Innovation
Change is happening everywhere in the world. Innovation is occurring rapidly and new technologies are continually being released to consumers and producers alike. For the most part, these innovations have improved the world very much. With the latest technology, people are able to quickly complete important tasks from the press of a button on the phone that sits in the pockets of their pants. Technology has already changed investing immensely over the past 25 years, but more change is expected to come during the next 25 years as well. These are the ways in which technology may change investing over the next 25 years.
Quicker Exchanges
In order for a buyer to execute a trade on the stock market in 1980, they needed to visit a stockbroker and fill out a physical form to purchase their assets. Today, assets can be purchased with a few clicks on a computer or from the screen of a phone. Many trades happen within a matter of minutes, even seconds, on the modern market. Technology is getting quicker and it is expected that investing will become more digital as a result.
Different Job Positions, Different Job Descriptions
There are a variety of financial advisors who can give efficient advice to investors. However, the use of robotic advisors has grown rapidly in recent years. Robotic advisors, also known as robo-advisors, are able to make trades automatically or through user-specified parameters. Though it may not happen due to the confusion that many people already have regarding investing, the need for financial advisors may dwindle in lieu of readily-available online data.
There are many services that robo-advisors cannot currently offer that real-life financial advisors can. Therefore, it will become increasingly important for financial advisors to determine what value they can offer their customers. With the changing investment economy, financial advisors will need to determine what areas investors are lacking in.
Younger Investors
Many children have been given access to the internet from a young age. With the amount of investment information that is available online, some children may find it more valuable to purchase investments rather than spend their last dollars on games. Many apps, like Acorns, also promote investing the remainder of the money that children commonly spend on other items.