It’s no secret that the finance environment is challenging to manage; it’s constantly shifting and frequently turbulent, necessitating executives with strong mathematical abilities and a pulse on new trends.
The financial sector has to change quickly to survive the 2008 Global Financial Crisis and the Covid epidemic. The financial environment is altering even more as a result of technological development. A move toward sustainable goals, and an increase in investment in innovation.
Growing investment in private markets is likely to take place in the future of finance
Companies are searching for more creative methods to invest as a result of the difficulties the financial sector has encountered recently. As private enterprises recover and investors begin to seek outside conventional investment avenues, there is a growing trend toward investing in private markets.
According to the 2022 BlackRock Private Markets Outlook study, which forecasts the continuous expansion of private equity investors throughout the world, the private equity market has quadrupled in the previous ten years from $2 trillion in 2010 to over $6 trillion in 2021.
According to Tom Luciano, an alumnus of the MSGF and executive vice president of PIMCO’s Financial Institutions Group, “investing in private markets presents a fantastic opportunity for individuals in the portfolio and investment strategy side of finance to extract more from markets.”
To make creative yet educated investing decisions, it is essential to have a comprehensive understanding of all financial markets. Through classes like Financial Markets, Governance, and Behavioral Finance, the HKUST-NYU Stern master’s in finance aids professionals in developing finance abilities that are transferable internationally. With every new cohort, these courses are continuously modified to reflect new market trends.
Charmaine Cheuk, managing director of real estate investment firm Greystar and a graduate of the MSGF program’s initial intake. Claims that networking with a broad range of finance experts throughout the master in finance program has enhanced her capacity for creativity.
The program, she add, “gives you the chance to take off your focused lens and explore different ways of thinking and finding answers because you are exposed to high-level ideas throughout the business.” With 17 different nationalities represented in the program, the MSGF cohort is made up of specialists from the banking and financial services industry to a greater than 70% extent.
AI and machine learning are the future of finance
Modern technologies like artificial intelligence and machine learning are having an influence on every aspect of the financial sector. From banking to fintech firms. AI is frequently used in the banking industry to avoid fraud, quantify and evaluate risks. And to analyze data and economic trends also.
According to Tom, a graduate of the MS in Global Finance program, “AI and machine learning will continue to converge technology, finance, and economics, allowing organizations to download data across the whole sector and evaluate larger economic and market patterns to better understand how to expand.”
The insurance sector has placed a special emphasis on utilizing AI and other technologies, with investments in insurance technology ( insurtech ) expected to reach roughly $15 billion in 2021, according to McKinsey research.
The HKUST-NYU Stern MSGF program has added new courses like Fintech, teaching students about the implications of disruptive technologies for investors and stakeholders in the future of finance, in response to the rising expectation that those in finance have a solid background in tech and data analytics.
ESG investment will be crucial in the future finance sphere
The financial industry is leading the way in the transition to a sustainable future as environmental and social responsibility rises to the top of the global agenda. Finance companies are demonstrating their commitment to achieving important climate goals by investing in Environment, Social, and Governance (ESG) concerns.
When deciding if a company is worthwhile investing in, Jim Yang, an MSGF student and vice president of CSV, a venture capital firm that invests in markets around the US and China, argues that ESG considerations are crucial to consider. Jim continues, “ESG integration not only improves value and returns for investors, but it also positions early-stage organizations for sustained long-term success.
Jim spent ten years working in the commercial banking industry before enrolling in the master of finance program. He claims that MSGF courses like Global Macro and Asian Markets gave him the broad perspective he needed to change careers and become an investor in both the Eastern and Western financial markets.
The impact of regulation
This trend toward more regulation is expected to continue to have an influence on the industry in many different ways as the global focus within the financial industry turns to the regulation of sustainable practices and digitization.
According to Charmaine, “the finance industry can grow with robust and principled regulation, and clients will acquire trust, leading to a virtuous cycle.” Finance professionals must stay current on the different effects that regulation will have on the field’s future because it is a dynamic one. Students in the HKUST-NYU Stern MS in Global Finance program examine real-world case studies that are focused on the current difficulties facing the financial system. During the 2008 Global Financial Crisis, Charmaine, a graduate of the MSGF program’s initial intake, was pursuing her master’s in finance.
During such a turbulent time in the financial world, she recalls. “The talks in class with both my instructors and cohort were crucial in helping me grasp how financial institutions were going to have to restructure along with government action.”
Blockchain in the future of finance
Blockchain, the technology that powers cryptocurrencies, has emerged as a key financial breakthrough. Within the linked global financial system, the decentralized blockchain network can lower and control risk.
“The MSGF curriculum has given me a thorough understanding of what is happening to the stock prices And value of emerging tech businesses in blockchain and cryptocurrencies,” says Jim, an MSGF student. “By looking at history and financial theories.” He continues by expressing doubts about the influence of blockchain on the direction of finance in the future as a result of this new insight. We must comprehend the true nature of this new technology and how it may alter people’s lives. Staying on top of these financial trends will be essential for surviving in the developing business. As the advent of new technologies like blockchain inside finance continues to disrupt the industry in unprecedented ways.
A master’s in finance is a practical approach to broaden your viewpoint while networking with like-minded colleagues. Whether you are a seasoned financial professional or are just entering the field after changing careers.
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