Technology In Investment Management - Friend Or Foe

INSUBCONTINENT EXCLUSIVE:
It's just one way in which fintech is changing the face of the financial industry
Fintech - the technological innovation in the design and delivery of financial services and products - is revolutionising customer
expectations
Emerging technologies such as Artificial Intelligence (AI), big data and analytics, blockchain, cloud, Internet of Things (IoT), and
robotics are disrupting traditional finance.AI and machine-learning are transforming customer experience with personalised service and
improvements in back-office efficiencies
Banks use big data and analytics in their fraud and risk management, and regulatory compliance
IoT is revolutionising insurance
But its growth is conservative in comparison to big data, cloud and machine learning, used in payments and alternative lending
Big data and machine learning are spotting trends and providing better investment insight
Robots are venturing into investment and changing how wealth advisory is delivered.The effect of machines on investment management
professionals is a pressing question.Digital and emerging technologies will have profound implications in the field of finance, but they are
still nascent
Machines still require human direction to carry out tasks
Robo-advisors cannot operate independently of their human counterparts because their algorithms require a longer learning curve
Blockchain may redefine how financial institutions operate but it is not yet mature and will need to overcome hurdles if a sustainable
business model with regulatory approval is to be achieved
AI does improve customer service but only in unison with human professionals.The real challenge is finding the right talent pool to
complement the agility of the technologies
Investment management firms must compete with other industries using disruptive technologies to attract the best people
Investment teams and technical teams will need to be integrated to create checks and balances on the models and processes
Proper integration is a counter to the potential lack of transparency and interpretability in the decision-making in these models.Fintech's
prominence is shaping the investment industry's evolution
CFA Institute is engaging with regulators and policymakers to explore ways to support fintech's investor protection standards
To succeed in the new-age investment management industry bearing down on them, advisors need new skills and training in their core domain,
and importantly in soft skills
A study found that organisations retooling for the future are instilling cultures of ethical decision making, to complement specialised
financial analysis, and sophisticated IT skills
firms harness fintech capabilities to survive in an era of low latency and algorithmic, high-frequency trading
Technology will enhance advisors and investors will seek out institutions employing the right human-machine mix
Increased competition in the market will reduce fees and improve quality of service for investors
Technology will create new business models and revenue streams for financial institutions
The investment industry and its customers can both be winners when the blend is in equilibrium.CFA institute bears the responsibility of the
accuracy and completeness of the above article.Disclaimer: This is an advertorial and TheIndianSubcontinent is not responsible for the
accuracy and completeness of the same.Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on
TheIndianSubcontinent.com/elections
Like us on Facebook or follow us on Twitter and Instagram for updates from each of the 543 parliamentary seats for the 2019 Indian general
elections.