Despite the numerous technological advances in the FX industry in recent years, panellists at Profit & Loss Latin America emphasised the significant role that humans, and human relationships, still play in regional markets.
However, seemingly juxtaposed against the importance of human relationships is the inevitable drift towards further automation of FX trading activity.
As John Ashworth, CEO of Caplin Systems, explained: “The thing that separates regional markets from mainstream markets is that there’s still a very strong focus on relationships in the sales function, where human beings want to talk to human beings."
Technological developments present new challenges to both financial services firms and their staff, warned John Ashworth, CEO of Caplin Systems, at Forex Network London.
In a presentation "The Fourth Industrial Revolution: Society, Finance, Trading & Sales", Ashworth opened the discussion by questioning the assumption that the advance of technology is unambiguously good for business.
“The notion that an entry level economist would invite you to believe is that technology is a good thing, that technology delivers productivity, that productivity delivers advancement, that opens up new markets, and so forth. The reality is somewhat different,” he said.
The paradox of data is, as observed by panellists at Forex Network Chicago, while the data itself is becoming cheaper and more easily accessible than ever before, the resources being allocated to analysing it are increasing, bringing with it increased costs.
“The core fundamental cost of collecting data and storing and processing it is cheaper than ever,” observed John Ashworth, CEO of Caplin. “The premium is going to be on the labour force that will be doing the work on the data.”