Do Fintech dogs exist? Yes! Switzerland has 521’891 of them!

Over the past years Fintech has transformed the way how the collection of dog taxes is being ensured in Switzerland. Modern technology, dogs, their owners, vets, the police, and tax authorities work hand in hand to safeguard the levying of dog dues. The result is a process that provides benefits to everyone involved.

For decades Switzerland has been known for its rather lenient approach to taxes. However, this certainly does not apply to dog taxes. Take, for instance, Zurich: 7’156 dogs peacefully coexist with the human population of the city. If you walk your dog on the streets of Zurich, you can be pretty sure to sooner or later bump into the taxman, or – to be more precise – into a dutiful policeman with a handheld RFID reader. Any dog kept in Switzerland must be examined, registered and chipped by a vet within three months from birth. The policeman checking your dog will then read out the data on the microchip which was subcutaneously implanted in your canine. A wireless connection is established from the RFID device to the AMICUS database in the Swiss capital Berne where all dogs of Switzerland are supposed to be registered. Should the dog be listed in the city of Zurich, the policeman can furthermore access the database of the municipality to verify in real-time whether you have already paid your dog dues. If not, you may be fined on the spot.

Benefits of a digital monitoring process

This system has three major advantages over the previously used dog tags that you put on the dog’s collar in order to prove that you paid your taxes: First, there is no more hassle with physical badges. Second, the system works highly efficient as it runs online and in real-time. And third, as it operates in real-time and as the chip serves as a unique identifier of the dog, it is virtually impossible to dupe the system.

Next to these advantages, there are several other advantages, such as the easy identification of the owner of a stray dog, even if the dog wears no collar. Moreover, dog trafficking from puppy mills abroad is severely hampered by this system. But most importantly, the vaccination record of the animal is also linked to the unique identifier of the dog’s microchip, so that meddling with vaccination histories is prevented.

Pervasive Fintech solution

The Fintech dogs of Switzerland are yet just another example how pervasive Fintech has become in the meantime. In this case it did not come as a revolutionary big bang, but it slowly moved into the everyday’s lives of all Swiss dog owners. It was painless process for all stakeholders (except for the dog who feels a sting when the chip is being implanted) and it yielded unprecedented efficiency and safety levels. Moreover, this example is not yet another Fintech showcase, but more specifically a RegTech and TaxTech example that provided all stakeholders with additional benefits.

Let us just hope that this system will not be taken to the extreme and that humans will be spared of getting a microchip implanted for tax purposes.

Dr. Patrick Schüffel, Professor, Institute of Finance, Haute école de gestion Fribourg, Chemin du Musée 4, CH-1700 Fribourg, patrick.schueffel@hefr.ch / www.heg-fr.ch

Une définition scientifique française de «Fintech»

Supplement Bilan avril 2017

Avec son numéro d’avril 2017, le journal suisse «Bilan» a récemment publié un supplément sur Fintech en Suisse. J’étais ravi de constater que l’éditeur a cité ma définition de Fintech, précédemment publiée dans le Journal of Innovation Management. Comme la publication originale était en anglais, la traduction française publiée par Bilan est la suivante:

«Fintech est une nouvelle industrie financière qui déploie la technologie pour améliorer les activités financières.»

(Patrick Schueffel tel que cité par Comment la suisse se profile comme un centre Fintech compétitif, Bilan 4/2017, supplément Fintech – Construire la finance de demain, p.6)

Pour votre référence, prenez également note de la version originale en anglais de la définition qui a été publiée dans l’article scientifique suivant: Schueffel, P. (2016). Taming the Beast: A Scientific Definition of Fintech. Journal of Innovation Management, 4(4), 32-54. 

Fintech is a new financial industry that applies technology to improve financial activities”(Schueffel, 2016; p. 45)

 

Dr. Patrick Schüffel, Professsor, Institute of Finance, Haute école de gestion, Fribourg Chemin du Musée 4, CH-1700 Fribourg, patrick.schueffel@hefr.ch,www.heg-fr.ch

Eine deutschsprachige wissenschaftliche Definition des Begriffs “Fintech”

Kürzlich erschien in der englischsprachigen Fachzeitschrift Journal of Innovation Management mein Artikel zur Definition des Begriffs Fintech: Schueffel, P. (2016). Taming the Beast: A Scientific Definition of Fintech. Journal of Innovation Management, 4(4), 32-54.

Nach der Durchsicht von über 200 wissenschaftlichen Artikeln, die im Verlaufe der vergangenen 40 Jahre erschienen und in welchen das Wort Fintech benutzt wurde, hatte ich in diesem Artikel die folgende Definition des Begriffs Fintech abgeleitet:

“Fintech is a new financial industry that applies technology to improve financial activities” (Schueffel, 2016; p. 45)

Da der Artikel ausschließlich auf Englisch veröffentlicht wurde, erreichten mich zwischenzeitlich zahlreiche Anfragen, wie diese Definition ins Deutsche zu übersetzen sei. Gerne möchte ich diese Frage mit der folgenden deutschen Definition beantworten:

„Fintech ist eine neue Finanzindustrie, welche Technologie verwendet, um finanzielle Aktivitäten zu verbessern.“

Mit besten Grüssen

Patrick Schüffel

 

Dr. Patrick Schüffel, Professsor, Institute of Finance,
Haute école de gestion Fribourg
Chemin du Musée 4
CH-1700 Fribourg
patrick.schueffel@hefr.ch
www.heg-fr.ch

 

A Scientific Definition of Fintech

 

“Fintech is a new financial industry that applies technology to improve financial activities.” (Schueffel, 2016; p. 45)

This is the definition I derived after examining more than 200 scholarly articles that were published over a period of 40 years and which are referencing the word Fintech in one way or the other. Building on the commonalities of the definitions that found entry into those peer-reviewed journals I distilled the definition provided above.

I am proud that my work withstood the rigorous double-blind peer review process of the Journal of Innovation Management and was published these days.

As the Journal of Innovation Management is an open access journal you can retrieve the full text by using the following link:

http://www.open-jim.org/article/view/322

A big thank you goes out to the two anonymous
reviewers for their highly constructive comments and to the editors of the Journal of Innovation Management, Anne-Laure Mention, João José Pinto Ferreira and Marko Torkkeli!

Schueffel, P. (2016). Taming the Beast: A Scientific Definition of Fintech. Journal of Innovation Management, 4(4), 32-54.

Dr. Patrick Schüffel, Professsor, Institute of Finance, Haute école de gestion, Fribourg Chemin du Musée 4, CH-1700 Fribourg, patrick.schueffel@hefr.ch,www.heg-fr.ch

 

Why do seasoned private bankers not understand the Blockchain? It’s in their DNA, stupid!

Seasoned private bankers often do not grasp the idea of the Blockchain. It was not until I understood that I was using the wrong vocabulary that I could convey what the Blockchain was all about.

Have you even tried to explain the Blockchain concept to a seasoned private banker? Have you tried to describe the notion of a distributed ledger to this type of auditorium? And have you experienced the same result as I have over and over again: have you, too, just banged your head against a brick wall? I pondered the question why it was so much harder to explicate the concept to alleged banking experts than to first-year business students.

Use the right vocabulary

After numerous futile explanation attempts, it dawned on me. I was using the wrong vocabulary. Using the word ledger is counterproductive to the cause. When talking about a ledger, the traditional banker immediately translates that term into “bankbook” and that is the book in which the bank keeps all records of all customers adding and taking money from their bank accounts. It is thus the holy grail of private banking. Distributing the holy grail is inconceivable to many a private banker.

At that point it then hardly matters if you continue to explain that the users of the Blockchain are typically anonymized. It is almost futile to further explicate that, for instance, Bitcoin accounts are not tied to the identity of users and that anyone can create new and completely random Bitcoin accounts at any time, without the need to submit any personal information to any party. You have lost them already. Hence, what I found helpful in this situation is to refrain from using the term “ledger” altogether. Instead I call it distributed data base or distributed accounting system.

Give them a hands-on example

A friend of mine and design thinking pioneer, Michael Lewrick recently recommended me to do a hands-on exercise in particularly tough cases. Individually assign a random yet different number to every one of the ten bankers that are sitting in a room with you and have each of them note down their number and favourite colour on a separate sheet of paper. Have them pass on the paper to another participant and everyone repeats the exercise. Do so altogether ten times. In the end, everyone holds a list of 10 numbers and favourite colours in their hands. At this stage you can ask a) “What is Bob’s favourite colour?” – the others shouldn’t be able to tell as Bob’s identity has been anonymized. Yet you can also ask Bob, whether the correct colour is listed on his sheet – which should clearly be the case. And b) you can ask someone to now commit a “fraud”, i.e. to change the favourite colour of one participant – which should be nearly impossible unless the tasked fraudster does so on ten sheets of paper with the nine remaining group members agreeing. This exercise nicely explains some of the key features of the Blockchain and monies based thereon.

It’s worth trying

These two measures combined, using audience specific language and a hands-on exercise should therefore do the job. It certainly deserves a try. The Blockchain concept is too important as we could afford leaving private bankers behind. Happy explaining!

Dr. Patrick Schüffel, Professsor, Institute of Finance, Haute école de gestion, Fribourg Chemin du Musée 4, CH-1700 Fribourg, patrick.schueffel@hefr.ch, www.heg-fr.ch

The IBank

The personal balance sheet
The personal balance sheet

The number and diversity of Fintech offerings is soaring. As banking clients increasingly often enjoy not only a better user experience, but also cheaper rates at Fintech firms, their willingness to be locked-in with one or two universal banks diminishes. Henceforth clients will gradually assemble their own individual “banks”, comprising a range of offerings from different Fintech companies. Those firms which will be able to provide an overarching structure to seamlessly wrap the multitude of Fintech offerings will experience their heydays.

Modern production technology allows what would have been inconceivable only a few decades ago. If we want, we can have products of mass production tailored to our needs nowadays. Dell made only the beginning when first assembling PCs to our requests on a large scale. Today we order our tailored sneakers at Nike ID, wear a unique t-shirt from Spreadshirt and eat M&M’s sporting our very own initials. Yet, the trend of mass customization did stop in the manufacturing sector. We can already observe its ramifications in the financial services industry where Robo-Advisors offer retail customers to tailor their client portfolios. But this is not the end point of the evolution. It is the mere beginning which will eventually lead to tailored banks.

The personal balance sheet

Like it or not, every single one of us carries his or her own very personal balance sheet: On the asset side, we have liquid asset positions such as the cash that we have in our wallets, the money on our current accounts, our savings accounts or money market instruments. Our personal investments may comprise medium term notes, bonds, stocks, mutual funds, pension savings and/or alternative Investments. Finally, we may possess highly illiquid real estate investments such as our primary residences, vacation homes or even property that we rent out.

On the liability side we may also have a variety of items. Current liabilities may include unpaid bills, credit card balances, taxes due, installment loans due in the short run, consumer loans, car loans, student loans, mortgages due within one year etc. Non-current liabilities may include any consumer, car or student loan that is due after one year. Last but not least, we may have mortgage debt for our primary residence and/or vacation homes and/or rental property.

Hence, as individual as we are as human beings, as individual are our personal balance sheets. Yet, what we do have in common is that we willingly or unwillingly manage these balance sheets. We carry out treasury functions on our personal balance sheets by paying bills and installments, transferring money from one account to another, by investing in shares or by redeeming mutual funds etc.

The Fintech Alternative

So far many consumers in the western world have ties to one or two banks, oftentimes universal banks, that cater to all of the needs resulting from these treasury transactions. Yet, the service offerings of universal banks are increasingly rivaled by Fintech firms that offer a narrow, yet highly specialized service or product.

If you have a little cash to spare, Fintech firms such as Creditgate24, LendingClub or Crowdcube, have offerings for optimizing liquid assets. To manage longer term investments one can turn to providers such Wealthfront, Moneyfarm, Nutmeg, Addepar etc. On the liability side, too, there is a vast array of Fintech companies jockeying for position. Current and medium term liabilities may be optimized by using Affirm, Borro, Lendable, Prosper etc.

In order to transfer money from one provider or account to another the consumer can chose among dozens of payment providers such as TransferWise, LiquidPay, Paypal and the likes. For trading purposes the client may want to turn to eToro or Robinhood. Even donating money becomes easier and less burdensome with Fintech providers such as Elefunds.

These new type of financial services providers that found their niches on specific links of the value chains of universal banks typically not only promise their clients a better user experience, but also lower costs. What is thus foreseeable for the near future is that clients will no longer accept to be locked-in with one or two banks, but that they will make use of a range of financial service providers. Eventually every user will assemble his or her very own bank, the IBank* as I call it.

Assembling the IBank

The IBank will comprise a selection of services provided by specific Fintech companies handpicked by the individual client. This can happen dynamically and on an ad-hoc basis or on a more permanent base. The client – or an overlaying algorithm for that matter – may decide on a case-by-case basis which payment service would be optimal for a specific transfer. On a more longer term basis one mortgage provider may be chosen until the renewal of the mortgage is due.

What is important to note, however, is that clients will make use of tailored “banks” which may be as personal as their individual balance sheet. The challenge and opportunity in this future banking world will be to provide the glue that seamlessly keeps together these services provided by different providers. Those providers who manage to assemble and maintain an overarching structure that smoothly integrates the multitude of service offering of Fintech providers will have a bright future in finance services world which is being ever more atomized.

*IBank like “I bank” – not to be mistaken with the iBank offerings by Barclays, The Bank of Georgia, Fransabank, BCU and so on.

Dr. Patrick Schüffel, Professsor, Institute of Finance, Haute école de gestion, Fribourg Chemin du Musée 4, CH-1700 Fribourg, patrick.schueffel@hefr.ch, www.heg-fr.ch

The Plight of the Lemming Robo-Advisor

(c) Nature Picture Library / Alamy, all rights reserved
(c) Nature Picture Library / Alamy, all rights reserved

There is a popular misconception about Lemmings. It is said that they commit mass suicide by jumping off cliffs when their population becomes too dense. However, this is quite far from the truth. Instead of committing suicide Lemmings will seek pastures new when their environment no longer serves their biological urges. As Lemmings can swim, they then may choose to cross a body of water in search of a new habitat. However, when doing so, many may drown as the fjords or rivers are too wide, thus stretching the Lemmings’ physical capabilities beyond their limits.

Financial markets and Lemmings

What is true, however, is that large populations of Lemmings move in one group, and it is this group migration that influences the moves of the individual Lemming. Once a significant share of the group has entered the water, the other Lemmings are likely to follow suit, inconsiderate of the potential fatality of their choice. Financial markets are not so different. Benchmarks are extensively being used and research in the field of behavioral Finance has yielded strong indications that herding behavior is rather pronounced. The broadly hailed Robo-Advisors of the Fintech age are likely to amplify this problem.

Mushrooming Robo-Advisors

Robo-Advisors are sprawling across the globe. A Robo-Advisor can be defined as a self-guided online wealth management service that provides automated investment advice at low costs and low account minimums employing portfolio management algorithms. Clearly, while there are exceptions, Robo-Advisors typically build client portfolios from ETFs, more specifically from equity ETFs. This model has worked fairly well as long as the stock markets were going up.

ETF monocropping

However, what will happen when the markets turn south? Most Robo-Advisors are not older than five years. Over the past five years the Euro Stoxx 50 went up 32%, the Dow Jones soared by 68%, and the S&P 500 grew by 78%. Against the backdrop of these well performing indices it requires no magic to put together a well performing client portfolio. Yet, in declining markets, the index-pegged Robos will just perform as poorly as their benchmarks.

No hedging functionalities

Evidently, the heyday of hedge funds are over. Clients are no longer willing to accept a 2/20 fee structure no matter the performance of their investment. Yet, as soon as markets move down for a prolonged period, many investors will start to liquidate ETF positions. These divestments will fuel another round of decline in indices. In this situation Robo-Advisors will be rather useless as they typically have no built-in hedge functionality. The herd of Lemming-Robos will just follow the rest of the market into deep waters.

Robo-Advisors must evolve

Not all is lost yet. Robo-Advisors need to make the next evolutionary step and get prepared for wider market downturns. Consequently, they should consider incorporating hedging functionalities into their offerings. Gambling on ever increasing stock markets is just too risky of a gamble. However, if the supply side, does not act, then the demand side should swing into action and diversify their ETF portfolios. Clients may therefore want to invest part of their assets into hedged investment structures of different provenance.

No matter the cause of the next financial market downturn, it is safe to say that it will happen. Lemming Robos which will not have enhanced their offerings by then, will not serve their clients well. A broad decline of equity indices may then lead to a true renaissance of the hedge fund industry. Human driven alpha generating strategies will then take back the lead from beta generating Robo-Advisors.

Dr. Patrick Schüffel, Professsor, Institute of Finance, Haute école de gestion, Fribourg Chemin du Musée 4, CH-1700 Fribourg, patrick.schueffel@hefr.ch,www.heg-fr.ch

Bundling: The Next Big Fintech Race

Moneyshelf ad

Bundling will be the next big Fintech topic after unbundling and platformization. Just as consumers got used to buying different food items at one single supermarket long time ago, they will expect one-stop-shops for financial services. Those “bundlers” that manage to seamlessly offer cost-efficient and dynamic bundles are well poised for success in this next race in the Fintech arena. Some important lessons can be learned from previous bundling attempts, such as Deutsche Bank’s “Moneyshelf”.

In 2002 Deutsche Bank started an immensely ambitious e-commerce project. The objective of the project by the name of „Moneyshelf“ was to establish a financial super market. The goal was to create a one stop shop for virtually any financial product a retail client could wish for – across any provider existing. The underlying idea was to provide off the shelf financial products from any makers and brands. The reasoning behind it was that consumers would also frequent supermarkets to conveniently buy various products across brands and manufacturers. A modern consumer would visit a single supermarket to purchase bread, sausages, apples, beverages, canned food and cleaning liquid. He or she would no longer go through the ordeal of visiting a bakery to buy bread, a butcher to shop for sausages, a local market to get some apples and then drop by yet another store to buy beverages and food before visiting the local drug store to buy cleaning liquid.

Creating a financial supermarket

In order to use such a financial supermarket the client was requested to deposit his access information to any other banking service with the Moneyshelf platform. Moneyshelf would then let the client consolidate and manage all of his or her accounts in one highly user-friendly frontend. In the background online banking interfaces programmed by Deutsche Bank developers would ensure the interoperability. Moneyshelf promised a quantum leap in transparency and price efficiency. A client who would have a securities account with bank A and be invested in mutual funds from fund provider B could then not only shop for a more cost-efficient securities account, but also a better performing and less costly mutual fund und would only be a mouse click away. All of this was paired with features such as personal financial planners which offered insights on the clients’ spending and financial behavior and a rich offering of financial information and possibilities of analysis.

Deutsche Bank ahead of times

Moneyshelf as it was envisioned by Deutsche Bank was offering the client a tremendously versatile platform to choose among a vast range of providers and products such as current and savings accounts, mutual funds, brokerage services, mortgages, even life insurances. Deutsche Bank sensed that clients would become more tech savvy and consider the threat to be very real that Deutsche Bank may soon be disintermediated as far as their retail segment was concerned. With the emergence of online brokers and their strong growth Deutsche Bank feared of getting skinned and decided to take the bull by the horns. Hence, should a client decide to do business with a different bank, then Deutsche Bank would make sure that it would at least get a share of those revenue streams bypassing them.

The bone of contention: depositing client data

In the end this business model failed big time. The other banks, especially the rather dominant German savings banks warned their clients that it would be a violation of their contractual obligations to deposit account access information with any third party, including Moneyshelf. The savings banks maintained that they would not only refuse any liability in case of fraud, but that they would reserve the right to cancel the banking relationship with the client altogether should he or she access the account via Moneyshelf. Moreover the marketing campaign for Moneyshelf which depicted procreating animals was not very appealing to a largely conservative German retail banking segment.

Bundling as the central value propostion

Yet, Deutsche Bank got something right: the topic of bundling. As much as Fintech is about unbundling of banking services, a convenience loving customer does not want to sign up with Fintech Firm A to buy DJI stocks, with Fintech company B to convert some FX and with Fintech enterprise C to set up a financial plan. The levels of user experience and thus user expectations have never been higher than today. Hence, the emancipated banking client of nowadays would expect all of these services offered by one single provider and being accessible via one user interface (UI). Banking platforms such as N26, Moven, Bankin’ and Simple prove that the theme of bundling is highly topical as they oftentimes put together the services of a range of Fintech firms and offer them seamlessly through one UI.

The sophisticated future of bundling

However, the future of bundling will be much more sophisticated than that. Clients will expect not only expect cost-efficient but dynamic bundles. For instance, whereas payment provider A may be ideal for one money transfer from country X to country Y, it maybe payment provider B for the next transaction. Clients will not care which contractual obligations the platform is tied to, but the customer will expect the most cost-efficient Fintech firm to take over the task at hand. The same goes for stock brokerage or financial planning. The client will rightly demand to execute via the most cost-efficient broker and to set-up the financial plan with that one Fintech firm he or she sees most suitable. It will be the task of the platform owner or “bundle”, to tap into the Fintech eco-system to always find the most suitable service provider. The bundler must to put together these services for the consumer seamlessly and in a highly transparent fashion.

The race for bundling is on

The race for the best bundler will be open to Fintech firms and incumbent banks alike. This time, however, banks will no longer have a head-start for two reasons: first, a range of highly professional financial data aggregators such as eWise exist nowadays which can provide the necessary services off-the-shelf. Secondly an overhaul of EU legislation will update the rights and responsibilities of account information service providers, permitting intermediaries to obtain the account access information from clients. This change in legislation will come into effect in 2018 and it will be the starter’s gun for a European bundlers’ race in financial services.

Dr. Patrick Schüffel, Professsor, Institute of Finance, Haute école de gestion, Fribourg Chemin du Musée 4, CH-1700 Fribourg, patrick.schueffel@hefr.ch, www.heg-fr.ch

Moneyshelf ad

Fintech will never die

fintech-will-never-die-cropped

On March 10th, 2000, the burst of the so called Dot-Com Bubble started. After nearly doubling within only one year and peaking at 5048, the NASDAQ index fell as much as 78% in the aftermath of that day. Clearly, estimates vary, but it is said that the astonishing sum of USD 1.7 trillion were lost in less than a year.

Shedding the “e-“ prefix and “.com” suffix

The vanishing assets were the most obvious and immediate consequences of this remarkable period. Yet, the burst of the Dot-Com Bubble had also other ramifications. Expressions, names and language changed rather abruptly. While the “e-“ prefix was widely adopted for products and firms before March 10th, companies were now shedding the “-e” attribute faster than an Alaskan Malamute its winter coat during springtime. The same happened to the “.com” suffix. All of sudden no firm wanted to be associated with eCommerce any longer; bricks and mortar became fashionable again. Even email turned into mail and – to make it distinguishable – to what was previously termed mail, postal mail became snail mail.

Absorbing Dot-Com technology

Yet, the eCommerce and Dot-Com technology did not disappear. On the contrary, the innovations made in the years leading up to the bubble burst prevailed. Web technologies have never been as pervasively applied as today. A Web sales channel or at least an information outlet has become a standard for most enterprises in the western world. Hence, Internet technology did not disappear with the burst of the Dot-Com Bubble. Rather than that, it was absorbed, transformed and adopted by the majority of firms and turned into a business standard.

After the burst of the Fintech bubble

The same will happen to Fintech. It is safe to say that we will see a Fintech bubble burst in the years to come. Turning into an outcast in the eyes of investors Fintech will then disappear as a label. However, a good share of the innovations brought forward by Fintech firms will then be absorbed by other players, such as by incumbent banks, insurers and software companies.

In 1996 Wesley Willis released his album “Rock ‘n’ Roll Will Never Die”. The Rock ‘n’ Roll that evolved in the United States during the late 1940s and early 1950s has ever since been absorbed, transformed and adopted by other musicians around the world. In that sense Rock ‘n’ Roll is truly immortal. The same will apply to Fintech.

Dr. Patrick Schüffel, Professsor, Institute of Finance, Haute école de gestion, Fribourg Chemin du Musée 4, CH-1700 Fribourg, patrick.schueffel@hefr.ch, www.heg-fr.ch

Is Your Banking Job Gone Soon?

BankingJobsGone

Fintech is steaming ahead at an incredible pace. What robots used to be for the automotive industry, algorithms have become to the banking industry.

Common wisdom had it that one’s job would be secure if one was well educated and kept up-to-date on the job. Now, however, we are increasingly facing a situation when even highly sophisticated occupations such as personal finance advisors as well as accountants and auditors will fall prey to digitalization.

The Future of Employment

In their 2013 study “The Future of Employment” Karl Benedikt Frey and Michael Osborne estimated the probability of computerization for 702 professions based on three factors: perception and manipulation tasks, creative intelligence tasks and social intelligence tasks.

Applied to Banking

Of those occupations examined by Frey and Osborne I have extracted those that I find relevant to the banking industry. The percentage figure displayed indicates the likelihood of that profession being computerized in “a decade or two”, i.e. between 2023 and 2033.

Occupation: Probability of Computerization

Sec., Commod., and Fin. Services Sales Agents: 1.6%
Financial Managers: 6.9%
Management Analysts: 13.0%
General and Operations Managers: 16.0%
Financial Analysts: 23.0%
Business Operations Specialists, All Other: 23.0%
Managers, All Other: 25.0%
Financial Specialists, All Other: 33.0%
Economists: 43.0%
Customer Service Representatives: 55.0%
Personal Financial Advisors: 58.0%
Administrative Services Managers: 73.0%
Loan Interviewers and Clerks: 92.0%
Accountants and Auditors: 94.0%
Credit Authorizers, Checkers, and Clerks: 97.0%
Tellers: 98.0%
Loan Officers: 98.0%
Credit Analysts: 98.0%
Brokerage Clerks: 98.0%
Bookkeeping, Accounting, and Auditing Clerks: 98.0%
New Accounts Clerks: 99.0%
Data Entry Keyers: 99.0%

Source: Frey, C. B., & Osborne, M. A. (2013). The future of employment. Oxford, UK: Oxford Martin Programme on Technology and Employment.

Dr. Patrick Schüffel, A.Dip.C., M.I.B., Dipl.-Kfm.
Professsor
Institute of Finance
Haute école de gestion Fribourg
Chemin du Musée 4
CH-1700 Fribourg
patrick.schueffel@hefr.ch, www.heg-fr.ch