#futureofwork: How AI will change fintech jobs, and advice to college grads how to benefit from this

  • The automation of the finance industry will hollow out jobs in that field in the same way that robotics and other technologies have reduced manufacturing employment. That is how:
    • Floor trader, of course, has long been the archetypal job on stock exchanges. But there are precious few left of them.
      • Most trading jobs have been taken over by servers running trading algorithms.
    • Much of Wall Street’s back office operations involve the performance of relatively structured tasks.
      • Many of these could probably be taken over by tools like robotic process automation, which can reach into multiple systems for needed data and apply rule-based decision logic.
    • Regulatory compliance has been one of the few growth areas in recent years on Wall Street, but systems from Digital Reasoning are automating internal fraud investigations.
      • IpSoft’s Amelia is focused in part on facilitating compliance in customer conversations.
      • Narrative Science automates the creation of anti-money laundering reports.
      • RAGE Frameworks automates the extraction of data for credit and wealth management, and can create automated compliance reports on the process.
    • Many entry-level jobs on Wall Street involve combing through data to make a case for a particular financial transaction. That is an it job:
      • Kensho, for example, is a startup that analyzes data on markets and generates reports on their implications.
  • Another common task of financial analysts and attorneys is to prepare disclosure data on a company’s financial history for potential investors.
    • iDisclose does that automatically.
  • Another common role in the finance industry is to provide investment advice.
    • The “robo-advisor” concept / automated advice is becoming pervasive at the lower end of investing.
      • Vanguard, Charles Schwab, and Fidelity have all taken some steps in that direction
      • startups like Betterment, Wealthfront, and Personal Capital are pursuing Millennial customers with money to invest.
      • The capabilities already exist for higher-end versions of robo-advice, and a few banks like UBS have begun to explore them.
      • Investment advice is complex, data-intensive, and rapidly changing, so it seems very likely that there will be substantially fewer human investment advisors in the future.
  • There are other finance-oriented tasks that will be performed by automation, including some new ones involving ongoing financial management for consumers that should have been done by banks long ago.
  • It is a process: Job after job will be whittled away over time. Entry-level jobs will probably be the hardest hit; if you can teach a recent college grad to do a task, you can probably teach a machine to do it.
  • Advice for entry level grads:
    • There will be a substantial number of jobs that involve working alongside machines.
    • If you’re already familiar with key financial processes, you’ll have a much better chance of keeping your job if you learn to work alongside smart machines that perform key aspects of those processes — monitoring the machines, fixing them, and picking up the ball when they drop it.
    • Or you can become skilled at overseeing them, understanding when the financial world has changed and when the algorithms are no longer well-equipped to deal with it.
    • Finally, of course, there will be many jobs involved in building intelligent finance systems.

Source

 

Leave a Reply