Is Financial Investment Process Poised to Transform?

Is Financial Investment Process Poised to Transform?

By Capital Markets CIO Outlook | Monday, January 13, 2020

Algorithms are teaching machines the art of thinking, and the financial investment processes are bound to benefit.

FREMONT, CA: The proficiency of machines in making informed decisions without any manual intervention has grown rapidly. These developments have been the result of concerted efforts in the areas of artificial intelligencemachine learning, and deep learning. As machines undergo training with extensive datasets, the prospects of automated decision-making in financial investment processes are getting increasingly exciting. The complexity-ridden process of financial investment is now on the verge of intelligent automation as investors prepare for the adoption of technology. There are many ways in which the future of financial investment might change as a response to the growing influence of advanced technologies. Some of the potential areas of improvement are discussed here.

• Predictive Systems to Determine Market Future

The days of speculation-fuelled investment decisions are gone. Now is the time for intelligence-empowered decisions in the financial investment sector. Investors do not have to bank on intuitions while investing large sums of money in stock markets. Instead, machines powered by deep learning will be at the fore of intelligent investment decision-making processes. Deep learning capabilities can be fed with historical and market data from current times to allow informed predictions regarding the future performance of stocks and trends in the financial market. 

• Automated Execution of Trade

The trade execution channels can now be optimized with the help of machine learning-enabled routing mechanisms. Algorithms are able to calculate outcomes by comparing the viability of different channels using data records. This helps determine the best route for execution and results in higher returns.

• Secure Trade Settlements

The process of trade settlement is today very advanced and secured owing to the growing role of technology in the process. Innovation-driven investment firms are leveraging tools to carry out instantaneous settlements with minimum instances of disruption or mismanagement.

Financial investment is poised to transform significantly, and technology-first companies have already initiated the process of transformation.

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