Sunday 24 January 2016

Tech companies first, banks second?

In Davos World Economic Forum, people want to hear from those famous tech companies and it seemed that many large companies wanted to move in the same direction as those tech companies. Around 10 years ago, people liked to hear from banks and other financial institutions. Does this mean that banks are now less important? I think that banks and the financial system are still very important; however, because of the 2008 financial crisis, people have realised the huge risk inside the financial industry and those big banks could bankrupt, the shareholders' expected profits of those big banks from holding the shares are lower, thus the share prices decrease. Meanwhile, the tech companies have made incredibly profits and people also see that how technology innovations have changed our lifestyles. Therefore, people expect more innovations in the future that can make a difference in our life. Compared with the tech industry, people generally know better about the moves of the financial institutions. In conclusion, banks are still important and necessary in our world economy but make fewer profits for their shareholders; meanwhile technology innovations have changed our life and raise our concerns about how our future life could be changed in both good and bad ways.

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