Financial organizations have always been at the forefront of adopting, testing and disseminating the latest driving technology. Always searching for the latest way to increase transaction effectiveness and improve decision accuracy, financial analysts have continuously sought out the latest tools to attain competitive advantage.
During the water mechanization wave (1770-1820), banks were among the first organizations of penny post which partially relied on cheaper transportation costs afforded by the build out of canals throughout England. Most recently, we witnessed during the 1970s and 1980s the emergence of a global financial trading system allowing instant currency and financial movements which at the core was built on the back of microchips. The neurotechnology wave will be no different.
With instantaneous information at their fingertips, information or the ability to analyze and act on it is no longer the competitive differentiator it was for financial traders. In fact, information overload is increasing stress levels and impacting the emotional effectiveness of today's financial traders. In a brilliant paper written in 2002 by Lo and Repin's -- The psychophysiology of real-time financial risk processing -- they analyze this very point:
"A longstanding controversy in economics and finance is whether financial markets are governed by rational forces or by emotional responses. We study the importance of emotion in the decision-making process of professional securities traders by measuring their physiological characteristics (e.g., skin conductance, blood volume pulse, etc.) during live trading sessions while simultaneously capturing real-time prices from which market events can be detected."
As I've written previously in Forecasting happiness, Finance with feelings, and
Anthroscopes to improve team productivity, emerging neurotechnologies will increasingly be used by financial institutions to attain neurocompetitive advantage.
While some continue to question the validity of neuromarketing, interest in neurofinance is quickly gaining attention. Today companies like HeartMath and Quantum Intech are focused on providing biofeedback management techniques, while those on the cutting edge are seeking out the nexus of neuroscience and the financial markets: real-time neurofeedback.
Wouldn't you want the best tools humanity could develop if you had billions of dollars on the line?