Increasing Reliance of Finance Careers on Technology
The rate at which technology is improving is constantly increasing every year, and more and more people around the world are using computers as part of their the daily job responsibilities. In business administration jobs, in recording sales, in monitoring inventory, and even in designing models or buildings, organizations and individuals have been relying on computers and technology than ever before.
Financial services are also fast becoming increasingly reliant in advances in technology to further their own means. Gone are the columnar pads used by bookkeepers, replaced by systems such as PeachTree and QuickBooks (career info found at this link). Businesses have also become much more reliant in Enterprise Resource Planning (ERP) applications that handle and integrate all transactions for them in one package.
As for stock brokerages and investments, manual trading in offices have also been minimized, replaced by trading over the Internet. This allows regular people to be able to trade stocks and currencies online even while on their coffee break or while lounging at home. Taking this one step further, as there are bots and applications where, given the proper settings, automated programs can do the trading for you. All you have to do is leave it on and check up on it from time to time, completing removing the need for human intervention. More about the career can be found at www.stockbrokersalarydata.net.
As of now, insurance, financial advising, and retirement planning have not yet been reliably penetrated by technology, although it can be expected that these fields would also be covered by advances in computer systems in the coming years. Learn more about the career of a financial advisor at FinancialAdvisorSalaryGuide.com. One of the reasons for this is that the aging baby boomer generation isn’t all computer literate and many still prefer to do business face to face and on a pad of paper. Eventually, financial transactions and analysis will start with online assessments and would probably be followed by online applications and approvals, specifically with regards to insurance sales by insurance agents who typically earn a base salary plus commission. If someone isn’t coming up with these types of services yet, then someone surely will in the coming years. Technology makes it much easier to manage all the investments and financial instruments that make up a retirement savings portfolio. In fact, most people don’t have anywhere near enough money saved up for retirement to allow them to maintain a comfortable standard of living. Check out www.averageretirementsavingsguide.com to find out where you stand and what you can do to save more for retirement.
So how does this reliance of several financial careers in technology affect the financial sector as a whole? If used properly, then the effect is nothing but positive. It is all a matter of embracing the right product and accepting all of the benefits that it entails. Using technology to support financial services will provide users and companies with more accurate, effective, and faster results that ever before as compared to relying on physical pen and paper. It also requires less effort for people, as all that you could ever want to do can be done within just a few clicks of the mouse and a few strokes of a keyboard.
However, these benefits are not without its risks. First and foremost, the main challenge behind every new piece of technology is the learning curve. People tend to resist change even if it will benefit them in the long run, and people in the bookkeeping industry think in pretty much the same way. Thus, it is the instigators’, whether it be the product vendor or IT department, responsibility to ensure that users are oriented on how to actually use the program and have them be comforted with the fact that technology is there to help them and not replace them.
Secondly, most technology has to be thoroughly tested first before they are considered to be stable. Thus, it is important to not rely on systems or bots from the get go. Take some time to test out the environment first before you go full force. This is the reason why most bot programs allow you to create simulations or use test accounts before trading with real money. This allows you to test the effectiveness and usefulness of a product before risking actual money during trades.
Lastly, it is important that your software is able to not only cover but also complement all of your needs. It is not enough to just use the application, but what is important is that it actually serves its intended purpose, plus more, if possible. Reports need to be generated, and trades need to be made as desired. All requirements have to be met; otherwise, it may be better to look somewhere else or worse, do it manually in order to minimize risks albeit increase work and effort.
Regardless of these advancements, it is often necessary to not forget face to face transactions, as technology sometimes fails when personal interactions do not. We should not forget how to do business the “old school” way, as it builds not only trust, but it also develops good interpersonal relationships with others as well. This is something that no piece of software, no matter how advanced, can provide.
While technology in the financial service sector can help out a lot in increasing productivity, let us not forget to use logic and common sense, and not rely on computers all the time. For example, investment bankers use a number of different software programs to do the legwork, but creativity, intuition and a good business sense are required to succeed in the occupation and earn every penny of the average salary of $87,740 per year. If, however, you are willing to entrust your business and hard earned money, then by all means, do so, as there have been many businesses that have flourished due to relying on technology. Be aware of the risks, however, and always make sure that whatever application you use is capable of supporting your needs in the long run so as to create a better and more efficient administration of your finances, investments, and profits.