How is technology transforming financial markets?
Financial markets have evolved significantly in recent years. They have globalized and democratized. The improvement of technologies has greatly contributed to these changes, in particular with ever-faster transaction speeds which have enabled the development of new trading techniques. Fintech is still expanding and we can see the rise of insurtech very soon. For you, we have reviewed some key elements of this evolution
History of trading habits at a glance
In the past, traders placed their orders via their fixed telephone line. Each transaction took several seconds or even several minutes with the thread of human error and or difficulties of understanding. The technology then evolved with the arrival of the fax and then e-mail. However, this way of proceeding implied that the financial markets were reserved for a circle of insiders who were part of the network. With the development of the Internet and the improvement of connections, access to the financial markets has become more democratic, first through investment accounts accessible to individuals and then through the creation of genuine trading platforms that are secure and accessible to all. Thanks to these platforms, investors of all stripes can follow the markets and have real-time access to the prices of various financial assets. A private trader can constantly analyze the price of several stock market assets such as the price of oil, for example, a popular raw material on the markets. Technology has therefore strongly contributed to this evolution and all the more so with the arrival of HTML 5 in 2014.
Read also: Social trading: the full point
HTML 5 The exponential growth of the fintech sector and the possibilities of blockchain
Bank market
Another facet of the incursion of technology is the rise of fintech companies of which trading platforms are a part. In recent few years have of new financial intermediaries at the crossroads between banks and technology companies. In the first six months of 2019, French fintech had raised 354 million euros, almost the amount raised for the whole of 2018. The segment is growing.
The insurance sector is also changing with the emergence of insurance companies. The segment should also change significantly in the coming years with the generalization of blockchain technology which will, for example, make it possible to create contracts between individuals in a few clicks with micro-insurance type guarantees. and super fast transaction speed
For the uninitiated, HTML 5 (HyperText Markup Language 5) is the latest version of HTML. This data format is used to represent web pages.
This data format is used to represent web pages.
This data format is used for representing web pages.
This data format is used to represent web pages.
It is therefore a form of complex computer language. Steve Jobs was also one of the first-hour fans of HTML 5.
Thanks to HTML 5, applications allowing to buy and sell financial assets almost in real time could be created. Transactions on the stock markets have therefore been considerably accelerated, allowing investors to react quickly to geopolitical events, for example. If we take the example of oil again, it is of course essential that traders can adapt their positions in the event of political instability or incidents in the Middle East. Certain news in Saudi Arabia or Iran, for example, will obviously have an impact on world imports and exports of barrels of oil and therefore on crude oil prices. The speed of transactions has therefore become a crucial factor. We have also seen this with the spread of high trading, which relies solely on this transaction speed.
The exponential growth of the fintech sector and the possibilities of blockchain.
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