(ThyBlackMan.com) 2017 was the year of cryptocurrencies and their meteoric rise. 2018 was also the year of cryptocurrencies for a very different reason as the price of every virtual asset took a nosedive. With the previous two years being dominated by the rise of new financial products, Bitcoin et al were expected to dominate the headlines again in 2019. However, with public interest in cryptos taking a dip this year, other events have stolen the limelight.
With the UK and Europe still debating their political relationship, European banking has become a talking point this year. At the Financial Institutions Conference 2019, experts from S&P Global were on hand to discuss the future of banking in Europe and how best to prepare for current and future changes. Top of the agenda during the November event was the impact of Environmental, Social, and Governance (ESG) factors.
Destabilization Disrupts Banking
With GDP slowing for almost all countries and political unrest threatening to destabilize economies, banks are being asked to consider their leadership teams. Are those leading the leading financial institutions aware of the economic dangers and, more importantly, are they equipped to move with the times? Political disruptions are certainly weighing heavy in this regard. The US/China trade war has had far-reaching effects throughout 2019. From issues regarding oil reserves in Venezuela to textiles in South Korea, almost every industry has been hit by the tit-for-tat tariff battle.
However, along with the US and China having a dispute, Brexit is causing waves in Europe. The combination of these two political events has created a perfect storm in which financial experts are being caught short. For those at the Financial Institutions Conference 2019, that’s reason enough to think ahead and be proactive rather than reactive. The same themes were present during FX Week Europe 2019. With currencies such as the euro, pound and dollar all in a major state of flux this year, market issues were the order of the day. For those in attendance, Brexit and geopolitics were up for debate alongside the growing presence of artificial intelligence (AI).
The Unbreakable Bond Between Politics and Economics
Indeed, talks such as State of the Nation by Helen Thomas reminded industry experts of the unbreakable bond between politics, the economy and forex. For traders at large, these lessons are, perhaps, more important than ever. With the markets unstable, investors need to learn how to trade during a crisis. As well as tracking financial movements, knowing where to trade forex is important. Yes, looking at the bigger picture is necessary, however, taking into account personal decisions such as the spreads brokers offer, fees and leverage can all impact the profitability of a forex trade. Only by considering the micro alongside the macro can a trader make the right moves. In turn, this is the only way the forex industry as a whole can navigate the choppy waters of 2019.
The final financial theme of 2019 to become a talking point is technology. A veritable constant over the last decade, fintech has once again topped the bill at numerous conferences and events. At CogX 2019, 20,000 attendees convened to hear 687 speakers give their take on the state of financial technology. One of the standout talks at the event came from Marc Fungard, Global Head of Research & Analytics within Financial Crime Threat Mitigation (FCTM) at HSBC. Taking to the stage (see video above), Fungard explained how AI is being used to carry out qualitative and quantitative analysis on data. The aim of which is to not only detect financial crimes but decide how best to tackle security threats and prevent them in the future.
Tech May Not Be the Only Way
One of the most interesting points raised during the talk was that, while helpful, AI may not be the sole solution to financial crime. In his opinion, AI is great for identifying patterns and potential problems, but it’s not so good at defining context. That’s where human experience and knowledge come in. This point of view flies in the face of what many outsiders assume is true. Indeed, read the headlines on any given day and AI is probably being hailed as the next miracle solution.
However, Fungard believes that a union between technology and existing mechanisms, including human experience, is the way forward with regards to security. Heading in 2020, that’s a potentially game-changing concept. Although many would argue that AI can and will be the only way to stop criminals, it seems as though it’s not an open and shut case. Of all the points raised at financial events this year, this may be the most surprising.
However, when you stop and think about it, the fact we’re still hosting conferences is a sign that human input is still important. 2019 was another bumper year for financial events and, as the wealth of talks and differing viewpoints shows, there are no clear-cut answers. That, in part, is what makes finance so tricky to master but alluring for those that love a challenge. Indeed, if we’ve learned anything from this year’s conferences, it’s that nothing is ever certain.
Staff Writer; Ron Washington
