How technology influences markets and lives

61

In a digital world that is rapidly evolving, technology is opening up new perspectives every day in every sector and industry, strongly affecting our everyday lives. We are all living in a great transition society dominated by the technologies advancing at an unprecedented pace.

In this rapidly changing environment, technology is a big player relying particularly on connectivity, 5G, large-scale Internet of Things, Artificial Intelligence, etc.

The forces of many innovative ecosystems had joined to bring about the solutions of tomorrow more quickly. Research and innovation teams from all fields, encompassing software and hardware, data scientists, cybersecurity experts, joined the forces to support and disrupt all segments of human existence. 

The impact of IT on financial markets

The range of possibilities is immense. It is a great opportunity for financial markets to innovate, offer new useful services to customers, and streamline, optimize, and enrich their trading experience. The implementation of top-notch informational tech achievement and big data has reshaped the financial market and trade process in many ways. 

Online trading and the new technologies

Decentralization of the markets, especially the currency market, took place a decade ago. But lately, we have seen a real game-changing transformation attracting a tremendous number of new retail traders. The same is for the stock exchange market.

Far behind us are the times when traders gathered at the trading halls shouting the company’s shares’ prices. The prices and companies’ performance data are now a click away from anyone who is into stock trading.

Technology helps lower transaction costs and increased volumes of daily trading transactions. The trading platforms’ concept is intuitive and allows real-time trading and market conditions analysis. Meta Traders 4 and 5 are the most prominent ones. It opens the financial markets even to those who are not so familiar with it. Automated trading is the choice of many who don’t have time to sit in front of a computer.

Of course, integrating the new software solutions into the trading processes inevitably raises the concern of the security of transactions. It can also question the traditional balance of relations between the main categories of actors: market companies, intermediaries, and investors.

Social media impact

We cannot neglect the impact of social media as an integral part of new technologies and its influence on all aspects of online trading. More than ever, traders and investors must focus on everyday economic news and events on the geopolitical side to make the decision resulting in profits.

Social media is the tool for acquiring the most precise information about the shifts in a company’s leadership, changes in business policies, and many more, which is crucial data in shaping the picture of companies’ performance.

Also, social media platforms became the places to get trading signals and tips for accessible fees.

Blockchain role in finance

With the emergence of the blockchain, it is possible to keep a precise history of interactions between users of the same service without a zero possibility of modification. Bitcoin, for example, has shown that we can reduce the number of intermediaries in transactions without sacrificing data security. Moreover, stock Exchanges, for example, use a blockchain to electronically sign financial documents.

Disruption in online payment systems

Online payments are increasingly used with the rise of e-commerce which is experiencing growing success. Many websites offer you to use an electronic wallet where payment data is stored. The electronic wallet makes the payment process simpler and more fluid. Besides, there is no communication of your card data to the website owner.

The new technologies are irreversibly changing our way of life. A way of life that will have to be completely adapted in the years to come. Little by little, we are all going to get used to trading, consuming, and living in a totally different way. The way we already see is widely adopted.