The concept when some artificial intelligence, knowing a person’s financial situation, helps him
Moreover, some startups in the West have somethingThis has already been accomplished, first of all, thanks to the development of the service of robot-rendering, in particular - the use of artificial intelligence. But this is not the whole list of innovations. What specific technologies are pushing the investment industry up, making investments even more accessible and simple for ordinary people? There are five trends among them.
Robot Editing
This is the most popular technological trend ininvestment, according to Deloitte. According to forecasts, as early as 2020, under the control of services with robot edging will be up to $ 3.7 trillion, and by 2025 the figure will grow to $ 16 trillion.
Most often, under roboedvayzingom (from English. robo-advising (“Hightech”) is considered to be an online service, which, based on the investor’s investment goals, the amount of savings and the time required to invest money, automatically makes an investment portfolio.
How is robo-advising better than a human - for example,financial advisor? Firstly, depending on the level of sophistication of a robotic advisor, it can make a decision on an investment instrument much faster than a human – up to a hundredth of a second versus three minutes. Secondly, when analyzing, the robot is able to evaluate entire arrays of data and news on a particular instrument, which is why investment advice should be of much better quality.
In the USA, the largest private equity market,Betterment and Wealthfront are the most popular services for robo-Editing. The largest American brokers, of course, also caught up with this trend and, in parallel with the classic services, launched a robot service.
Artificial Intelligence
Although it feels likerobots and AI belong to the same trend, in practice it is not. Most often, robot managers use complex, but quite understandable algorithms: there is no machine learning. Even if participation in the AI system is mentioned, it is often not more than a word for marketing purposes.
However, there are robotic advisers who use AI. An example of such a project is the German startup Fincite.
Another area where AI is used inin the investment sphere, these are ETFs (roughly speaking, mutual funds). This does not mean ETFs that invest in companies working in the field of AI, of which there are, if not a hundred, then at least fifty in the States. We are talking about ETFs that are controlled by artificial intelligence; they already really exist. An example is the AI Powered Equity ETF, which invests in a variety of US stocks and real estate exchange-traded funds.
In Russia, the ETF market is still in its infancy. To meet the Russian foundation, managed by artificial intelligence, is not yet possible.
Blockchain
The hype around blockchain has given the market new investment instruments such as ICOs or tokens. This is a real breakthrough, but we are talking about technology.
The openness and decentralization that they bringBlockchain technologies make the investment business as transparent and honest as possible in relation to private investors. This may not be so true in the West, where financial regulators keep the same brokers under a tight rein. But it is very important for Russia and the CIS as a whole.
Here the market is flooded with various fraudulentschemes and companies, including the so-called kitchen. In financial jargon, this means brokers who do not bring customers to the market and often manipulate prices, ruining trusting investors.
In recent years, dozens of investmentblockchain-based platforms, many of which raised money for development through ICO. However, after the HYIP was asleep, units continue to develop the product. Among the few such startups is the Roobee platform.
Despite the rush around the blockchain,it seemed to be asleep, technologies are increasingly being used not only in investments, but also in the whole sphere of fintech. For example, six projects related to the crypt hit the last Forbes ranking of 50 world FINTECH startups.
Social investment
Adding to technology trends that changeThe social investment industry may seem controversial. In fact, most often under social investments they consider investing money and other resources in order to achieve a positive social effect. For example, investing in African development programs.
However, in the context of this review is meantsomething else. Namely, auto-copy services (auto-follow), when any person can “connect” their investment account to the trading of another person. This is a kind of trust management service, only adapted to the social networks that have become familiar.
Everything you need to do for a privateinvestor, is to register and select a manager, a trader, based on the results of managing his investment portfolio. Money can be trusted as one, or ten or more managers. By the way, if a person feels that he does a good job of managing money on the stock exchange, the functionality of services allows him to automatically become a manager and earn money from other social network members.
Among foreign similar services one can name eToro (by the way, Sberbank is one of the co-founders) or ZuluTrade.
Mobile investment
This trend cannot be ignored by talking abouthow the investment market is changing. In the United States, multi-billion dollar companies (in terms of their value) have emerged that allow you to manage your money, primarily through your mobile phone. These include Robinhood, Acorns or Stash.
The mobile application, of course, is not the main feature,thanks to which they achieved success. However, the ability to manage your savings from your phone is something that millennials and millennials, who will account for half of consumer demand by 2025, value, according to Nielsen.
Another study, this time from Accenture, showedthat 63% (2/3) of representatives of generation Y, millennials, want to manage their money and receive recommendations on their investment portfolio specifically through their mobile phone. It is impossible not to take into account this trend as a market participant in order to stay afloat.
Technology changes the rules of the game evenconservative and from the boring market, as an investment. Innovations simplify everything, robots allow you to turn your head less often while managing your money.