Download or read book Robo Advisors How to increase trust in Artificial Intelligence compared to traditional financial advisory written by Alina Riecker and published by GRIN Verlag. This book was released on 2020-12-31 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2020 in the subject Business economics - Review of Business Studies, grade: 1.1, Reutlingen University (ESB Business School), language: English, abstract: Nowadays, tech companies have entered our lives in nearly every possible area of application, from smart coffee machines to algorithmic-based music recommendations. Logically, it is not a far stretch that the financial sector will also experience disruption through technology-oriented startups. The so-called FinTech’s, short for financial technology, can be independent, newly found startups, or can be implemented by existing financial institutions as a complementary sales channel and span a wide ar-ray of functions, including peer-to-peer lending and crowdfunding, cryptocurrencies and blockchain, and also, robotic investment advice. It is no surprise that this development will affect traditional financial advisory. Mainly robo advisors are seen as one of the most disruptive technologies in the financial sector. What used to be a people’s business and strived through human connections and relationships turned digital: a robo advisor can replace all functions of traditional financial advisors at a lower cost point and while being available 24/7. Based on financial theory, the offer investors personalized portfolios – all through pressing buttons on a phone screen. Whilst promising to streamline financial investment and to make it accessible to everybody, regardless of wealth, customer adoption compared to the global financial service market has been low. Disruptive technologies offer a lot innovative and smart features, but customers might be hesitant to try the solutions. People rely on the experience of others to build trust, and the little experience of early adopters might not be enough to influence trust to a large extent. Trust is an important factor for all services or technologies, but especially in unprecedent areas such as fully automated financial advice. The thesis will be based on a literature review methodology and will assess the theoretical background of trust through analyzing and comparing previously done research on the matter. Additionally, a quantitative study focusing on trust-building factors in robo advisors has been used as a basis to form conclusions regarding the increase of trust. Industry insights, journal articles and conference papers build the foundation of this thesis. They were identified through the usage of scientific search engines, but also through backward and forward referencing searches. This approach provided a multitude of applicable literature from the fields of artificial intelligence and trust.

Download or read book Robo Advisory written by Peter Scholz and published by Springer Nature. This book was released on 2020-12-28 with total page 302 pages. Available in PDF, EPUB and Kindle. Book excerpt: Robo-Advisory is a field that has gained momentum over recent years, propelled by the increasing digitalization and automation of global financial markets. More and more money has been flowing into automated advisory, raising essential questions regarding the foundations, mechanics, and performance of such solutions. However, a comprehensive summary taking stock of this new solution at the intersection of finance and technology with consideration for both aspects of theory and implementation has so far been wanting. This book offers such a summary, providing unique insights into the state of Robo-Advisory. Drawing on a pool of expert authors from within the field, this edited collection aims at being the vital go-to resource for academics, students, policy-makers, and practitioners alike wishing to engage with the topic. Split into four parts, the book begins with a survey of academic literature and its key insights paired with an analysis of market developments in Robo-Advisory thus far. The second part tackles specific questions of implementation, which are complemented by practical case studies in Part III. Finally, the fourth part looks ahead to the future, addressing questions of key importance such as artificial intelligence, big data, and social networks. Thereby, this timely book conveys both a comprehensive grasp of the status-quo as well as a guiding outlook onto future trends and developments within the field.

Download or read book Advances in Consulting Research written by Volker Nissen and published by Springer. This book was released on 2018-10-18 with total page 423 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book brings together cutting-edge research on consulting in a single volume, thus helping to make the state-of-the-art in the field of consulting research more accessible, to promote better practices in business, and to spark further research. The respective articles approach consulting from very different angles, taking into account various approaches for and fields of consulting, consulting providers, clients and markets, as well as technologies and trends. The book will benefit all consultants who want to critically reflect on their own methods and approaches in light of recent scientific findings. It also offers a helpful guide for students in Management and IT-related courses who are either considering a career in consulting or want to be informed consulting clients. Lastly, the book provides a comprehensive review of current developments and trends in consulting that will foster future contributions in this important research field.

Download or read book Artificial Intelligence in Asset Management written by Söhnke M. Bartram and published by CFA Institute Research Foundation. This book was released on 2020-08-28 with total page 95 pages. Available in PDF, EPUB and Kindle. Book excerpt: Artificial intelligence (AI) has grown in presence in asset management and has revolutionized the sector in many ways. It has improved portfolio management, trading, and risk management practices by increasing efficiency, accuracy, and compliance. In particular, AI techniques help construct portfolios based on more accurate risk and return forecasts and more complex constraints. Trading algorithms use AI to devise novel trading signals and execute trades with lower transaction costs. AI also improves risk modeling and forecasting by generating insights from new data sources. Finally, robo-advisors owe a large part of their success to AI techniques. Yet the use of AI can also create new risks and challenges, such as those resulting from model opacity, complexity, and reliance on data integrity.

Download or read book Robo Advisors and Beyond written by Silas Meadowlark and published by Independently Published. This book was released on 2024-08-20 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Rise of Robo Advisors The investment management industry has undergone a remarkable transformation, with the rise of robo advisors taking center stage. These digital platforms, powered by sophisticated algorithms and advanced data analytics, have disrupted the traditional financial advisory model, offering a new and innovative approach to wealth management. Understand the robo advisor landscape and its implications for the future of the industry. The Advantages of Robo Advisors Robo advisors have gained popularity due to their cost-effectiveness, scalability, flexibility, and transparency. These digital platforms can efficiently manage a large number of client accounts, provide personalized investment strategies, and offer 24/7 access to investment management services. Challenges and Limitations of Robo Advisors While robo advisors have revolutionized the wealth management industry, they also face several challenges and limitations, such as the lack of human interaction, reliance on algorithms, and the evolving regulatory situation.

Download or read book FinTech Innovation written by Paolo Sironi and published by John Wiley & Sons. This book was released on 2016-07-19 with total page 184 pages. Available in PDF, EPUB and Kindle. Book excerpt: A survival guide for the FinTech era of banking FinTech Innovation examines the rise of financial technology and its growing impact on the global banking industry. Wealth managers are standing at the epicenter of a tectonic shift, as the balance of power between offering and demand undergoes a dramatic upheaval. Regulators are pushing toward a 'constrained offering' norm while private clients and independent advisors demand a more proactive role; practitioners need examine this banking evolution in detail to understand the mechanisms at work. This book presents analysis of the current shift and offers clear insight into what happens when established economic interests collide with social transformation. Business models are changing in profound ways, and the impact reaches further than many expect; the democratization of banking is revolutionizing the wealth management industry toward more efficient and client-centric advisory processes, and keeping pace with these changes has become a survival skill for financial advisors around the world. Social media, big data analytics and digital technology are disrupting the banking industry, which many have taken for granted as set in stone. This book shatters that assumption by illustrating the massive changes already underway, and provides thought leader insight into the changes yet to come. Examine the depth and breadth of financial technology Learn how regulations are driving changing business models Discover why investors may become the price-makers Understand the forces at work behind the rise of FinTech Information asymmetry has dominated the banking industry for centuries, keeping the bank/investor liability neatly aligned—but this is changing, and understanding and preparing for the repercussions must be a top priority for wealth managers everywhere. Financial Innovation shows you where the bar is being re-set and gives you the insight you need to keep up.

Download or read book Robo Advisor with Python written by Aki Ranin and published by Packt Publishing Ltd. This book was released on 2023-02-28 with total page 250 pages. Available in PDF, EPUB and Kindle. Book excerpt: Build your own robo-advisor in Python to manage your investments and get up and running in no time Purchase of the print or Kindle book includes a free PDF eBook Key FeaturesExplore the use cases, workflow, and features that make up robo-advisorsLearn how to build core robo-advisor capabilities for goals, risk questions, portfolios, and projectionsDiscover how to operate the automated processes of a built and deployed robo-advisorBook Description Robo-advisors are becoming table stakes for the wealth management industry across all segments, from retail to high-net-worth investors. Robo-advisors enable you to manage your own portfolios and financial institutions to create automated platforms for effective digital wealth management. This book is your hands-on guide to understanding how Robo-advisors work, and how to build one efficiently. The chapters are designed in a way to help you get a comprehensive grasp of what Robo-advisors do and how they are structured with an end-to-end workflow. You'll begin by learning about the key decisions that influence the building of a Robo-advisor, along with considerations on building and licensing a platform. As you advance, you'll find out how to build all the core capabilities of a Robo-advisor using Python, including goals, risk questionnaires, portfolios, and projections. The book also shows you how to create orders, as well as open accounts and perform KYC verification for transacting. Finally, you'll be able to implement capabilities such as performance reporting and rebalancing for operating a Robo-advisor with ease. By the end of this book, you'll have gained a solid understanding of how Robo-advisors work and be well on your way to building one for yourself or your business. What you will learnExplore what Robo-advisors do and why they existCreate a workflow to design and build a Robo-advisor from the bottom upBuild and license Robo-advisors using different approachesOpen and fund accounts, complete KYC verification, and manage ordersBuild Robo-advisor features for goals, projections, portfolios, and moreOperate a Robo-advisor with P&L, rebalancing, and fee managementWho this book is for If you are a finance professional or a data professional working in wealth management and are curious about how robo-advisors work, this book is for you. It will be helpful to have a basic understanding of Python and investing concepts. This is a great handbook for developers interested in building their own robo-advisor to manage personal investments or build a platform for their business to operate, as well as for product managers and business leaders in financial services looking to lease, buy, or build a robo-advisor.

Download or read book Robo Advisor Adoption Willingness to Pay and Trust Before and at the Outbreak of the COVID 19 Pandemic written by Daniel Ben-David and published by . This book was released on 2020 with total page 65 pages. Available in PDF, EPUB and Kindle. Book excerpt: We compare readiness to adopt and willingness to pay for (as a proxy for trust) the same financial advice labeled three ways (algorithm, human, and a hybrid of algorithm and human) using an online and a computerized laboratory experiment. Our experiments were conducted before and at the outbreak of the COVID-19 pandemic. We observe a significantly higher readiness to adopt financial advisors during the pandemic, a period of high volatility in the financial markets, compared to before. In the pre-pandemic period, for the same potential financial advice, we observe age and gender differences in the readiness to adopt and pay for the different advice options. These differences hold after controlling for a vector of technology adoption constructs, financial literacy, quantitative knowledge, and personal and demographic proxies. Yet, at the outbreak of the pandemic, we observe less sensitivity to the advisor's purported type and no algorithm aversion. Our findings suggest that during a crisis, individuals care more about having an advisor and are less sensitive to the type of advisor, whereas in ordinary times, they are more sensitive to the type of advisor and overall desire less advice. Our findings relate to the financial, trust, artificial intelligence, and information literatures.

Download or read book Powering the Digital Economy Opportunities and Risks of Artificial Intelligence in Finance written by El Bachir Boukherouaa and published by International Monetary Fund. This book was released on 2021-10-22 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper discusses the impact of the rapid adoption of artificial intelligence (AI) and machine learning (ML) in the financial sector. It highlights the benefits these technologies bring in terms of financial deepening and efficiency, while raising concerns about its potential in widening the digital divide between advanced and developing economies. The paper advances the discussion on the impact of this technology by distilling and categorizing the unique risks that it could pose to the integrity and stability of the financial system, policy challenges, and potential regulatory approaches. The evolving nature of this technology and its application in finance means that the full extent of its strengths and weaknesses is yet to be fully understood. Given the risk of unexpected pitfalls, countries will need to strengthen prudential oversight.

Download or read book Fintech Regulation in China written by Robin Hui Huang and published by Cambridge University Press. This book was released on 2021-07 with total page 315 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides a systematic and contextualized account of China's Fintech regulation.

Download or read book Artificial Intelligence and Financial Behaviour written by Riccardo Viale and published by Edward Elgar Publishing. This book was released on 2023-06-01 with total page 267 pages. Available in PDF, EPUB and Kindle. Book excerpt: Following rapid technological advancements that have taken place throughout the late twentieth and early twenty-first centuries, this intriguing book provides a dynamic agenda for the study of artificial intelligence (AI) within finance. Through an in-depth consideration of the use of AI, it utilizes case study examples to investigate AI’s effectiveness within investment and banking.

Download or read book The WEALTHTECH Book written by Susanne Chishti and published by John Wiley & Sons. This book was released on 2018-04-19 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt: Get a handle on disruption, innovation and opportunity in investment technology The digital evolution is enabling the creation of sophisticated software solutions that make money management more accessible, affordable and eponymous. Full automation is attractive to investors at an early stage of wealth accumulation, but hybrid models are of interest to investors who control larger amounts of wealth, particularly those who have enough wealth to be able to efficiently diversify their holdings. Investors can now outperform their benchmarks more easily using the latest tech tools. The WEALTHTECH Book is the only comprehensive guide of its kind to the disruption, innovation and opportunity in technology in the investment management sector. It is an invaluable source of information for entrepreneurs, innovators, investors, insurers, analysts and consultants working in or interested in investing in this space. • Explains how the wealth management sector is being affected by competition from low-cost robo-advisors • Explores technology and start-up company disruption and how to delight customers while managing their assets • Explains how to achieve better returns using the latest fintech innovation • Includes inspirational success stories and new business models • Details overall market dynamics The WealthTech Book is essential reading for investment and fund managers, asset allocators, family offices, hedge, venture capital and private equity funds and entrepreneurs and start-ups.

Download or read book Digitization of Financial Services Robo Advisors written by Amalija Pucko and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: After the Global Crisis in 2008, investors started seeking new ways of protecting their wealth. With decreasing trust in financial institutions, alternative solutions for obtaining financial advice emerged in digital shape in the U.S. Robo-advisors are low-cost online services that provide fully automated investment advice aimed at affluent Millennials. Since it does not involve human advice, and due to its rapid growth in the past couple of years, this technology has been classified as a disruption for the traditional financial services. The research questions of the paper are as follows:How will Robo-Advisors impact the traditional investment advice? What is the potential for adoption of Robo-Advisors and what are the crucial determining factors?Research has shown that Robo-advice will become mainstream within the next decade. It will not completely disrupt human-based investment advice, but reshape the industry and ease the process of optimizing investments. Results of the empirical study conducted among students from three European countries have shown that the potential for adoption of Robo-advisors is influenced by cultural differences, digital literacy, and economic factors. Also, students who were more risk-averse tended to be unwilling to adopt the technology due to perceived lack of control over financial decisions and lack of human-based advice.*****After the Global Crisis in 2008, investors started seeking new ways of protecting their wealth. With decreasing trust in financial institutions, alternative solutions for obtaining financial advice emerged in digital shape in the U.S. Robo-advisors are low-cost online services that provide fully automated investment advice aimed at affluent Millennials. Since it does not involve human advice, and due to its rapid growth in the past couple of years, this technology has been classified as a disruption for the traditional financial services. The research questions of the paper are as follows:How will Robo-Advisors impact the traditional investment advice? What is the potential for adoption of Robo-Advisors and what are the crucial determining factors?Research has shown that Robo-advice will become mainstream within the next decade. It will not completely disrupt human-based investment advice, but reshape the industry and ease the process of optimizing investments. Results of the empirical study conducted among students from three European countries have shown that the potential for adoption of Robo-advisors is influenced by cultural differences, digital literacy, and economic factors. Also, students who were more risk-averse tended to be unwilling to adopt the technology due to perceived lack of control over financial decisions and lack of human-based advice.

Download or read book Embodied Conversational Agents written by Justine Cassell and published by MIT Press. This book was released on 2000 with total page 452 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book describes research in all aspects of the design, implementation, and evaluation of embodied conversational agents as well as details of specific working systems. Embodied conversational agents are computer-generated cartoonlike characters that demonstrate many of the same properties as humans in face-to-face conversation, including the ability to produce and respond to verbal and nonverbal communication. They constitute a type of (a) multimodal interface where the modalities are those natural to human conversation: speech, facial displays, hand gestures, and body stance; (b) software agent, insofar as they represent the computer in an interaction with a human or represent their human users in a computational environment (as avatars, for example); and (c) dialogue system where both verbal and nonverbal devices advance and regulate the dialogue between the user and the computer. With an embodied conversational agent, the visual dimension of interacting with an animated character on a screen plays an intrinsic role. Not just pretty pictures, the graphics display visual features of conversation in the same way that the face and hands do in face-to-face conversation among humans. This book describes research in all aspects of the design, implementation, and evaluation of embodied conversational agents as well as details of specific working systems. Many of the chapters are written by multidisciplinary teams of psychologists, linguists, computer scientists, artists, and researchers in interface design. The authors include Elisabeth Andre, Norm Badler, Gene Ball, Justine Cassell, Elizabeth Churchill, James Lester, Dominic Massaro, Cliff Nass, Sharon Oviatt, Isabella Poggi, Jeff Rickel, and Greg Sanders.

Download or read book The Disruptive Impact of FinTech on Retirement Systems written by Julie Agnew and published by Oxford University Press. This book was released on 2019-08-29 with total page 240 pages. Available in PDF, EPUB and Kindle. Book excerpt: Many people need help planning for retirement, saving, investing, and decumulating their assets, yet financial advice is often complex, potentially conflicted, and expensive. The advent of computerized financial advice offers huge promise to make accessible a more coherent approach to financial management, one that takes into account not only clients' financial assets but also human capital, home values, and retirement pensions. Robo-advisors, or automated on-line services that use computer algorithms to provide financial advice and manage customers' investment portfolios, have the potential to transform retirement systems and peoples' approach to retirement planning. This volume offers cutting-edge research and recommendations regarding the impact of financial technology, or FinTech, to disrupt retirement planning and retirement system design.

Download or read book The AI Book written by Ivana Bartoletti and published by John Wiley & Sons. This book was released on 2020-06-29 with total page 304 pages. Available in PDF, EPUB and Kindle. Book excerpt: Written by prominent thought leaders in the global fintech space, The AI Book aggregates diverse expertise into a single, informative volume and explains what artifical intelligence really means and how it can be used across financial services today. Key industry developments are explained in detail, and critical insights from cutting-edge practitioners offer first-hand information and lessons learned. Coverage includes: · Understanding the AI Portfolio: from machine learning to chatbots, to natural language processing (NLP); a deep dive into the Machine Intelligence Landscape; essentials on core technologies, rethinking enterprise, rethinking industries, rethinking humans; quantum computing and next-generation AI · AI experimentation and embedded usage, and the change in business model, value proposition, organisation, customer and co-worker experiences in today’s Financial Services Industry · The future state of financial services and capital markets – what’s next for the real-world implementation of AITech? · The innovating customer – users are not waiting for the financial services industry to work out how AI can re-shape their sector, profitability and competitiveness · Boardroom issues created and magnified by AI trends, including conduct, regulation & oversight in an algo-driven world, cybersecurity, diversity & inclusion, data privacy, the ‘unbundled corporation’ & the future of work, social responsibility, sustainability, and the new leadership imperatives · Ethical considerations of deploying Al solutions and why explainable Al is so important

Download or read book The Future of Finance written by Henri Arslanian and published by Springer. This book was released on 2019-07-15 with total page 318 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book, written jointly by an engineer and artificial intelligence expert along with a lawyer and banker, is a glimpse on what the future of the financial services will look like and the impact it will have on society. The first half of the book provides a detailed yet easy to understand educational and technical overview of FinTech, artificial intelligence and cryptocurrencies including the existing industry pain points and the new technological enablers. The second half provides a practical, concise and engaging overview of their latest trends and their impact on the future of the financial services industry including numerous use cases and practical examples. The book is a must read for any professional currently working in finance, any student studying the topic or anyone curious on how the future of finance will look like.