By FINTECH Books Contributor, Hien Pham Thu
The future form of pension funds will be private labelled retail retirement funds owned by single individuals as retirement wealth will become autonomous. For retail investors wealth starts with restraining consumption. As the leeway for investment budget is limited, spending behavior highly affects wealth level of tomorrow. As retirement future is far away, the necessity is not set in the mindset at young age. The future of retail wealth management is to incorporate future required income into present lifestyle. Our application mirrors present spending into possible investment and accumulative wealth.
By applying machine learning algorithm present spending behavior and lifestyle characteristics are broadcast into future needs which will be translated into present’s investment in order to maintain same lifestyle in the long-term future. The algorithm exposes excessive and unnecessary spending pattern, suggests income aligned spending and will reward retail investors with wealth-coins for discipline conduct. For each successful transfer of spending into investment a wealth-coin will be issued to the investor.
These coins can be redeemed for investment consultancy, investment courses or robo-wealth-adviser. Equipped with a sophisticated data engine and broad macroeconomic variables the robo-wealth-adviser will be able to suggest tailored investment strategies and market opportunities which fit investor’s monetary budget. Based on available data set the robo-wealth-adviser will create a financial plan as well as investment schedule.
The more coins the stringent retail investors are collecting, the more features he or she can add to the wealth-bot in exchange. The sophistication of the robo-wealth-advisers therefore depend on the number of wealth-coin the retail investor can afford. However, this allows retail investors to access services currently available only for high net worth clients by changing their spending behavior. As all of us know that savings alone will not secure our retirement but an experience investment advisor will do.