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 online investment platforms that use algorithms to give financial advice and manage investment portfolios. People of all ages are now using them. At first, they were mostly used by millennials who were used to using technology to manage their money. Most of the time, robo-advisors are much cheaper than human advisors.This makes them a good choice for people who want professional help but can’t pay the high fees that traditional financial advisors charge.
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. ETFs are exchange-traded collections of securities. These are more liquid than mutual funds and offer lower expenses. ETFs are getting more and more popular because they make it easy for investors to diversify their portfolios without buying separate stocks and 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.