Every six months, we award a $5,000 scholarship to a US-based student majoring in accounting, finance, or economics. As Xero makes small business accounting software, these industries are very close to our heart – so we like to help promising students on their way to success.
Our most recent scholarship winner is Hawk Jameson of the William E. Simon Graduate School of Business Administration. In his submission, he discussed ways in which cloud technology is changing the world of finance and the impact he predicts this will have on future jobs. Check it out below!
How is cloud technology making waves in the finance sector?
By Hawk Jameson
One of the most exciting aspects of today’s world is the ever-evolving technological landscape. From the possibility of self driving cars, to clean energy, to expedited travel solutions, to data storage, the world is a constantly changing place. Cloud Technology is at the pinnacle of these advancements and is rapidly changing the financial world. There are many large players in this space with Google and Amazon being two of the most dominant. Their presence is having a huge impact on the accounting, financial and economic sectors.
Data storage is increasingly important in today’s world. There is a growing world population with an explosion of connective technologies across the planet. Less developed countries are becoming rapidly developed and connected. China, with an enormous population, has become a global economic power. Digital banking and trade is stretching across the globe, reaching more and more people every day. With an increase in reach, there is a huge need increase for the storage of digital information.
Cloud technology is allowing everything to work faster and more efficiently. Large banks and financial institutions are starting to use cloud storage for their data storage needs, over their traditional data centers. Capital One is one institution that has already made the switch and is using Amazon Web Services (AWS) for its data storage needs. Some banks and financial institutions have concerns around the security and data encryption levels by the cloud hosts over their traditional sources. However, as technology develops, these cloud tech companies are ever increasing their security and client reliability. I fully expect almost all financial data to be stored in various cloud storage facilities in the next 5 to 7 years.
The concept of Cloud storage allows banks and financial institution to save not only money in storage costs but include flexible plans that allow easy toggle up or down of capacity for peak periods. These financial institutions and banks can now concentrate more on client development and retention. We anticipate a movement away from data analysis in these companies to more sales roles. It also allows easy access for an increasing customer base across the world. More individuals have digital access to their financial information, which will help expedite accounting and financial trading processes. We expect to see an increase in market trading as a result, particularly in less developed countries as they become more developed and technologically connected.
I personally anticipate this to have a huge impact on future careers. The biggest impact I see coming from cloud data storage is user data and how that data is used. With these huge companies collecting and storing an increasing amount of data, it gives them information about transaction frequency and purchasing trends, which will allow the cloud companies to better position themselves based on the ever growing customer base. I would imagine that there will be a huge push in job needs around data analysis by these companies. The value behind this data is almost endless. Expect a large push in analyzing buying habits and customer usage by various companies going forward.
Increased reach will also have a huge impact due to cloud storage. I believe in the coming years based on overall technological developments, that jobs for companies across the globe will be based anywhere. I personally plan on going into management consulting with a particular emphasis on data analysis and planning for these companies. The increase in cloud storage will allow professionals such as management consultants to perform services for companies on the other side of the globe as they can access their financial data seamlessly.
In an ever-changing world, cloud technologies will have a large impact in almost every sector of the world. From banking, to trade, to data analysis, the world is becoming more and more technologically advanced. Cloud computing opens the doors to decreased storage costs and increased analysis by customer companies.
* * *
From all of us at Xero, congratulations, Hawk! We can tell you’re going to embrace cloud technology in your future endeavours – please keep us posted!