Investment research has drastically shifted from the traditional methods to innovative technology based methodologies. Investors have started getting serious about research in the last 4-5 years. With various innovative methods and technology to improve methods of research, it has become possible to generate authentic and in depth information about the same.
Technology and research are now intertwined which makes the art of financial modeling easier. Today, investment is all about unconventional analysis, information systems management and a speed of execution available at a minimal cost. While the investment research space is witnessing structural changes, both providers and consumers of research are opening up to new ideas, tools, techniques, and thinking. Widespread use of big data analytics and machine learning (ML) to generate and consume investment research is one such idea that has been making some noise for a while now.Most companies have the capability to collect and store data from multiple sources – with new sources emerging almost every day, such as transactions, social media, and sensors; however, they lag in how to generate any value from it.
Here is a step by step guide to leverage software in order to improve investing research:
- Faster and low cost research: By leveraging the power of cloud based infrastructure and analytics software, companies can avoid a huge amount of investment in technology. Complex data sets can be easily connected and analyzed with the use of technology.
- Higher accuracy of research: Advanced predictive analytics techniques can be much more reliable and scalable as compared to the models built on MS Excel.
- Improved client servicing: Technology can be leveraged to make client servicing much more effective with the use of tools available to individual investors.
- Higher research productivity using automation: With the use of automation, the amount of time spent in data collection and organization can be saved and the same can be carried out within lesser time and at a lower cost.
- Integration of the tools into a single software: There are various methods used for research analysis and an integration of all the methods will ensure that the investor is able to carry out his research using different techniques.
- Fostering innovation in technology through research: Technology should be fostered using innovative methods and tools so as to ensure that the research is quick and easy. In order to achieve the same, the software should be developed and verified for accuracy before using the same for research purposes.
- Enhanced risk management: Tightening regulations and enormous complexity of risk factors have created the need for deeper integration and more powerful detection capabilities to manage portfolio and enterprise-wide risks. Software should be leveraged in order to ensure that the portfolio risk is managed in an appropriate manner and there are no discrepancies in the results displayed by the same.
To put it simply, the investment industry is on the cusp of some big structural changes.The future of investment management most likely involves a synthesis of human and artificial intelligence that harnesses the power of both. And there definitely are interesting times ahead!