Bridging the client-advisor gap
While the financial world often paints a picture of stock pickers who tantalize with pledges to consistently outperform the market, the reality is a stark contrast. Most falter in living up to this promise over the long haul. Meanwhile, even wealth managers, deemed as the industry's fiduciaries, have their biases and limitations despite their commitment to clients' best interests. Amidst this backdrop, how can investors sift through the noise to find true objectivity? This dilemma underscores the need for an impartial platform.
FINQ aims to set a new benchmark for genuinely principled solutions using its future products in order to bridge the gap and provide clarity on financial investments. Its future products will embrace the power of its AI engine to make more personalized and diverse investment solutions. Currently, FINQ peels off the marketing wraps of complex products from the entire market, breaks them down then analyzes and provides rankings that match different investment strategies according to the financial product’s risk level.
AI's parallel ascent
As Wall Street's age-old practices evolve, so does technology. While finance has been slow to adapt to emerging technologies, AI is no longer knocking on the doors of the investment world; it's ushering in a paradigm shift.
The AI revolution
The AI revolution is reshaping the investment landscape, driven by powerful algorithms and groundbreaking innovations. For example, AI chatbots enhance advisory productivity by offering clients guidance around the clock. Moreover, AI's ability to analyze large datasets reveals previously unseen investment insights and patterns. Unsurprisingly, a recent Accenture survey shows that 98% of financial advisors believe AI is vital for financial advice. In another survey, 90% of 50 polled hedge fund managers said they use AI to meet their return objectives. Experts also predict that the value of algorithmic trading will hit $19 billion by 2024. Meanwhile, AI's role in asset management, now at $2.6 billion, is set to grow at a rate of 24.5% annually through 2030.
How AI enhances wealth management in the context of active and passive investing
Wealth management has historically been synonymous with trust, fiduciary advice, and an elite clientele. Yet, in the interplay between active and passive investment strategies, the digital age, reveals the nuances of each approach. “The passive and the active should work together," emphasizes Eldad Tamir, FINQ's CEO. He further explains, “In the short term, passive isn't suitable due to constant market fluctuations. When it comes to active investing, clients often choose funds based on a basket of irrelevant equity categories. They seldom are able to consider the real risk of their assets, the actual risk/return potential, fund relative equity multipliers, or evaluate how expensive and potentially dangerous they might be.”
So, how does FINQ propose to transform wealth management by seamlessly blending these strategies?
Evolving client needs and AI integration
Tamir highlights the significant shift from traditional, club-like wealth management practices to contemporary, data-driven digital solutions. "The world has changed and continues to do so," he says. "The online digital solutions people seek today are essentially 'wealth management for the many' without exclusive club memberships. As more individuals express interest in the market, there's a blue ocean of opportunities for readily accessible digital investment management and advisory tools."
