SS&C Blog

BLOGS. December 18, 2019

The Importance of Advanced Technology Training

As technology continues to become more automated, the risk of quantitative trading, robo-advisory, or market surveillance algorithms replacing banking jobs is a great threat to Wall Street and others in the financial services industry. Rep. Bill Foster of Wells Fargo predicts that 200,000 banking jobs in the U.S. will be lost over the next decade due to the introduction of new technologies (Rundle 1). These new technologies include Artificial Intelligence, Machine Learning, cloud-based analytical software, and much more. However, the implementation of these technologies is not the only reason why AI is taking over Wall Street. According to Professor Marcos Lopez de Prado, “Financial machine learning creates a number of challenges for the over six million people employed in the finance and insurance industry, many of whom will lose their jobs, not necessarily because they are replaced by machines, but because they are not trained to work alongside algorithms.” The adaptation of this advanced technology can only be as advanced as those who are capable of utilizing it efficiently. If a machine learning or cloud-based approach is implemented without proper training or qualified employees, there is a risk of algorithmic glitches that can lead to market manipulations, failure of proprietary software, or misguiding clients.