Wherever money is involved, it could be argued that issues will develop over time. And none more so than modern investment and the many sectors that it touches. Economic woes notwithstanding, there are more issues at the heart of the investment sector, some of which are rather dangerous. These include, but are not limited to, harm to developing nations and poor cybersecurity.
Charities, non-governmental organizations, and private firms alike are pouring money into development projects all over the world. Yet there is never enough to go around. You could speculate that there is something amiss concerning funds, and private firms can demonstrate GIPS compliance. What is evident, however, is that figures don’t lie. And as we contribute more and more to sustainable development goals, there is still a shortfall of around $4 trillion per year.
Impact of your money caused by economic situations
Like any sector, investment is moved and shaken by economic situations. The past few years haven’t been kind to most, yet savvy investors can ride the storm and even profit from bad times.
However, it is almost always the larger firms that win out, and small to medium-sized investors have lost 13% of business this year alone. Conversely, some of the larger investment firms have seen an increase in fortune, with an average investment and profit increase of up to 3%.
Poor working conditions, low pay, and slavery
Businesses that make money always seem to want more. And some of the most unscrupulous are known for poor employee conditions, low pay, and even downright slavery in countries where they can get away with it.
Investment firms are supposed to report their findings and cease business with such companies. Yet of the 795 British investment firms surveyed, most of them report only the bare minimum of their internal findings, leaving slavery a potential issue still.
Artificial technology and the mass investment around it
But there are other issues to be concerned about. While fintech is a relatively new venture and an exciting one, there are other trends emerging in global investment markets.
For example, artificial intelligence has had a bumper year, with masses of investment. So much so that it is estimated to reach a value of over $900 in three years if the current rate continues. Yet investment trends come and go, and a safe bet today could be a possible gamble tomorrow.
Financial technology — or fintech — and what it could mean for your money
Fintech is one of the newest types of investment sectors, mostly owing to the rise of cybersecurity. To put this in perspective, over half of the world’s biggest financial institutions have suffered at least a ransomware attack this year alone.
Yet that figure is up by more than 60% from the previous year. The nature of Fintech, being always online, connected, and moving potentially vast sums of money and cryptocurrency, leaves it wide open to attack by hackers.
Shortfalls in capital
Global investment problems are hit head-on by the poorest developing countries, which see huge shortfalls in capital. This contributes to some of the world’s most abhorrent issues, such as modern slavery, with investment firms doing little to report it.
Yet one of the most worrying problems with investment, as it always has been, is that you are gambling with your money.