For decades, the investment industry has been agenda-driven — products, fees, and government policy, to name a few.
In addition to their own behavioural biases, investors have had to cope with information that’s either tightly controlled (justifying high fees) or prolifically available. Understandably, investors resemble deer caught in headlights when the market swoons.
Technology is expected to liberate investors from this tyranny.
I am not convinced. Instead of expecting technology to solve our problems, we want it to shine a light on investment choices, leading to better decisions, raising investment performance. Augmented, not artificial intelligence.
I believe that there is a powerful wave of disruption emerging in the communication and delivery of sophisticated, credible investment content and products.
Complementarity, or human-computer symbiosis, is the future for technology in investment advice. This means offering choice. Choice between mass market product or sophistication. Choice between a low or high touch experience. Choice between self-directed investing or a trusted advisor, where both parties are equipped with quality decision-making tools.
Complementarity means combining deep investment expertise with big data and exceptional user interfaces. Intelligent investor curation and technology can transform the industry by communicating complex content in simple, user-friendly form, and by innovating the delivery of investment execution.
This round of disruption will fail unless it embraces technology to offer choice to the consumer. Choice to take smart decisions alone if desired. Choice to have an informed relationship with the advisory community if not.