We enter cómine isá evolving investment landscapeón retail and institutional and towards dówhere technology is headedíto, from the products alternatives to ESG driven by AI and blockchain.
In the last decade, digital brokers, robo-advisors, and micro-investing have transformed the way people manage their money.
While these have been major technological developments, they are effectively mainstream right now.
Robinhood launched 8 years ago and is now a public company. All the big asset managers now offer a robo-advisor, and there are a dozen applications that allow you to invest in fractional shares.
In the next decade, the future of investing will be built around key technologies such as:
- Alternative investment platforms opening up access to non-traditional assets such as private equity, real estate, art, and cryptocurrency for retail investors and their advisors.
- ESG powered by AI offering retail and institutional investors more comprehensive and accurate assessments of the environmental and social impact of investments.
- La asset tokenization which converts financial or physical assets into digital tokens via blockchain technology, providing the infrastructure for businesses and investors to issue, track and trade assets more efficiently.
Below, we delve into these three technologies and how they are poised to have a transformative impact on both retail and institutional investing.
BECAUSE IT IS IMPORTANT
Global assets under management (AUM) - the total value of retail and institutional investments held by financial institutions - reached $112 million by the end of 2021, according to BCG. For context, this figure is equivalent to 117% of world GDP estimated by the World Bank for 2021.
How that $112 million is invested has a significant impact on how individuals build their wealth and save for retirement. It also affects the way institutional investors and, on a larger scale, the largest financial services organizations operate.
BECAUSE RIGHT NOW
The sector of heritage technology stands reaching a key point of maturity. Equity financing for heritage technology companies reached a new record of 18.900 millions of dollars in 2021, nearly tripling that of 2020. That funding is now being put to use in markets driven by technology, artificial intelligence and blockchain, driving innovation in areas like capital markets and asset management that are burdened with legacy systems. inefficient.
Meanwhile, public markets recently fell to a new low in 2022, with the S&P 500 down more than 20% at the end of September from its high earlier in the year. With struggling stocks, rising interest rates, inflation and recession fears, both retail and institutional investors are clinging to new ways to generate returns.
WHAT YOU SHOULD PAY ATTENTION TO
The future of investment creates opportunities for the world's largest financial institutions, including investment banks (JP Morgan, Goldman Sachs), investment management companies (Blackstone, State Street), asset managers (BlackRock, Fidelity), venture capital firms (KKR) and private companies looking to raise capital.
These traditional financial operators are partnering with and investing in financial technologies that are at the forefront of the investment evolution, including alternative markets such as iCapital Network, information platforms on sustainability and ESG such as AI Clarity, and tokenization platforms such as Securitize.
