We could count the parts of our lives that have not been changed by the pandemic on one hand. The Coronavirus outbreak and its aftermath sent shockwaves through every market and finance world, through every industry, and we have all been doing our level best to find a way through the storm and keep our heads above water. Now, after the respite of the summer with the rolled back restrictions and the chance to see our friends and family, we are knuckling down to look ahead to the winter and 2022.
There is an important distinction to be made. Most of us felt like the pandemic forced us to stop dead in our tracks. We locked down, we worked remotely, and many of us had to shutter our places of business temporarily. But nothing ever really stands still, and there has been an evolution going on even while it seemed as though nothing was moving at all. Technology advanced to accommodate these new challenges and to allow businesses to keep going. Traditional attitudes were jettisoned in the face of the new normal, or at least adjusted. There has been an undeniable evolution in all corners of the business world, and finance is no exception. Here are just a few examples of how the finance world is evolving, and what this means for you.
Ethical Investments Are On The Rise
We will get to the more immediate effects of the pandemic in just a moment, but one of the most interesting impacts that COVID-19 had was that it forced everyone to take a step back and acknowledge the reality of climate change. This was no longer an issue that could be ignored or paid lip service to. This was something that demanded immediate action. Whether it was the ice storms in Texas or the Venice canals turning clear because people weren’t there to pollute them, the effects were visible, and the warnings were ever more dire. As a result, there is greater pressure than ever on businesses to invest ethically. This means making investments that take the social and environmental impact into account, or even peace and prosperity. These will have high returns.
There Are Changes Coming To Pensions
On 11 February 2021, the government brought the Pensions Scheme Act into effect and there are significant changes that you should be aware of. Let’s start with the fact that there is a stronger Pensions Regulator, which means that they can impose bigger fines and potential prison sentences of up to seven years if there is wilful or reckless behaviour or obvious negligence. They are also going to have the power to scrutinise corporate activity in greater detail, and companies will be required to submit more information.
Some of the changes are a little more administrative, such as a new pensions dashboard that will allow people to view all their information in one handy location. The pension industry is changing to protect the people putting their money in, and you can learn about more pension industry trends to watch out for at Procentia. Procentia can help your business with its pension software and create a solution that is tailor made for you.
Security Is More Important Than Ever
It seems somewhat redundant to say that security is important in the finance world, but what we have witnessed since the start of the pandemic has been a major wake-up call. While people in the sector would have been better prepared for ransomware attacks and other cybercrime attempts than most, we saw cybercrime numbers skyrocket after March 2020 and experts are convinced that this trend is not going anywhere. The good news is that cybersecurity is also evolving, and we are going to see a widespread implementation of more comprehensive security measures in the months ahead. AI technology is at the forefront of this new approach, which brings us to our final point.
Embracing The New Normal
One of the most important elements in the finance world’s evolution is that it is embracing this new normal that we have found ourselves in. The pandemic showed us that you can prepare for as many different worst-case scenarios as you like, there will always be something that you could never have predicted. Flexibility is going to be absolutely crucial going forward.
With market volatility likely to continue as new variants rear their heads and the UK continues to discover new wrinkles in its withdrawal from the European Union, the finance world is employing state of the art technology and moving away from many of the traditional way of doing things. Financial advisors are using new media and webinars to attract and educate clients. The aforementioned AI technology is going to be a key player in creating strategies going forward. If you work in finance, you need to make sure that you are educating yourself about the latest tools and technology to keep your firm moving forward.