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IoT Can Change Wealth Management – ReadWrite

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Brad Anderson


Is the Internet of Things going to change the wealth management customer experience? Some of the dreams of wealth management have already come true.

Is the Internet of Things going to change the wealth management customer experience? In the last few years, there has been a lot of talk about how the Internet of Things (IoT) can change how we live. People hope that connected devices will share information to make our lives easier. Microwaves that scan food packaging, lights that turn on and off when we enter and leave rooms — and fridges that order food when we run out are some examples of the IoT miracle.

As they say — whether you’re rich or whether you’re poor, it’s nice to have money. And it’s nice just to save a little money.

How Can Technology Change Our Interactions?

Are you one of the many people who wear or have a smartwatch? If you are, then you’re more aware of how technology can change how we interact with appliances and material things. However, it may be hard to imagine how the Internet of Things could change a service industry like wealth management.

However, there is a lot of room for growth. Sensors, wearables, and other devices and apps can now share data with other applications. As a result, wealth managers and advisers can personalize accounts more cost-effectively, and this moves the wealth management system forward.

Significance of IoT

IoT can significantly increase customer service and outcomes.

Account-holders may find a local advisor using geolocation, and their calendars can sync while they are speaking with each other. Most technology will make better use of everyone’s time.

A financial advisor can utilize the tech, Open Finance, to get all financial data. Many systems can help in the field of finance and will assist the advisor in guaranteeing the customer has adequate money for bills, savings, and long-term investments.

An advisor may also set up automated fund switching based on cash flow, which will optimize profits and tax advantages.

What About Wearables

Even wearables nowadays can help people plan for their retirement. In addition, a wearable can tell people how healthy they are, how likely they will get sick, and how well their organs are working.

Account owners can use this information to make precise, personalized calculations about how long a person will live. A better understanding of an individual’s health could help advisers and wealth managers develop better solutions for their clients’ needs. Always good to know is the length of life expectancy or the need for better personal and professional care.

Account owners can use this health and lifestyle data to make customized cash flow forecasts. The forecast uses real-time monitoring information of different factors that affect life expectancy.

Knowing how much exercise you do and how much you eat can boost morale. It can also help providers figure out how much to charge for products that promise to make money. In addition, account owners can set up notifications to help improve health and lifestyle factors. For example, encouraging exercise, making healthier choices, and translating health into telling people to change their pension contributions.

An Example

Vitality is an excellent example of a company that uses innovative technology. This company uses rewards to encourage and keep people from doing healthy things. People who sign up for Vitality get discounts on trackers from their partners. When they record an activity like a workout, steps, or meditation through the Vitality App — they get free drinks from Caffé Nero every week for a year. Another way IoT is permeating all business.

Vitality members get points for things they do for exercise. Over time, these points add up to make the bronze, silver, gold, or platinum members. As a result, members can get lower product fees on their pension investments based on their status. They can get them all the way down to zero when they reach Platinum status. The company calls it “shared value insurance.”

It is so named because it gives members tangible health and financial benefits. It helps Vitality and its advisers because people keep investing for longer. It also helps society because more people have better health and more money. And there are many similar companies out there.

Many companies are changing to a motto of better daily exercise for employees — and they get better insurance. Of course, none of this could be done without new technology.

Investments

One way to make investments more personalized is to use behavioral data to determine how much risk each person is willing to take. Then, the system can recommend funds and companies that match the person’s interests and purchasing habits. It can also work the other way around.

You can boost the value of your investments by assisting people to buy more products from the companies you own. In addition, a link between a client’s interests and investments should help them become more interested in their money.

Real-time information can help investment managers decide whether to buy or sell.

For example, crop sensors are used to understand how decisions are made and offered from financial managers to clients. These sensors measure air temperature and water content in the soil — then financial managers can take a short position in the wheat market for their clients.

Tracking how much fuel you use in your home is another example. That info could help you decide whether to invest in or get rid of energy supplier stocks. Having information then shows us that wealth can come with the use of the IoT.

Real-time information can also help drive environment, social, and governance (ESG) investing to become more common.

More accurate data collection and reporting mean more transparency and better corporate behavior. For example, if the company’s carbon footprint, waste management, or employment practices fall below a certain level, the system liquidates the holding automatically. This could happen if an asset manager sets a certain threshold for a particular set of criteria.

Sensors and devices are becoming more common in a wide range of industries. However, we are still in the early stages of how IoT products will affect infrastructure and security and how businesses will make money as IoT becomes more common.

Wealth Management Industry

The big question is how the wealth management industry takes advantage of this power and uses all the available data.

Many companies that still use old technology have difficulty getting data out of old systems.

It’s like battery power is stopping the development of electric cars. Still, the lack of a rich platform ecosystem and an open operating system that lets us plug and play are also preventing us from taking full advantage of IoT.

IoT devices used to manage wealth become more important as more people store more data.

As a result, the ability to capture and use this data grows more important. Firms will be able to clear these hurdles when they start using the most up-to-date APIs and intelligent data analytics.

IoT can be a game-changer. There, different systems from providers in different places will talk to each other seamlessly, benefiting everyone in the process, including finances and wealth management.

Move forward and increase your business to include a new way to take care of your own wealth management.

Image Credit: Stan Krotov; Pexels; Thanks!

Brad Anderson

Editor In Chief at ReadWrite

Brad is the editor overseeing contributed content at ReadWrite.com. He previously worked as an editor at PayPal and Crunchbase. You can reach him at brad at readwrite.com.

Politics

Fintech Kennek raises $12.5M seed round to digitize lending

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Google eyed for $2 billion Anthropic deal after major Amazon play


London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

Featured Image Credit: Photo from Kennek.io; Thank you!

Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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Fortune 500’s race for generative AI breakthroughs

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Deanna Ritchie


As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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Politics

UK seizes web3 opportunity simplifying crypto regulations

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Deanna Ritchie


As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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