Today’s wealth management firms are combining both humans and machines to help businesses succeed. In fact, we see little appetite for fully automated wealth management these days and more desire for hybrid advice. Even with the exponential increases in computer power and data storage over the past two decades, we still want a financial advisor that we can trust. Read below to learn how wealth management firms are using new technologies to make sound investments.
Machine learning stands at the forefront of recent A.I. Technology. In the asset management industry, AI assistants present tradeoffs and provide alternatives while human asset managers ultimately decide the course of action. In the end it’s going to be the ability to extract value from big data within these new technologies that’s a key differentiator.
For example, Merrill Lynch is experimenting with an A.I. stock-picking tool that helps it identify value in overlooked small-cap stocks, and BlackRock is exploiting social media and web search information. Traditional industry practices will struggle to compete with such new technologies. After all, analytics using ML can tap into streams of “unstructured” data that social media and global digitalization are creating.
Leading asset managers are capitalizing on the opportunity to invest in advanced data analytics and ML capabilities. They need to implement new investment strategies and reorganize their operations around next-generation investment systems. They’re also using these tools as early warning systems for assets at risk. At a minimum, A.I.-enhanced data analytics are complementary to traditional financial analysis. We should be seeing some industry-changing waves in the asset-management industry as digitization transforms it into a technology-driven one.
If your business is in need of Capital Formation, M & A, and Investor Relations, call Blaine Riley of International Monetary at (949) 200-4601. International Monetary is a full-service Merchant Banking Advisory Firm with headquarters in Newport Beach, CA.