With new innovations being announced every day, technology seems to advance at a blinding pace. Your social media feed teems with videos touting new inventions and new technologies. News reports and magazines crow over the “next big thing” on a routine basis. When it comes to investing your cold, hard cash, just because something looks flashy doesn’t mean it will be successful.
Because of this new industry’s massive potential for growth, investors would be well advised to earmark some money for “fintech”, or financial technology. Fintech is the computerization of money management. Banking and payment services that are quicker, easier, and more precise. Investment and asset management driven by AI (artificial intelligence). Even insurance and blockchain transactions. According to Business Insider, “Fintech could be bigger than ATMs, PayPal, and Bitcoin combined”.
Internet of things
Another hot area for investment in technology is the so-called “internet of things” (IoT). It refers to actual objects in the physical world that make use of internet connectivity. Basically to enhance their operation and/or their ability to communicate with the user. The home security system that can be armed remotely from your smartphone is a good example. The security app can access and monitor cameras linked to the system. Also, your appliances can talk to you. Refrigerators that allow you to scan product bar codes as you load them up. This can tell you when your milk is about to expire and place an online order when you’ve run out. “Smart houses” are only going to get smarter, so you can be confident that your investment dollars will grow.
Ever-advancing technology comes with ever-increasing piles of data, and data analytics is another hot sector of tech. Using data to analyze and to act rather than simply to monitor and inform will become the ongoing trend. Data analytics, currently used mainly to optimize business practices, can also come into play when considering IoT applications. Analysis of data collected by things can optimize ones lifestyle.
Virtual reality has long been considered a novelty more closely related to video games. However, it is beginning to find practical applications in the fields of commerce and manufacturing. Retailers can use VR to allow potential customers to test and react to a proposed store layout. To see how easy, comfortable, intuitive, and inviting it is before making the commitment to bricks and mortar. Product designers can tweak designs in response to VR testing without making countless prototypes. Virtual reality also has medical applications, and medicine will continue to be a growth sector as our population ages.
To that end, the last item on the investment list is medical technology. Other technologies may become outmoded. The human body is what it is, and it will need care. The most populous generation, the Baby Boomers, age into their 60s, 70s, and beyond. Technological advancements in medicine and medical innovations will continue to keep up their explosive pace. Nanotechnology, wearable medical devices, and DNA coding are just a few areas poised to see major growth within this sector.
These five technologies hit the “sweet spot” of investing. Pick one or more areas of interest. Do a little research to find specific stocks or projects to direct funds to. Then sit back and watch your garden grow!