We are surrounded by intelligent machines; from Amazon recommending us the next book to buy to Spotify curating our playlists and Netflix’s algorithm influencing the content that we consume, technology has ushered us all into seamless and intuitive living. As we await cars fuelled by electricity, perhaps even driven by technology, it gets difficult to control one’s imagination on everything that can be deemed possible with technology. And thus, one may wonder, when technology is penetrating every stratum of our lives, can the capital markets space be left far behind?
Nobody can deny the role of humans in the stock market trading equation. However, while stock market brokers and analysts have been occupied with crunching numbers, AI-led automation and other tech advancements are here to not only offer support but also shape up the future of capital markets. Some of the leading platforms in India are leveraging the best of technology available today to launch AI-powered Robo advisers, chat-bots etc. In addition to expediting the entire process, these products are together contributing towards making the promising world of stock market investments safer and more easily accessible to one and all. Let’s delve deeper and explore how:
The Game-Changer: Fastidious Data Analysis
As industry pundits will say, the key to successfully slaying the capital markets space is understanding data and the trail it leaves. However, the same attribute may stem anxiety in investors, for it is a daunting task for any human to be braced with such a huge extent of historical and present-day data. Further adding to this agony is the fact that data in financial markets is subject to change dramatically, and oftentimes, in unprecedented ways. However, the same conundrum has now been solved with technology.
Applying artificial intelligence to investments, as discovered by Wall Street statisticians, allowed them to crunch huge data sets efficiently and achieve insights that other statistical methods couldn’t offer. Closer to home, a few full-service brokerage firms have tested AI-led algorithms in different markets to consistently outperform the benchmarks.
And that’s not all! Let’s find out more ways in which financial platforms deploying advanced technologies are making the world of investments safer for everyone:
Seamless on-boarding – with digitalisation, one needn’t go through the entire daunting process of opening a physical Demat account etc. The leading financial firms in India have digitised the entire process, making broking experience seamless, engaging and easy to understand for users. Furthermore, users now have access to new-age features such as mobile application, automated KYC authentication system, and a completely digital client on-boarding process.
Simplifying complex trading patterns – With AI and big data analytics, broking firms are able to simplify complex trading patterns that had previously daunted the smooth investment journeys of investors and traders. By leveraging machine learning and big data, these financial platforms offer personalised services to customers, assessing compliance and risk in real-time.
Round-the-clock assistance – helping everyone be armed with the right information are the chat-bots and mobile applications being commissioned by the trading platforms. Just like ‘Okay Google’ helps you dial a number or play a song of your liking, these apps can be accessed to find any information related to financial data, conversions or notes. Furthermore, while only having a simple chat with an AI-bot, one can manage their financial goals and investment journeys, seamlessly from the app.
Investment advice made easy – no longer do users need to chase a broker, an endeavour that could be very taxing if nothing else. Now, owing to tech advancements, expert services are available, all the time. Running a complex AI-algorithm in the background that churns huge data sets, financial platforms offer investment hacks and advice in real-time to a large number of audience. The forecast engine, as mentioned before, has a proven track record of beating the market standards. With assistance being made available round the clock, investors surely feel safer in diversifying their portfolio with retail equity investments, amongst others.
Opening the field for more innovation – financial platforms have channelized the collective prowess of data scientists, market experts, analysts, and technocrats to commission such AI-powered engines. With people from such diverse backgrounds coming together to facilitate investment journeys, the capital markets space has been opened up for more advancements.
The tech advancements in the field of capital markets is not a new phenomenon. Since the mid-1980s, researchers and scientists from across the globe have been trying to come up with a personalised, computerised stock picker for the masses. Of course, these developments have been reduced to the elite corridors of the society, for the privileged have the wherewithal to invest in such technology. However, indigenous brokerage firms joining the ranks have democratised access to superior-tech features. With barriers to entry being removed and more innovation only set to come into the segment, retail equity investments, amongst others, are now a safe bet for today’s users aspiring for a secured future and better standards of living.
-- Rohit Ambosta, Associate Director and Chief Information Officer, Angel Broking Ltd
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