure. But also the ability for everyone to take control of their decisions and fully understand the impact of their investments.