Algo Trading & Algo Matching: the end of our jobs?
Last week ING was quoted in Het Financieele Dagblad on their vision on the recruitment market and digitization. ING fears for the future of the traditional recruiter. In the same week I received an invitation for an event about FX algorithms. Apparently they bring more than speed, cost savings and accuracy. Should recruiters and treasurers fear for their jobs?
I started browsing the internet and of course stumbled upon recent studies telling us that the decrease in jobs will not be as dramatic as predicted roughly 10 years ago. Furthermore, it was easy to find articles about the negative scenarios as well as the positive ones. What stood out was the remark that 50% of the current young students will work in a job type that currently does not exist. What I learn from this is that they who develop, do not have to fear for their job and that modern technology will indeed help us do our job quicker, cheaper and more accurate.
Market parties will decide together what will be the focus in optimization of speed, cost or other aspects. Most likely the margins in traditional industries will be pushed down. So temp agencies will have to cut cost and banks will be forced to lower their margins on standard products like €-$ exchange and hedging.
But! Over the last weeks many listed companies reported lower profits due to FX losses. Standard products were not able to prevent this. And the labour market is getting tighter again, there is talk about the battle of talent again. A temp agency with a cost focus will not be able to deliver in a tight market. Successful CEOs understand that a cost focus will not bring them the competitive edge they are looking for. I am convinced new technology will be used to better manage FX risk and recruit the best in the market. We can and will inform you about exciting new developments in technology that will help us help you make better recruitment decisions and support your staff to bring the best they have. That is for future blogs. Do you agree with my observations?
Pieter de Kiewit