How Digitization is Changing the Investment Management Landscape
Digitization is creating ‘wow’ moments for customers across industries. Whether it is hybrid retail models that provide online shoppers with a dedicated salesperson or e-pharmacies that will fill and deliver your prescription once you upload it, digital solutions are bridging the distances between businesses and their consumers.
Inevitably, digitization is becoming the protagonist in your investment story as well. Here are 5 ways by which digitization is changing the investment management landscape.
- Product side innovation: Technology is enabling investment managers to curate unique investment baskets that offer nuanced exposure to a specific theme, investment style, industry, or strategy. You no longer need to compromise and settle for cookie-cutter solutions that are made for the masses. Instead, through products like WealthBaskets that are available on the WealthDesk platform, you can invest in a wide range of curated investment portfolios that are created by expert investment professionals and offer a deeper level of customization.
- Democratic access: Inarguably, financial services providers have always been biased towards ‘big money. This means that as an average investor, you never get an opportunity to invest in great deals or lucrative investments that can potentially generate good returns. Digitization, and specifically platform station of financial services, has made the investment management process democratic by ensuring that you have access to a wide variety of investment products.
- Transparency: The right kind of investment planning can go a long way in ensuring that you are able to meet your financial goals. Despite this, you might choose not to invest or make sub-optimal investment decisions leading to a bad investment experience. This largely stems from low levels of transparency and information asymmetry in the investment management industry. However, digital transformation is enabling a shift towards greater transparency. For example, if you purchase a WealthBasket on the WealthDesk platform, the stocks in the basket are immediately credited to your Demat account. Changes can be made only if they are initiated by you.
- Speed and efficiency: In the investment world, a few seconds can make a big difference. Speed and efficiency are integral to financial services transactions. Interestingly, this is one area where financial services firms have been proactively leveraging technology and the relevant digital solutions.
- Low cost: Digitization can also potentially lower the cost of transacting as it improves the scale of business. The savings from lower costs can help traders and investors amplify their returns over a period of time. Further, lower costs also mean that more people can access investment management services.
Digitization has catalyzed change across industries, thereby engendering value for not just customers, but for the entire ecosystem. It can orchestrate similar changes in the investment management landscape as well. If you want to have a great investment journey and meet your investment goals, you need to ensure that you engage with financial service providers that are leveraging the power of digital to create ‘wow’ moments for you.