An Industry Driven by Digital, Data and A.I.

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By FINTECH Books Contributor, Alpesh Doshi
Follow: @alpeshdoshi

In a time of low interest rates and volatile markets there are many existing challenges that are fuelling the need for change within the industry, for example business models reward AUM rather than performance, the industry does not deliver promised ‘Alpha’, and fund managers and private banks tend to be inefficient when it comes to investing in new market opportunities, rather preferring to stick to traditional investments.

The future will be an industry that is digital. The end-to-end management of investments will be completely automated, decisions will be driven by aggregated data, algorithms and risk models, and finally, the whole stack will be supported by the infamous blockchain technology.

For investors this change will offer a multitude of benefits:

1) Of their entire portfolio, complete visibility of asset performance, real-time risk calculations and detailed data on their assets.

2) Of assets using digital channels and real-time adjustment of portfolios.

3) Of active or passive investment strategies, diversification and easier regulatory reporting and analytics.

Wealth Management is going through a structural change; investors want a better return on the money, reduced fees, new market opportunities and more transparency and control. Transparency, Control, Management.