The WEALTHTECH Book

AI-Powered Wealth Management Products and Investment Vehicles

By Yaron Golgher

Co-Founder and CEO, I Know First

Dr Lipa Roitman

Founder and Partner, I Know First

and and Dmitry Neginsky

Senior Research and Strategic Analyst, I Know First

Complexity of the Financial Markets and Big Data

Institutional and individual investors and financial advisers are looking for advanced technologies which not only help them in making investment decisions or recommendations with more confidence, but also offer a different perspective on the financial markets. The capital markets constitute a very complex system that continuously evolves beyond established theories and thus cannot be sufficiently explained and predicted by traditional models. Moreover, market participants are overwhelmed by the increasing amounts of (big) data that needs to be digested and understood to be able to navigate through all kinds of market environments successfully.

Even the supposedly best professionals in the industry seem to fail to adapt quickly enough to technological advancements, rising competition and the constant flow of new market moving information. This can be seen from the irregularity of hedge fund returns and their declining ability to generate alpha over the last 15 years. Therefore, more complex self-learning systems are needed in order to model the financial market and adapt to the changes it continuously goes through.

AI and Deep Learning: Adaptable and Self-Learning Capital Markets Modelling ...