By Vittal Ramakrishna, Founder and CEO, POD World
Investing has always been a challenging endeavor since the beginning of civilisation. Furthermore, it was always a traditional affair carried out by the elderly or those with great wealth. But ever since the digital revolution began, several sectors—including finance—have embraced technology to completely transform the way they conduct business. In fact, via innovation, industries have undergone internal transformation as well as external transformation, facilitating easier and more seamless financial investment than ever before.
With the introduction of the Internet, more people have access to investing opportunities and have a higher level of financial understanding. New investors can now boost their success rates thanks to technological advancements in the industry, which have greatly aided the expansion of the sector. The same is true for decisions regarding investments. Investors are better informed and prepared to make investing decisions using wealth tech platforms as their trust in digital platforms has increased. According to a Research and Markets report, by 2025, it is anticipated that the market for wealth tech will triple, going from $20 billion to $63 billion. According to the report, 12 million more tech investors are expected to have wealth in India by 2025.
How Technology Can Improve Investment Decision
Financial-Planning Software: Nothing is more important than having a complete awareness of the portfolio and cash-flow situation when it comes to investing. Lack of knowledge makes it difficult for someone to keep track of their stocks or other investments, and they can make decisions that can impact their portfolio. For the investor to buy the right assets at the right moment and generate supernormal returns in the future, cash flow must be continuously monitored and controlled. In this context, financial planning software is developed to help with cash inflow and outflow forecasts, enabling investors to plan their investment decisions.
Enhanced Digital Security: In the present day, investors have started to favor online transactions as digitalisation has taken centre stage. By encrypting and protecting databases, technology has increased the security of transactions. Digital wallets include sensitive data about a person’s identity and wealth, and technological advancements have made some of these wallets decentralised. Additionally, it has guaranteed anonymity, further protecting the user’s identity. Similar to how modern technology has
enhanced personal information protection and significantly decreased the risk of security breaches and hacks, lowering the potential for financial losses. Despite the fact that fraud and hackers are an ongoing concern, it is essential to implement strong password requirements, biometric screening, and other ineffective safeguards.
Awareness: As the internet evolved, it has expanded the amount of data and made financial decisions easier to reach and more convenient. Since there is so much information available nowadays, investors risk missing important news and suffering significant financial losses if they consume too much information. In order to address this, individuals can use news aggregation systems that employ AI to track news that is pertinent to their interests. These apps can help in automatically discovering opportunities thanks to current advances in machine learning, saving you time by reducing the amount of web or newspaper browsing.
As a result, as time goes on, investors gain a better understanding of the financial markets that are relevant to their assets and may assess trends that might enable them to
predict the future of their investment decisions.
All Things Considered!
The world of investing has undergone a change as a result of technology, which has democratised access and provided investors with the means to make better-informed choices. People can now manage their portfolios and cash flow better thanks to the development of financial planning software. Online transactions are now safer due to improved digital security measures, which also safeguard critical investment data. Additionally, AI and machine learning have been used to leverage the wealth of data on the internet, enabling investors to stay informed. A more open and informed investing landscape is being made possible by this technological shift.