5 Smart technologies that will change the way you invest
Amongst concerns such as oil prices, political turmoil, economic slowdown and inflation, your approach to wealth creation may not just include the interest rates or returns a financial instrument has to offer, but also the many factors that can alter the desired outcome. As an individual, the investment landscape maybe an unchartered territory for you, but having a firm grasp over all these moving pieces that directly or indirectly affect your wealth is key to turning a profit.
Fortunately, with increasing digitisation in the financial sector and deeper integration of FinTech, today, you have a better chance of getting higher returns on your investment, despite the ever-changing variables. Be it advanced investing strategies or portfolio management, smart technological innovations can help you stay on top of your finances.
Here are 5 such modern-day technologies that can alter the investment landscape.
Artificial intelligence and machine learning
Both artificial intelligence and machine learning are terms that occasionally appear in common parlance, but it’s important to note that they serve precise functions. Analysts and investors look for accuracy, speed and efficiency – which is exactly what AI and ML deliver. Simply put, these two technologies together can progressively highlight patterns by processing streams of data and give you targeted, calculated results.
When applied to the financial market, AI and machine learning can help you tailor your investment portfolio to your goals by predicting the direction of the market or an instrument. In a world where data is king, AI thrives and progressively evolves with the help of machine learning to give you an edge, as an investor.
Smartphone applications are a dime-a-dozen, but in the investment arena, they serve a notable purpose. Today, with the apps available to you, you can start trading and invest in the stock market from your phone while you’re on the way to the office, and get insights on market performance that help you make a smart investment decision. Even if you wish to invest in safer instruments such as a fixed deposit from a highly-rated NBFC, you can do so in just a few taps. The ability to access this convenience at your fingertips with no compromise in quality is proof that technology has truly revolutionised the investment experience in the past decade.
Online crowdfunding platforms
A shift to a digital world has given rise to funding platforms that have made it possible for private investors all over the world to invest in opportunities that weren’t easily accessible before. This allows you to diversify your portfolio with other asset classes that go beyond the usual stocks or bonds. This is a highly-efficient tool for seasoned investors who pride themselves on identifying profitable industries, as it gives them access to opportunities from the world over.
Although some consider robo-advisors to be a fairly dated innovation, it’s important to note that in recent years they have evolved many times over. Today, they have the ability to offer superlative financial advice as they are driven by algorithms. Robo-advisors have grown from being a simple interactive programme that helps with CRM efforts to a virtual assistant of sorts that can help you identify potentially profitable investments, manage your portfolio, plan for retirement and undertake tax-loss harvesting. For young investors who are looking for a simple and reliable way to invest their money with minimal effort and low consultancy costs, robo-advisors serve as the perfect starting point.
Blockchain was initially designed to serve as the base code for cryptocurrency but has evolved into a richer tool since then. Today, with the help of Blockchain, financial transactions, especially when investing or trading, can go through a digital middleman. The upside is that Blockchain promises speed, accuracy, reduced settlement times, cheaper commission rates and assistance with decision making, thereby enhancing the investment experience.
These 5 FinTech innovations are slowly but steadily revolutionising the way you invest by offering ample convenience and accuracy at your fingertips. To become an early adopter, start with something as simple as using your smartphone to invest. This helps you leverage the safety protocols in place and familiarise yourself with the tools available to you. Take the first step towards smart investing today and lay a strong foundation for your future.