How Technology Shapes Investment Management

Today, technology is one of the driving forces towards the skyrocketing progress of investment management. For investment management firms, this is even a bigger leap because of its long-term effect on consumer behavior. Private investors, notable advisors like Brian Gaister, and institutions aren’t only going to benefit from automation—their investing ethics may also change.

How did technology help investment managers?

In their published document, Investment Management Outlook for 2017, Deloitte identified four types of technology that help clients and firms like Brian Gaister’s Pennington and Partners Co:

1. Artificial intelligence in machines. Globally-recognized investment management companies are now using artificial intelligence together with big data analytics to: generate alpha by providing analysis for investment selection and improve cost-effectiveness by giving leverage to pricey analyst resources.

2. Blockchain. Blockchain is a software program founded by Peter Smith and Nic Cary. It’s a system that manages global transactions from over 140 countries and is used by investors from Wall Street and Silicon Valley. Blockchain has real time tracking data available for users. It’s valued by the investment management industry for its convenience and cost-effectiveness. Also, it has tools for software developers. Click here Brian Gaister

3. Robotic process automation. Investment managements who adopt unique robotic process automation can streamline their front and back-office transactions. Critical tasks that are usually operated manually are now made easier by RPA. This saves company time and adds more productivity to the high-priority tasks.

4. Robotic advisers. Are humans going to be finally taken over by robots? Seems like it, but human advisers shouldn’t be worried. Robotic advisers are only used to automate portfolio management advice, especially with large corporations. Nonetheless, they are a huge help in improving fiduciary standards between firms and clients. If their computing power can be improved, they will be more suitable for retail and institutional clients.

Technology shaping consumer behavior and ethics in the industry

Both clients and firms are being shaped by technology in terms of their investing choices and investing ethics. CBNC surveyed Americans and found that more than half trust financial services today. This is mainly because technological advancements give clients confidence due to speedy transaction processes and automated services.

In the investment management firms and financial advisors’ part, the ethics center on whether they are willing to prioritize their clients’ interests before their own. Technology helps stabilize this fiduciary standard through robotic advisers which give unbiased advice to clients.

Nonetheless, if you want the best of both worlds, look for well-known investment advisors and firms who have a wide range of global experiences.

For example, on his website, the Brian Gaister bio states that he’s a multi-family office owner. He can assist clients with their complex financial issues since he’s well-versed in solving the complicated financial situations of wealthy families and individuals. The Brian Gaister GooglePlus link is indicated on his website and the Brian Gaister Twitter account username is @gaister_brian_33_.

So far, the investment management industry this year has seen a lot of change, progress, and opportunities. As what Deloitte foresaw in their outlook, investment management firms who were able to incorporate and implement those three factors in their governance policies were also able to surpass their competitors. Firms who were also keeping up with regulatory changes also delivered their services effectively. Meanwhile, firms were more likely to have executed their goals that helped them foresee demographic shifts with the help of technology.