Today, individuals have little to no control over their pension plans and asset allocation decisions. Historically, retail investors have held a significant fraction of the stock market’s value. In 1963, UK citizens owned 53% of the market by value. By 2010, this had declined to 10%. Recent surveys and studies highlight that despite a strong desire to invest, a lack of confidence combined with opaque and jargon-laden investment information keeps many investors away.
Next-generation Robo-Advisor technology is required
ALA is looking to tackle this lack of transparency and confidence through the potential development of a ‘next generation’ Robo-Advisor. We anticipate that through this development, and it’s introduction to the market, we will be able to help businesses and consumers make more informed investment choices and facilitate affordable, responsible and trustworthy investment decision support.
Robo-Advisors are not a new phenomenon, but most are based on rigid models, such as the Markowitz model which omits wide-ranging information sources. These types of models can put investors at a disadvantage. We anticipate that through the introduction of a next-generation Robo-Advisor model, by contrast, we will be able to offer investment advice using macroeconomic factors, augmented with financial news, company performance, and market sentiment.
A free reign to choose, and affordable for all
Our plan is that ALA OneLogic’s next-generation Robo-Advisor will offer unparalleled access to sophisticated investment decision models, which, today, are the reserve of large investment banks and insurance companies.
We expect, through this new technology, that we will disrupt the existing consumer wealth management market and provide investment decision models and comprehensive automated portfolio optimisation, and make it more affordable for both small and medium sized companies and individuals alike.
The vision is that our next-generation development will help empower consumers, allowing them to undertake comprehensive life-cycle financial planning without relying on financial advisors and third parties. Our intention is that individuals will be able to choose to invest in products that are typically unavailable through traditional fund managers, including socially responsible investment vehicles, such as green funds and energy conservation, and become more socially conscious in their investment dealings.
We endeavour to help consumers and SME’s to have a free reign to choose their preferred asset universe for years to come.
• Access to sophisticated investment decision models, which are typically reserved to investment banks and large insurance companies
• Support consumers making more informed investment decisions
• A comprehensive life-cycle financial planning (e.g. education, healthcare and retirement income, etc.)
• More consistent advice based on the most up-to-date market information
• Decisions built will be build on macroeconomic factors, financial news, company performance, and market sentiment
• A system that automatically produces records of the information that has been captured for complete audit and transparency