Digital transformation and innovations have made every industry more accessible, transparent, and digital-savvy than ever before. The finance sector is also no exception to this digital wave. Financial technology (FinTech) has transformed how you invest money, manage your portfolios and get advice from financial advisors.
Reducing the friction of investing or making it easier for you to invest your money has been one of the major technology trends in the FinTech space over the last few years. Various innovations are changing how you can access investment opportunities and financial services.
1. Robo-Advisors
Robo-advisors are automated online wealth management services that Robo-advisor companies provide. These organizations typically offer a low-cost investment service without requiring you to meet with a human financial advisor.
While Robo-advisors are not new, many organizations are leveraging digital technologies to make their services more efficient and user-friendly. These organizations leverage artificial intelligence (AI) and machine learning to offer advice and investment options.
Their digital platforms can analyze your financial situation and offer customized investment advice at a fraction of the cost of traditional financial advisors. You can access Robo-advisor companies via digital platforms such as mobile apps or internet websites.
They usually require a sign-up and account setup process that takes only a few minutes. Once the account is set up, you can choose the amount of money you’d like to invest and select an investment option.
2. Blockchain Technology
Blockchain technology is one of the most significant technological innovations of the past decade. This decentralized ledger technology allows you to exchange assets and make payments instantly without going through a financial institution.
This technology is revolutionizing the finance and investment industry by letting you know when to buy and sell assets like stocks, bonds, and currencies in the Emini futures trading signals without a third party. Blockchain technology allows you to make peer-to-peer payments without going through banks or other financial institutions.
You can also use this decentralized network to store information securely. When information is stored on a blockchain network, it is secured using encryption technology. It makes it nearly impossible to access the information without the right authorization.
This technology is particularly important for investors investing their money in cryptocurrencies. Blockchain technology allows you to invest in cryptocurrencies without going through a central authority.
3. Smart Portfolio Management
With the rise of digital investment platforms, investors have made their portfolios of stocks, mutual funds, and ETFs with a few clicks of the mouse. The ease of this process is one of the many advantages of online investing services. But as more investors use DIY (do-it-yourself) investment platforms, issues around portfolio management have become apparent.
Investors don’t have the time to manually track their portfolios’ performance and often aren’t aware of when to rebalance their investments to keep them in line with their risk and return strategies. The emergence of portfolio management technology has made it easier for investors to track and monitor their investment portfolios.
This technology can automatically track the performance of your investment portfolio and flag any issues you need to address. Some portfolio monitoring platforms can also help you keep your investment strategy on track by recommending when to rebalance your portfolio based on your investment goals and risk tolerance.
4. Voice-Based Finance and Investment Advice
Many voice-controlled digital assistants like Amazon Alexa, Google Assistant and Apple’s Siri have become common household devices. This evolution of voice technology has led to voice-based investments and financial advice; some fintech companies have started integrating their investment apps and services with voice-based virtual assistants.
It allows you to access investment information, portfolio management and other financial services via voice commands. These voice-based investment services are particularly valuable for people with disabilities who can’t use traditional investment services or apps easily.
Voice-based investment services also give you advice and information on investment products and services even when you’re on the go. It makes it easier to stay on top of your financial situation and make informed investment decisions anytime.
The investment sector has been revolutionized by technology over the last few years. Digital transformation has made investment more accessible and transparent. The various technological innovations have made investing easier to access and more transparent.
Technology has simplified investing in financial assets, be it Robo-advisors, smart portfolio management or voice-based investment advice.
