The Financial industry IS High Tech

The financial industry has become quite high technology. The old days of banking are long gone.  Does anyone remember the 3-6-3 rule of banking?  Pay your depositors 3% interest, charge 6% for loans and be on the golf course by 3 pm.  The financial industry is a hungry consumer of high technology in order to manage their business.

Number crunching of massive amounts of data is a requirement in the financial industry today.  Complex formulas and modeling on large scale computing engines are no longer foreign to people managing capital.  Complex equations and modeling are not unique to the scientific community.  High performance technical computing (HPC) is being used for financial management.

A financial institution will crunch lots of numbers to determine their opening position when trading begins each day.  When the market closes trading for the day, those massive computes begin again and crunch numbers throughout the night looking for the advantage via trend, averages, models, derivatives, etc.  The financial industry has leveraged technology to the point that this industry is effectively competing and hiring technology college graduates.

Simple financial management has been replace by everything from sub-prime mortgages, day trading, hedge funds, disaster bonds to mortality bonds.  Mortality bonds are a perfect example of how the industry constantly looks for creative ways to provide a return on an investment.  The finance industry has taken a page from every insurance company actuary.  Disaster bonds are hedging against having to payout for natural disasters.

High Performance Technical computing has become a competitive weapon for the financial industry.

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