Six ways technology can improve your investment decisions

Since the dawn of civilization, investing has been a complicated process, to begin with. Also, it is a traditional activity performed by the elderly or wealthy. However, since digitalization began, various companies have used technological advances to transform their business processes, without capital. In fact, through innovation, the sectors have changed not only from the outside but also from the inside and investing is easier and easier than before.

The advent of the internet has made investing more accessible and increased financial awareness among non-investors. Technological developments in the investment sector have enabled new investors to increase their success rate and have greatly contributed to the growth of the industry. The same is true for investment decisions. As investors’ trust in digital platforms grows, they are more aware and willing to make investment decisions using real estate technology platforms. In fact, according to the report Research and Markets, it is expected that the value of the real estate technology market will increase, from $ 20 billion to $ 63 billion by 2025. The report also revealed that in the year 2025 the growth is expected investment in India by 12 million. .

There is no denying the fact that due to the benefits and increasing demand, there is a great need for technology in this era. In the beginning, technology was a huge time saver. We don’t need to visit actual banks to get information. Better investment options are easier and faster due to innovation. According to Kuvera (a Sebi-registered investment advisory firm), nine out of ten Indians prefer to invest through online investment platforms. Internal and external communications are improving as technology advances. Also, the entire world is carrying high-end devices in their pockets. All businesses, especially investment, must step up and adapt to the changing environment. As a result, technology can help improve investment decisions by providing flexibility to consumers in today’s environment.

Ways technology can improve financial decision-making
Financial Planning System: When it comes to investing, nothing is more important than having a complete understanding of your portfolio and financial situation. Anyone who lacks the right information will have a hard time looking at their assets or other investors and can determine the impact on their portfolio. Investing requires constant monitoring and control of cash flow for the investor to buy the right assets at the right time in order to get supernormal returns in the future. This is where financial planning software comes in to help predict income and exit, allowing investors to plan their investment decisions.

Enhanced digital security: Nowadays, since digitalization has taken center stage, investors have started to prefer online transactions. Technology has become more secure by encrypting and storing data. Digital wallets contain personal information about one’s identity and assets, and advances in technology have made it possible for some of these wallets to be decentralized. Anonymity is also guaranteed, which secures the identity of the user. Likewise, modern technology has improved the security of personal information and greatly reduced the likelihood of hacking and security breaches, reducing the possibility of financial gain. While scams and hackers are always a concern; therefore, it is important to use sensitive passwords, biometric checks, and other non-invasive methods.

Information: The advancement of the internet has made financial decisions easier and simpler; has also increased the amount of data. With so much information these days, too much information can cause investors to miss important news and experience significant financial losses. To solve this, a person can use news tools that use AI to look for topics related to their interests. With recent developments in machine learning, such programs can help identify opportunities without having to spend time browsing the web or newspapers. As a result, over time, investors know more about the markets around their assets and can evaluate trends that can help them predict the future of their economic decisions.

New asset classes: In addition to enhancing the user experience, technology has helped develop new investment opportunities. The most common features are low cost, investment, international shares and others. Even ten years ago, getting into these asset classes was considered impossible.

Increase accessibility:
With the advent of technology, investing in stocks, derivatives, mutual funds, PMS, AIFs etc. has grown in popularity. In fact, the Indian stock market has grown significantly in recent years, with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) serving as the country’s largest stock exchanges.

(The author is a founding member, Centricity)


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