Role of Technology in Investment Industries

Technology has always been regarded as an enabler for business transformation. It is quickly
becoming a disruptor of the traditional business models, hence cannot be overlooked. The
investment industry is dynamic and sensitive to delivery and turnaround times for data capture,
data processing, information sharing, and storage. One of the advantages that a firm in the
investment industry can have is speed. Whether on getting research to the client or getting an
order into the market quicker than the competition. This is where technology comes into play
and provides a competitive advantage.

An investment industry can perform without Technology; however, there would be dramatic
differences and inefficiencies. Technology has become a cornerstone of the investment
industry. It provides the means to deliver data to investors, potential and existing clients, as
well as to the public. Technology provides automated systems that facilitate complex
calculations to be performed at ease, and providing consolidated information at a glance.
Investment information can be varied since the variables being considered are many. A system
such as Bloomberg do such analysis and provides the team with easy to use and already
computed values.

After this data has been computed, data visualization follows suit. As stated, investment data is
complex to look at. Data visualization, while leveraged by augmented or virtual reality can make
it a lot easier to spot trends and make sense out of a large amount of information.
While still at this, big data and data science has quickly taken shape and is already in use in
most firms. This entails analyzing data, so at to get insights from it, which can then be deployed
to enhance operations, launch new products or gain competitive advantage. Such analytics can
provide useful information to identify, assess and record opportunities, as well as advise on
options, risk and do a cost-benefit analysis. Technology provides the means to achieve this, as
well as enhance data and information management, for easier retrieval and reference.

Artificial Intelligence and Automation are also having a significant impact on the investment
world that uses algorithmic decision making. These solutions work hand in hand with data
analytics and visualization. AI and machine learning can leverage on big data and visualization
to discover market entry and exit signals, as well as have robo-advisors. While it can be argued
out that putting 100% reliance on technology does not seem realistic, a human security check
can act as a safety mechanism to counter-check the suggestions provided by artificial
intelligence.

A typical investment analyst today cannot work alone. He/she will be in a team, and from time
to time, will have to communicate with people in other countries or offices. Technology comes
into play here, to provide communication and collaboration. This makes it easy for the teams to
stay on the same page while making decisions. Investment analysts should not be confined to
physical space when looking at and for information.
Mobility and cyber security is another impact role that technology plays in the investment
industry. Investment opportunities and information can be provided on the go. But if you are
not in a position to access such information, you might be at a loss.

 

To this end, technolog yprovides mechanisms to enhance mobility and ensure an always-on option to access  information. To achieve this, cybersecurity has to be in effect. This ensures that critical and
confidential information concerning a firm remains secure. Hacking, ransomware and
unauthorized access are some of the challenges that cybersecurity comes in to solve. Any firm
in the investment industry wants to have private data remain private, lest it falls into the hands
of competitors, thereby, losing a competitive edge.

For any client-focused firm, getting information to clients in the most convenient way is vital.
Technology has changed the preferences of clients and materialized new ways to get
information. At the core, what a firm needs to do is ensure that information is sent to clients
quickly and in a secure and in a secure manner to dispel fears of information hijacking and
tampering. Technology has enabled this, as well as taking advantage of multi-channel
relationships with client and maximizing client interaction through interactive and user-friendly
portals, that are rich in content. All this fosters and improves client experience as well as client
service.

This list would not have been complete without talking about one of the new and fast-growing
disciplines in technology; Blockchain. Blockchain is a way of creating and validating transactions
from person to person, in simple terms. This technology will ideally reduce commissions,
enhance security while trading, eliminate fraud, and increase the speed of transactions.
Blockchain represents a unique opportunity for everyone in the investment industry to get
educated on it and how it can be applied in their firm since this technology has the potential to
transform the industry.

All of these technology roles in investment industry are backed by the growth and changes in
the IT world. Infrastructure components such as increased computing power and security
systems make it possible for these solutions to be effective and serve the purpose. However,
they are not cheap, and an investment firm needs to evaluate and deploy the solution that best
suits their needs and delivers a return on value.

Technology will continue to disrupt the investment industry. The best that a firm in this industry
should do is adapt to changes as they come and tune their systems to reflect the changing
market demands as well as client needs, lest they become obsolete

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