The financial industry is always changing. Sometimes the changes are small and incremental, while other times, they’re more radical and disruptive. Either way, it’s important to stay on top of the latest trends so you can be prepared for the future. Here are four financial industry trends you need to know about.
1. The rise of robo-advisors: Robo-advisors are automated investing platforms that use algorithms to provide financial advice and manage investment portfolios. They first gained popularity among millennials who were comfortable using technology to manage their finances, but people of all ages are now adopting them. Robo-advisors are typically much cheaper than human advisors, which makes them an appealing option for people who want professional help but can’t afford the high fees charged by traditional financial advisors.
2. The growth of ETFs: Exchange-traded funds (ETFs) have been around for over 25 years, but they’ve only gained mainstream popularity in recent years. An ETF is a basket of securities traded on an exchange like a stock. Unlike mutual funds, ETFs can be traded throughout the day and often have lower fees.ETFs have become increasingly popular because they offer investors a simple way to diversify their portfolios without buying individual stocks or bonds.
3. The rise of impact investing: Impact investing is a type of investing that seeks to generate both financial return and social or environmental impact. Impact investors typically invest in companies or projects that address social or environmental issues, such as poverty or climate change. While the idea of making money while also doing good may sound too good to be true, impact investing is a growing industry with much potential.
4. The popularity of fintech: Fintech, short for financial technology, is a broad term that refers to any type of technology used to provide financial services. Fintech covers everything from mobile banking apps to cryptocurrency and everything in between. Fintech has become increasingly popular in recent years as more and more people move away from traditional banking products and services.
The financial industry is constantly changing, so it’s important to stay on top of the latest trends to succeed. Robo-advisors, ETFs, impact investing, and fintech are all areas that you should familiarize yourself with if you want to stay ahead of the curve.