With more and more new technology coming out every day, can new technology make you a better investor? The short answer: yes.
There are many ways in which technology is shaking up the investment world. If used effectively, many of them can be extremely beneficial to investors. For example, real estate agents are using Virtual Reality to help sell real estate and property to buyers or investors who may not be able to visit them in person. Look at AirBnB, a platform that helps individuals get the most out of their vacation homes and mortgage-related investments. It’s no different in the asset management and investment world. Technology can be utilized in a variety of ways to help with both.
Take a look at a few of the benefits you can profit from when using finance and investment technology:
Mitigating Risk & Harnessing Data
When it comes to technology, it’s all about the numbers, the patterns, the algorithms, and a huge lack of emotional input. If you ask a computer or application what it “feels” about a particular investment, it will only spit out data. Where technology can help investors is by taking some of the guesswork out of investing. It can find patterns, trends, and potential that may have been overlooked or taken a lot of time and training to see. This removal of some of the emotions involved in financial matters can lessen the risks associated with investing.
This data and technology can also make real-time information readily available to many more people. Instead of waiting for ticker tape, everyone with an internet connection can have stock data in their home office in as close to real-time as possible.
Now, more than ever, individuals with the drive, interest, and time can educate themselves on financial matters. This readily-available advice, data, and education allow more people to take charge of their finances and jump into the world of do-it-yourself investing. Investment topics, such as mortgage investment, that were once reserved for a select few with the knowledge, are now easily researched.
Technology allows investors to have better access and communication with experts. Email and chat forums allow people to talk about trends and data with other knowledgeable individuals. Businesses that are managing funds can easily send reports and updates to clients, and clients can more easily remain in contact with fund managers and advisors. For investors who have fewer dollars to spend and may be at the beginning of their investment journey, robo advisors bring advice to a digital level cutting down on the costs of advisors.
Level the Playing Field
Increased education and communication has had a profound effect on the amount of people who can now get into investing and asset management. To top all this off, technology helps to lessen the costs once associated with investing. Fewer and smaller management fees mean more people can consider different investment streams and strategies.
There’s always a downside though, especially with technology. When we rely too heavily on technological advancements, we may lose track of alternative methods that are still beneficial. Similarly, we can become too trusting of the advice and data technology provides and end up making poorly informed decisions. As with most things in life, technology has the potential to positively impact the investment and asset management world if used correctly.
Cooper Pacific uses technology effectively without losing touch on the projects and market trends ourselves. If you’re interested in learning more about how technology can be utilized to improve your investment strategy specifically in mortgage investments, get in touch with our colleague Jordan today.