How Modern Technology is Revolutionizing Investment Management
|Technology is always growing and evolving in every aspect of our lives – and investment management is no exception.
New forms of technology allow for better visibility, the formation of sophisticated algorithms, easier accessibility to online investment opportunities and the global market, and so much more. Financial consultants are able to take advantage of these technological advances and apply them to how they make investment decisions.
Let’s take a closer look at how modern technology is revolutionizing investment management.
Easy Market Accessibility
Decades ago, those seeking to invest sought out a trusted advisor or consultant to handle the matter for them since the access barriers were so high. Today, everyone can visit any number of websites or apps and invest money. You can buy and sell stocks and even take part in new avenues for investment, such as digital assets and cryptocurrencies.
This level of market accessibility has its pros and cons. For instance, it makes it easier for skilled financial consultants and investment managers to diversify a client’s portfolio with the click of a button. Yet, at the same time, it is a gateway for amateur investors to make their own investments — regardless of their investment knowledge. This can be dangerous.
Increased Visibility
Thanks to the internet being accessed all around the world, news of the global markets and opportunities can be found in an instant. And the volume of available information is vast.
For investment managers, this means increased visibility. News sources, financial outlets, social media, live streams, and more give advisors everything they need to make educated, clear investment choices. In other words, the answer is always right at their fingertips.
More information on markets and more accessible investment opportunities leads to more chances for success.
Cloud Technology
Just as the internet has increased accessibility to markets for people all around the globe, cloud technology has allowed investment managers at firms to access your data and handle your portfolio from nearly anywhere, too.
Sometimes investments need to be addressed right away. This could be a situation in which a buy-in right away is a must or one in which a quick getaway can be a chance to save your finances. These are only two of many scenarios that come up. And, since investments don’t take vacations, they can arise at any time.
Using cloud technology, financial consultants have the capability to handle investment management whenever it is needed, whenever it is needed.
Artificial Intelligence
One of the newest players on the field is making a huge impact. Investment managers are no longer needing to rely on their own judgment and capabilities. Instead, they can take advantage of artificial intelligence (AI) and have it sort through volumes upon volumes of data, pulling out trends, finding patterns, analyzing numbers, and creating algorithms.
AI is capable of using all types of sources and putting dots together that the human eye can’t see. It has even been integrated into some wealth management companies with the ability to make predictions in real-time.
Some are thrilled to see what AI can do and how it can change the future. Others, however, are not interested in putting their trust – and financial future – in the hands of a computerized machine.
Technology and the Future of Investment Management
There are so many ways in which technology has made its way into investment management already. And, because we are always evolving, there are sure to be even more changes as we move into the future.
Financial consultants and wealth management firms are finding ways to continue to incorporate this technology.
The Investment Counsel Company is ranked as one of the Top 100 Independent Financial Advisors, offering wealth management services to those with $1,000,000 or more in investable assets.