The financial industry is rapidly changing. There have been significant changes with crowdfunding, cryptocurrencies, financial technology, and workplace diversity. Most of these changes will affect millennials and workplace talent. Here are eight of the biggest trends affecting the financial industry, according to Wasif Vimawala.
Crowdfunding Public Services
Companies are using crowdfunding for funding public places. One of the biggest problems that public services face is making spending decisions that fit the needs of taxpayers. As people are choosing where their money goes, crowdfunding has increased in popularity. It’s also been used to help public services make better spending decisions.
It allows businesses to pitch unique ideas to the public in an effort to increase diversity and potential for innovation and growth with public projects. The most popular form of crowdfunding is civic crowdfunding in which people choose the projects they would provide funding for and work to raise the full amount as a group of independent supporters. Civic crowdfunding will continue to grow, especially when it comes to funding local governments.
Financial Technology
Financial technology is improving the way that people manage their finances. Automation of services has helped eliminate mundane and tedious financial tasks. Whether it’s tracking your spending habits or receiving real-time data from the stock markets, investors are embracing the use of technology. Some of these tools can be helpful for those who want to better manage their finances as they get older.
For example, electronic vaults are used to collect and store information and provide access to financial accounts for an entire family. As people’s financial lives become more complex with time, technology has reduced the complexity and time spent on managing their finances.
Talent Gap is Getting Wider
The global economy is having issues with its lack of skills. According to the Bureau of Labor Statistics, there are 3.9 million job openings in the U.S. and not enough people to fulfill those roles. The financial industry is also having trouble finding the right talent to fulfill the required skill demands. It’s not only a threat to company growth, but it’s quickly becoming a global threat as well.
Twenty-five percent of CEOs had to cancel or delay a new initiative because they didn’t have the right workers to execute their plan.
Crowdfunding and Cryptocurrencies
Cryptocurrencies can be used to help facilitate crowdfunding, which makes it easier for companies to afford. The popularity of cryptocurrencies, such as Bitcoin, have been receiving more attention in the financial industry in the past few years.
However, critics believe that cryptocurrencies come with a slew of problems that will prevent them from replacing current or mainstream currencies. Some economists believe that the value of Bitcoin isn’t stable enough to replace traditional currencies.
Despite the disadvantages associated with cryptocurrencies, the ability to transfer small amounts of money at an affordable cost can help the crowdfunding industry. Crowdfunding and Peer-to-Peer sites have accepted payments in the form of cryptocurrencies, whether through bank transfers or third-party payment providers. These small payments reduce the fees associated with most online payments. Bitcoin allows small amounts to be transferred to crowdfunding sites without using a third-party processor such as PayPal.
Increased Workforce Diversity
Another trend that’s taking root in the financial industry is the increase in workforce diversity. Millennials are working longer hours than previous generations. More women are becoming the breadwinners in marriages while others are choosing to live single for a majority of their lives. Millennials are also faced with decreased employee benefits, higher turnover, and very little work-life balance.
These recent trends are factors for millennials looking to choose how they work, how long they want to remain in their career, and how they want to manage those benefits provided to them. As workplace diversity increases in the financial industry, organizations need to understand that offering a wide variety of benefit plans can ensure those benefits are provided for a wide variety of individual and family circumstances.
Millennials Demand Workplace Flexibility
Speaking of workplace diversity, there is even more pressure for financial companies to embrace that diversity. Workplace flexibility is becoming more in-demand than in any other industry. Yet, there’s still very little flexibility for workers. Most employees work from the early morning hours until late at night, often tied to market hours in New York regardless of where the employee lives.
Ninety-four percent of millennials revealed that workplace flexibility is a must, while 28% of them said the lack of flexibility was worse than they imagined. They demand workplace flexibility since their professional lives are overshadowing their personal lives. They want to find time for friends and family. Most financial jobs don’t allow remote work and don’t have spaces for collaboration and team work.
The Rise of the Crowdfunding Consultant
The increase in crowdfunding platforms has provided more opportunities for those looking to invest in some of the opportunities that these platforms provide. It’s becoming a common tool to raise funding for a certain cause, project, or purpose. Since there are so many platforms entering the financial market, there is an increase in demand for crowdfunding consultants. These are crowdfunding experts who offer their services to businesses and individuals using these websites.
With the increase of crowdfunding platforms comes an increase in failure rates. Not everybody understands that crowdfunding is a skill that needs to be mastered in order to be successful. That’s where a crowdfunding consultant comes in. These professional offer advice on creating a campaign and helping you attract potential investors.
Financial Offices Will Become More Casual
One of the trends that’s taking place in small financial businesses is the casual dress code. Many businesses are doing away with the business dress code and are embracing a casual one. In the coming years, expect to see less of the suit and tie and more button-down shirts and khakis. While most offices won’t wear jeans to work, business casual is more accepted than it ever was.