Finclusion
  • News
  • Explained
  • Fact Check
  • Inclusion
  • Blog
No Result
View All Result
Paytm
  • News
  • Explained
  • Fact Check
  • Inclusion
  • Blog
No Result
View All Result
Finclusion
No Result
View All Result
investment technology

The Soaring Growth Of Investment Technology

March 22, 2023
in Fintech
397 25
0
Share on FacebookShare on Twitter

Technological advantages have paved the way for significant global societal, economic and cultural changes. A sector that has benefited tremendously from the advancement of technology is the financial industry. Digital platforms where traditional financial advisors have been replaced by algorithms and software applications have made economic planning a far more personalised experience.

This marriage of technology and finance is referred to as fintech. And when these tools are routed to improve the performance and scope of investments, it is known as investment technology or invest tech.

You might also like

fintech funding

Early Signs of Recovery: Fintech Funding in India Surpasses $1.2 Billion in Q1 2023

May 29, 2023
npci status, upi payment

NPCI International and UK Fintech Collaboration: Taking UPI to the Global Stage

May 29, 2023

What is investment technology?

Investment technology leverages consumer and business data as well as various technologies to support the investor ecosystem. This can range from using technology to handle basic investment plans like pensions to more complex wealth management strategies

Some of the areas that investment technology touches upon are automation of investments, fund allocation strategies, financial decision analytics, monitoring of investments and wealth generation.

How investment technology works

Investment technology involves two primary building blocks: big data and artificial intelligence (AI). While big data enables the identification of financial patterns and relevant information, AI allows the application of this data for targeted results.

One such application of investment technology is robo-advisors. Robo-advisors are investment tools that offer automated solutions to a client’s investment needs. Robo-advisors use data from clients, markets and businesses to create customised plans that are free from human biases and focus on individual investment needs.

The numbers also support a growing interest in investment technology over the last few years. Data shows that in 2018, funding towards investment technology endeavours touched $2.8 billion, recording a 47 per cent rise in compound annual growth rate from 2008.

Benefits of investment technology

Investment technology has seen soaring growth among companies and investors due to its many benefits. Some of them are listed below:

1. Accessibility:

Investment technology offers better access to financial services among consumers. Thanks to rapidly increasing digitalisation, these services are more inclusive, catering to seasoned and new investors alike. In addition to providing access to a broader range of investment options, they also act as tools of financial literacy that are available 24*7.

2. Better diversification

Investment technology hinges on accumulating and appropriately disseminating data to meet personalised investment goals. Using tools such as Big Data and AI, investment technology diversifies services and products of the financial sector efficiently.

3. Reduced human bias

Investment technology tools have reduced the finance sector’s dependency on human capital. Tools such as apps to monitor your stocks or more comprehensive setups such as robo-advisors reduce the amount of human intervention. Therefore, customers are not curtailed by factors such as time limitations, efficiency gaps and investor biases. A more automated system would mean lesser emotionally-charged investment choices.

4. Better efficiency

In addition to the abovementioned factors, investment technology can be a cost-effective option for investors and businesses. A trading app that monitors your funds constantly to provide tailored advice is likely to be cheaper than engaging a traditional financial advisor.

5. Security

With the tremendous growth in cyber and data security, investment technology offers a more holistic and efficient security framework for finances compared to its traditional counterparts.

The rise of digitisation and continued technological advancements promises the scope of innovation in financial planning. This is being achieved through investment technology products and services. As a significant arm of the fintech ecosystem, investment technology offers a simplified and user-oriented approach to investments using tools that benefit both companies and consumers.

Tags: investment technology

Related Stories

fintech funding

Early Signs of Recovery: Fintech Funding in India Surpasses $1.2 Billion in Q1 2023

by Finclusion
May 29, 2023
0

Fintech became the leading industry in the first quarter of 2023, accounting for about ~45% or $1.2 billion of the...

npci status, upi payment

NPCI International and UK Fintech Collaboration: Taking UPI to the Global Stage

by Finclusion
May 29, 2023
0

NPCI International (NIPL), the global division of the National Payments Corporation of India (NPCI), has joined forces with PPRO, a...

The Tata Story — A Salt to Software Conglomerate

Record-breaking Rs 1.37 Trillion in Credit Card Expenditures Witnessed in March

by Finclusion
April 21, 2023
0

Are consumers' spending habits changing the financial landscape? The latest data from the Reserve Bank of India (RBI) shows that...

The Tata Story — A Salt to Software Conglomerate

AADHAAR Brings down KYC Costs from ₹700 to ₹3 – Nirmala Sitharaman

by Finclusion
April 24, 2023
0

On Apr 15, 2023, Finance Minister Nirmala Sitharaman delivered the keynote address in a seminar, “India's Digital Public Infrastructure -...

Next Post
how to diversify your portfolio

How to Diversify Your Portfolio

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finclusion

Quick Links

  • About Us

Follow Us

No Result
View All Result
  • News
  • Explained
  • Fact Check
  • Inclusion
  • Blog

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
Go to mobile version