bankingciooutlook

Technologies Reshaping Asset Management

By Banking CIO Outlook | Wednesday, February 06, 2019

Wealth Management

Asset management has deep roots in the financial trading industry. With the ever-changing technology, the asset management firms are also bound to evolve. New age technologies especially artificial intelligence (AI), big data, and blockchain have already transformed the ways in which industries operate. Data analytics allowed industries to understand the needs and demands of the vertical more precisely than before. Big data powered analysis of huge datasets giving better insights into trading preferences of investors and risks associated with various types of investments.

Big Data

Effective delivery of asset management services—mutual funds, equity, and fixed asset—require proper analysis of large volume of data. Big data made its way into decision-making processes as it can analyze huge chunks of market data and evaluate risk and opportunities associated with different assets. Precise analysis of historical data enables asset managers to identify peak heading and diving downwards assets. Advance knowledge of market trajectory facilitates in minimizing the risk and maximizing profit probabilities. Big data-driven asset management software has already found vast acceptance in the industry.

Artificial Intelligence

Taking a step ahead of big data, AI supports descriptive market insights and recommends prescriptive actions to maximize return on investment. For predictions, technology evaluates various scores of companies such as environmental, social and governance which acts as indicators of their long-term sustainability. Robo-advisors and AI applications have been developed to assist traders with investments without human intervention. Although, AI advisors are not completely reliable but certainly improve the customer experience for asset management firms and also reduce cost. Developments are being made in the technology to address the high complexity of investment problems in future and achieve complete reliability.

Check out: Top Wealth Management Technology Solution Providers (1787fpBucket BlissLifeYieldOptimal Asset Management).

Blockchain

This nascent technology withholds much in it for the sector. Blockchain’s ability to store data universally synchronized and the decentralized system makes it the center of all financial advancements. Asset management, securing client information, maintaining privacy, and compliance with regulations can easily be achieved through blockchain. Sharding and swarming concepts can speed up the trading transactions or liquidate assets such as stocks and commodities, even without compromising with security.   

Although, all the mentioned technologies are in their development phase and very less is known about them but they are certain to drive the trading concepts and methods to new milestones.

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