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Replacing Jobs On Wall Street With Robots

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There’s lots of talk about the effect that FinTech (or, at least the artificial intelligence (AI) and smart machines it’s producing) will have on jobs in the financial services industry. Here are a couple of examples.

In a recent CFA Institute survey, respondents indicated that automated financial advice tools will have the largest impact on the asset management sector, followed by banking, securities, and insurance.

At the recent Milken Institute Global Conference, Daniel Nadler, the chief executive of finance at the analytics firm Kensho, said traditional financial services firms, like J.P. Morgan, will still be here in the long run — “they’ll just be more efficient.” He goes on to say “Analysts, young associates, vice presidents — anyone whose job is moving a column of data from one spreadsheet to another is going to get automated.”

While AI and other robot-like technology could replace some jobs in financial services, it could be good for the industry as a whole. Firms could charge lower fees, gain more customers, and garner more respect from the public.

It’s also important to note that certain customer segments will be less affected than others. Ultra-high net wealth investors will still require the personal attention and advice that the mass market may not need.

Although the true impact remains unknown, it’s safe to say that solutions that leverage AI and provide automated advice are here to stay. Jobs will be replaced. Others will be created. We live in a world in which technology helps companies run leaner. That benefit should trickle down to the individual investor.

The use of smart machines is just one of the key trends that financial services organizations must have in mind in order to spur and sustain growth. To read about others, fill out the form below or click here.

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