Robots in Finance Could Wipe Out Some of Its Highest-Paying Jobs
Famed quantitative financial mathematician Marcos Lopez de Prado testified on Dec 06, 2019 before the U.S. Congress, together with four other panelists. The topic was "Robots on Wall Street: The Impact of AI on Capital Markets and Jobs in the Financial Services Industry".
Dr. Lopez de Prado is the Professor of Practice, Engineering School, Cornell University and Chief Investment Officer, True Positive Technologies. As per him the machine learning creates a number of challenges for the 6.14 million people employed in the US 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 retraining of these workers is an urgent and difficult task.
Nasdaq runs more than 40 different algorithms, using about 35,000 parameters, to look for market abuse and manipulation in real time. According to another panalist, Martina Rejsjo, head of Nasdaq Surveillance North America Equities, Nasdaq Inc., the massive and, in many cases, exponential growth in market data is a significant challenge for surveillance professionals. Market abuse attempts have become more sophisticated, putting more pressure on surveillance teams to find the proverbial needle in the data haystack.
According to CFA Institute's senior director Rebecca Fender, 43% of CFA members and candidates expect their roles to change significantly in the next five to 10 years, according to a survey of more than 3,800 respondents. The three roles most likely to disappear are sales agents, traders and performance analysts.
While Charlton McIlwain, professor of media, culture and communication at New York University said that racial groups that are already extremely underrepresented in the financial services industry will be most at risk in terms of automation and the escalation of fintech development. This is especially true given the vast underrepresentation of African-Americans and Latinx in the adjacent technology sector workforce.
Dr. Lopez de Prado is the Professor of Practice, Engineering School, Cornell University and Chief Investment Officer, True Positive Technologies. As per him the machine learning creates a number of challenges for the 6.14 million people employed in the US 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 retraining of these workers is an urgent and difficult task.
Nasdaq runs more than 40 different algorithms, using about 35,000 parameters, to look for market abuse and manipulation in real time. According to another panalist, Martina Rejsjo, head of Nasdaq Surveillance North America Equities, Nasdaq Inc., the massive and, in many cases, exponential growth in market data is a significant challenge for surveillance professionals. Market abuse attempts have become more sophisticated, putting more pressure on surveillance teams to find the proverbial needle in the data haystack.
According to CFA Institute's senior director Rebecca Fender, 43% of CFA members and candidates expect their roles to change significantly in the next five to 10 years, according to a survey of more than 3,800 respondents. The three roles most likely to disappear are sales agents, traders and performance analysts.
While Charlton McIlwain, professor of media, culture and communication at New York University said that racial groups that are already extremely underrepresented in the financial services industry will be most at risk in terms of automation and the escalation of fintech development. This is especially true given the vast underrepresentation of African-Americans and Latinx in the adjacent technology sector workforce.