Why emerging technology is positioned to pull through the economic downturn

Image for post
Image for post

By Vanessa Malone

The COVID-19 pandemic has rapidly escalated around the globe, creating economic impacts on top of health impacts that everyone is attempting to navigate.

The stock market is now deep into a bear market. The Dow Jones Industrial Average experienced the biggest one-day drop since 1987, falling nearly 10% last Thursday. Investors are working to mitigate risk and protect their investment capital.

The Horizon team is seeing this firsthand. Take bonds, for example, which are considered a good way to diversify portfolios as they are less volatile in comparison to stocks. Recently, we’ve seen a large uptick in the Ethereum-based bond marketplace Horizon’s compliance and trading technology is powering for A-Rated Brazilian Bank, Piemonte Holding.

Image for post
Image for post
Piemonte Smart Bond as of 3.19.20

During these unpredictable times, people often wonder if emerging technologies such as blockchain, AI, and other fintech and the companies behind them will survive the economic downturn.

Interestingly enough, fintech has done it before. Many large tech companies were born or re-born out of the 2008 recession including household names like Amazon, Netflix, and Groupon; all of which made decisions and technology enhancements to thrive despite the economy.

Here’s a few reasons why we believe emerging technology is positioned to pull through an economic downturn again:

High ability to adapt

In addition, companies like Horizon with high-tech, adaptable solutions and Agile programming methodology are not required to meet customers face to face and can stay in sync virtually.

Inefficiencies are brought to the surface

In an economic downturn, the benefits of technological enhancements become glaring as companies attempt to cut costs and increase efficiency. This is when firms turn to innovative fintech tools that streamline traditional processes for both the firms and their users. Maximizing value becomes drastically more important, and this is where fintech providers have a lot to contribute.

In a position to innovate

Think of the Fintech, Blockchain, Artificial Intelligence, Internet of Things and other technologies that are currently being used to assist in the Coronavirus crisis for instance. China, for example, has turned to blockchain technology to manage medical data, track supply of virus prevention materials and consult the public. Blockchain technologies can also help add transparency and immutability to reports.

Separating from the pack

In an economic downturn, only serious companies with real solutions solving real problems will shine. These are the companies that will ultimately survive and receive funding. In turn, these companies will be able to get a “head start” in the market.

In conclusion

About Horizon

Disclaimer: http://ohg.ie/disclaim

Written by

Horizon offers a suite of integrated securities software applications for compliant issuance through secondary trading of electronic securities.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store