Should Financial Advisors Be Worried About Blockchain Technology?

Share

It is not easy to find financial advisor and blockchain technology in one article because the market did not anticipate the disruption that the technology would create. Majority of financial advisors are not even aware of the connection of the technology to the financial market while some do not even know how to describe this new innovation.

Financial experts are already claiming that this piece of technology could actually disrupt the industry. Blockchain was the technology created as a foundation for what is now known as bitcoin cryptocurrency.

According to Willis Towers Watson’s senior economist, Magdalena Ramada, the popularity of the technology stemmed in the fact that people have finally become aware of its essence especially if they wanted to make transactions without being watched over by a third party such as the central bank. Blockchainis basically a ledger that records all information. Before information is recorded, it must be accepted by the blockchain. Once accepted, it can no longer be changed and the data are also not possible to be corrupted.

Ramada refers to the technology as a sociological innovation because transactions made over the internet was completely overhauled with its introduction. With this information, experts believe that blockchain will have a strong impact on the current financial industry since the main goal is to transfer values and assets through a reliable network.

Edelman Financial Services’ executive chairman and founder, Ric Edelman, believes that financial advisors that are not updated with this new technology will eventually be left behind. This is because the main goal of blockchain is to remove the middleman that used to be required in every transaction. With this, millions are going to have to say goodbye to their employment including stockbroker, ticket sellers and mortgage brokers among many others.

Companies are now starting to move to blockchain with Vanguard on the lead as the company transferred its assets worth $2 trillion. The commerce industry will see huge changes such as the sudden decrease of expenses and the rapid rise of security along with efficiency in transactions. Still, people will find financial advisor for the coming years because blockchain is not yet a perfect technology according to technology experts.

RichardADavis