Technology has undeniably changed how financial markets and institutions function. Every part of the financial value chain is being "disrupted" by nimble technology based innovators. Credit decisions are automated, the payment system is digital and investment advisors are being replaced by algorithms. Where one-on-one relationships used to determine success and failure, the ability to process and act on massive amounts of data is taking over. Securities trading and origination typically the turf of large institutions is being taken over by technology. Not only has technology impacted finance - innovations like indexing and fee-based advisors are fast changing the market for advice. Technology and financial innovations can be used for good or not so good. It can be used to exploit behavioral biases such as underweighting catastrophic events - think of the financial crisis. Biases can also be used to help support positive behavior like automatic contributions to retirement funds. The course will study both the good and bad, regulatory aspects, and whether or not these innovations are exploiting or supporting "social welfare". All of these aspects are changing the skills required to be successful in modern finance. We will also cover how finance has changed and is changing, the skills required to be successful and what the future may bring.
Technology has undeniably changed how financial markets and institutions function. Every part of the financial value chain is being "disrupted" by nimble technology based innovators. Credit decisions are automated, the payment system is digital and investment advisors are being replaced by algorithms. Where one-on-one relationships used to determine success and failure, the ability to process and act on massive amounts of data is taking over. Securities trading and origination typically the turf of large institutions is being taken over by technology. Not only has technology impacted finance - innovations like indexing and fee-based advisors are fast changing the market for advice. Technology and financial innovations can be used for good or not so good. It can be used to exploit behavioral biases such as underweighting catastrophic events - think of the financial crisis. Biases can also be used to help support positive behavior like automatic contributions to retirement funds. The course will study both the good and bad, regulatory aspects, and whether or not these innovations are exploiting or supporting "social welfare". All of these aspects are changing the skills required to be successful in modern finance. We will also cover how finance has changed and is changing, the skills required to be successful and what the future may bring.
