4 февраля 2020 г.

On February 4, 2020, CFA Association Russia returned to the office of its long-time partner, Mazars Russia, and held a business breakfast that focused on the future trends in finance. One way or another, everyone who works in the finance industry thought about the future of his or her profession. With the world quickly going through the technological development, there certainly will be disruptions happening in the finance industry. Which skills will be in demand in the future and, most importantly, which ones will become obsolete?

To answer this and other related questions about the future of our profession, CFA Russia invited an expert from Switzerland, Dr. Guiseppe Ballocchi, CFA, Partner at Alpha Governance Partners and a member of CFA Institute’s Future of Content  Council, to talk about existing trends and some future scenarios for the finance profession.

There are several major global trends that are changing the profession. These are ageing demographics in developed countries, an increasing number of tech-savvy individuals, economic imbalances, more government footprint and changes in resource management. These trends are, of course, not specific to finance, but will significantly change the finance profession, the speaker said.

According to Guiseppe, as a result of these trends, we may expect to see four scenarios – fintech disruption, parallel worlds, lower for longer and purposeful capitalism. 

The first scenario will be characterized by the appearance of new business models due to new technological developments that would create disruption in the industry; the second scenario says that engagement in financial services and people’s preferences will differ by geography, generation, and a social group; the lower for longer scenario predicts that interest rates will stay low causing a lengthy economic slump, which in turn would lead to political instability; and the fourth scenario is the most optimistic one – the investment industry will become more professional, ethical and client-centered.

On a different note, Guiseppe added that existing roles, organizational cultures and demand for professional skills will change. People will be switching careers multiple times over a lifetime. This will lead to a need for T-shaped specialists with deep expertise in one field and a wider knowledge in several professional areas. At the same time, it will become a norm to use the combination of AI and human intelligence at work. 

Considering all these changes and future trends, one may feel overwhelmed and unsure about future career plans. That’s a pretty normal feeling, Guiseppe said, suggesting a roadmap for development, both for individuals and companies.

For finance professionals, Guiseppe pointed out three interrelated steps: always keep adapting, invest in the development of new era skills and harness technology.