Fintech is the term used for referring to industries and companies which involve the use of technology in the finance space. The Investment sector, being a very important aspect of the finance industry, is also increasingly seeing the use of new technologies for improving the efficiency and productivity of investments.
Let’s see if technology can actually do any benefit to investment management, if yes, then how.
In the recent years, a number of projects utilizing the latest technologies such as blockchain, Artificial Intelligence (AI), Machine learning (ML), IoT, and robo-advisory have appeared in the investment space. Their effectiveness, however, lies in the results or improved ROI, which we are seeing now.
For instance, the use of AI and ML for investment management has proven to be quite a success in terms of providing better customer experience through personalised investment advice and services. This has further resulted in reduced cost and improved returns of AI-based portfolio management products. A number of banks worldwide have started using advanced technologies such as AI and big data for analyzing and managing risks in their investment services. At the same time, cloud, big data, and machine learning are revolutionizing payments, insurance and other related industries.
Robo-advisory involves the use of robots for detailed analysis of investor portfolio and for improving the way portfolio services are delivered.
Another emerging technology which has shown the potential to make investments more profitable is the blockchain. Blockchain involves the use of a public, distributed, decentralized network for transferring and verifying digital data and assets. The transactions in a blockchain network are stored in an encrypted, immutable ledger. Among many benefits of blockchain, those particular to the investment sector are high security, reliability, faster speed, and lower cost.
One real-world example of the use of blockchain tech for the growth of the investment industry is the HeyBitcoin project. Hey Bitcoin is an unprecedented system which utilizes the blockchain technology for developing a customized algorithm for analyzing the performance of top traders and then presenting the same to potential investors, enabling them to filter the best traders according to their risk level and profitability measure.
Wondering how the HeyBitcoin platform benefits investors or how it improves the way investments are made? Here’s how.
As of today, there are three main parties in an investment process - the investor, the dealer/broker, and the institution. An investor who wants to make an investment in any products, equity, stocks or debt, has to get in touch with either the company or a dealer. In most cases, the preferred choice would be a dealer because investors do not usually have good enough knowledge of the market or which product is best for investment, something with which dealers can assist.
Now, the problem is there are not a lot of reliable dealers whom you can trust with your portfolios. Also, the ones you can trust charge a huge commission for their service, leaving you with not a lot of profit/returns.
The HeyBitcoin system provides a technology-driven solution which not only makes it easy for investors to find and connect with verified agents but also it allows investors to find cost-effective agents based on their risk and profitability ratio.