How Tech Is Revolutionizing The Business Of Investments

The investment business has entered the digital age; the ascendant field of financial technology or “fintech” is using computer technology to completely change the way we approach all areas of finance. Here, we discuss some of the ways burgeoning fintech is revolutionising personal investment.Tech Is Revolutionizing The Business Of Investments

Investing Young, Investing Less

Fintech companies are using smart algorithms and masses of data to allow them to advise their clients where to invest. This automated approach has lowered firms’ operating and management costs, and allowed them to target younger investors with significantly less capital.

It used to be that financial advisors would only work with older clients that had hundreds of thousands to invest. Now young people can work with fintech companies charging a much smaller fee and investing small amounts of money. Personal investing is becoming a young person’s game.

Making Connections

The success of social networks like Facebook and Twitter has inspired all kinds of specialised networks in different sectors, and finance is no different. Social trading mobile apps like eToro and ZuluTrade provide a platform for investors to network across the globe.

As well as acting as brokerage firms, these apps allow professional and amateur investors alike to follow each other and share trading tips in real time. Those with less financial expertise can use the app to copy the investments of more experienced and successful traders.

Smart Financial Assistants

Online investment advisor Moneyfarm hasĀ just purchasedĀ Ernest, a digital finance chatbot. Ernest is a personal financial advisor that uses artificial intelligence to help you manage your investments.

Ernest can answer your queries and also proactively offer advice and information. Ernest tracks your investment decisions and builds an understanding of your financial habits, allowing it to figure out how you can optimise your overall investment strategy.

Opening up Property Markets

Property has long been the obvious smart long-term investment for many people. But it has always required individuals to go through expensive agents in order to get information.

The advent of the internet has allowed prospective buyers to view properties directly and avoid wasting time on real estate that doesn’t interest them. This means that private investors can work in a kind of partnership with agents.

And social networks have made it a lot easier for people to connect with other potential property investors in order to make collaborative investments. This means younger investors and those with less funds can now get a stake in the property market.

Tech and Trustworthiness

The rise of fintech is helping to rebuild the financial industry’s reputation. Over the past decade, lack of trust for financial actors among members of the general public has become a serious issue.

But now, technologies have required investment and advisory firms to become more consumer focussed. Coupled with the new platform that tech provides for ordinary citizens to move into finance themselves, this is helping the bridge the gap between financeers and the general public and turn finance back into a trusted profession.