Top 2021 Tech Trends to Shape Future Investments
May 10, 2021
One of the most extensive technological booms is happening around us right now. Every few months, we see a new technology sweep the market and shock the users and creators alike. Businesses in 2020 have made a conscious shift to better digitization and automation. This practice will further grow in the year to come.
This is the reason every list of the best angel investing tips starts with an investment in technology. Technological innovations make existing tasks faster and more efficient.
Before we dive into the technology of the future, we must understand where we stand today.
Not just the financial sector, all industries are making their way to a digital transformation. Everything today is online. Physical banks and offices are becoming remarkably oblivious. Every economic development today is either a website, application, or platform.
Since the pandemic of 2020, financial organizations that hesitated a digital transformation are forced to accelerate change. Very few people call a broker or agent today to invest. The whole ecosystem is online, and it works flawlessly.
Tech Trends to Shape Future Investments
Here are some of the trends to look forward to in the year 2021 and beyond:
It’s not surprising that blockchain is at the top of this list. They are often associated with Cryptocurrency; the most popular of them all is Bitcoin. Thet help to store information in a chronological chain. It’s a ledger or all the tractors made on the chain.
Over the last three years, digital currency has become the rage. The cost of a single Bitcoin has gone up to more than 100 times. Cryptocurrency is free from the conventional regulations of a bank and is managed by a vast database.
However, blockchain applications are now coming into other financial services too. They occur in fin-tech, retail, online shopping, and much more. Some banks have also decided to make a switch to blockchain for international remittances.
This is still a new wave of investment, but it seems like it is here to stay.
Artificial intelligence is the use of machine learning to create autonomous technology. In the financial and investment sector, they commonly suggest insurance plans, study financial history, and build credit options.
Banks can now use predictive algorithms to understand the credit score or create custom packages based on a person’s income. This is just a straightforward application that can also develop pricing models and offer customer support.
Today, machine learning and AI are commonly used for business intelligence and automates tasks that repeat each day. This is going to be a technology to speed up the investment process and reduce human error.
3. Clouds Storage
In simple words, using the cloud is nothing but placing your data remotely through the internet. This is done by placing an on-campus storage device that is securely linked online. The other way is purchasing cloud space from a third-party provider.
In the financial sector, hybrid clouds have significantly reduced paperwork and made data accessible much easier. Since it centralizes the data, it can be easily shared across borders.
This technology will help enhance the efficiency of a business’s faster data access ability e and easy hair growth. S and thus giving rise to more effective ways of investments.
The hesitation to invest using an online platform has reduced significantly in the last decade. This confidence arises from the rapid development of cybersecurity platforms and technology.
Cybersecurity covers the protection of not only your money but also your data. Most investments today are completely safe and protected by many layers of encryption and fireworks.
Other innovations like two-factor authentications, biometrics scanning, and stronger regulations on passwords have made this space very foolproof.
Once such innovations are a Cybersecurity Mesh, this is a boundary build around each user or each network to ensure a decentralized or distributed infrastructure. Think of these as digital walls that allow access only to trusted sources.
Even governments around the world are enforcing better cybersecurity to encourage better digital investments.
5. Customer-First Approach
While this might not imply a technological change, it is the sentiment behind innovation. Analytical tools have made it very easy to study consumer behaviour today. This means brokers and banks have multiple data points about an end-user.
This analytical information allows the investment provided to give the most accurate service to each client. A decade ago, more investment plans were a “one-size-fit-all-solutions.” The technology of today has made it easier to tailor-made these financial services.
Additionally, most technologies are tested with multiple people before it becomes a norm to ensure maximum customer satisfaction.
6. Quantum Computing
Quantum computing is currently at a very nascent stage in the financial world. To explain in layperson’s words — they are like a form of super-fast computer.
While the computers of today work on a binary principle (zero and one). However, a quantum bit can hold many values at once. This means the power of calculation valuation can go up a thousand times.
Once they become more mainstream and affordable, Quantum computing helps to enhance the security of any financial system. They can also process much higher-level data making it easier to study markets and provide better products.
This also means that data encryption would be faster, and hacking and breachers would become an impossible task.
Technology will always work towards making life easier and faster. Some of this might sound like it’s out of a sci-fi novel too. But technology has a way to grow fast. A generation before us did not have portable phones — today, we cannot live without them.