The Next Big Thing: The Age of Fintech, AI, and Big Data

mark Entrepreneurial investor’s 10th anniversary, we’ve compiled retrospectives of our coverage of the most critical topics in finance and investing over the past decade.

The next big thing is always elusive.

When the first Entrepreneurial investmentThe post with fintech in the title was published almost six years ago, little did we know that artificial intelligence (AI) and big data would become the “next big thing” in the financial services industry and in our efforts to research in later years. .

It has been a fascinating journey.

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The pre-AI years

Our more formal fintech coverage began in spring 2016. This included the Fintech Files series and many more presentations from external contributors.

Despite all the buzz about fintechs replacing the financial industry, we quickly realized that peer-to-peer (P2P) lending, mobile payments and robo-advisory were primarily thriving in underserved markets. So, in this sense, early-stage fintech complemented the established financial services industry.

Another takeaway today that was far from consensus when we first anticipated it is that successful fintech tends to adopt the Fin plus Tech model. The applications with the best prospects, in other words, are those that emphasize the collaboration between finance and technology in order to overcome the inherent weaknesses of each in isolation.

Seeking Insights: How Conceptually Does AI Work in Investing?

Beyond fintech, as we looked for other potential disruptors, artificial intelligence and big data also quickly entered our radar. Our series of articles on the topic in February and March 2018 was timely: it coincided with the peak interest in AI over the past decade, according to Google Trends. The installments in the series quickly climbed the list of most popular articles for the month and year and remain among the most read NO publications in this area today.

We have compiled this series along with others NO contributions and content from external authors a Fintech in Asia-Pacific: 2018 edition. This collection provides investment professionals with the basics of how AI and big data work in investing. In fact, it gave an important finding: the Fin plus Tech model has evolved into a new stage of development. Now it’s AI plus HI, or human intelligence, in this emerging era of AI investment.

AI Pioneers in Investment Management

Look for Evidence: How Does AI Work in Investing in Real Life?

Having experienced the benefits of these innovations, the pioneers of this business became convinced that AI and big data had transformative potential. The vast majority of the industry, however, still had doubts or faced practical obstacles.

What our stakeholders needed at that time was not just information but proof, proves that these fantastic technologies had useful real-world applications. We tested this hypothesis in May 2019 and received a warm reception. So we got to work and a few months later we produced a series of case studies from 11 companies. The collection explored how these companies, spanning three continents and four lines of business, applied AI and big data to improve their investment processes.

Our summary of the report’s key findings was included NO. We followed up with a post that addressed the most frequently asked questions we’d encountered from readers and audiences around the world to whom we presented the report.

These questions still come up often today, so the essay remains a good resource. Meanwhile, other contributors have peppered our coverage with compelling case studies of their own.

Want to try: How can my company apply AI to our business?

This is where the rubber hits the road and is perhaps the most exciting part of the AI ​​and big data journey. It is also becoming one of the most difficult areas to offer advice. After all, every company is unique and every individual situation is different.

With this in mind, we provide readers with high-level frameworks that they can leverage as they develop their own roadmap. The first framework is organizational and is the subject of our recent report “T-Shaped Teams”. You’ll continue to find related content as well as forecasts from luminaries on the cutting edge of fintech, AI and big data here NO. So stay tuned!

It has been an amazing experience supporting readers as they navigate this new world of AI and big data. We hope you enjoyed the trip as much as we did. Above all, we hope that the content has been informative and useful for your professional development.

Below are some of the most important ones NO articles in this area.

Journal of financial analysts Current number mosaic

Six years of Fintech, AI and Big Data Entrepreneurial investor

Seven trends in investment management: Ronald N. Kahn

In his seminal contribution to the CFA Institute Research Foundation, Ronald N. Kahn of BlackRock identified big data as one of seven major trends shaping the investment industry today. At the 2019 CFA Institute Annual Conference, he went further and narrowed down the biggest trends in big data and smart beta. This post by Paul McCaffrey considers Kahn’s analysis.

Book Review: Machine Learning for Asset Managers

Machine learning for asset managers by Marcos M. López de Prado won high praise for his quantitative analysis of machine learning applications in investing. The barriers to entry, however, are high. According to reviewer Mark S. Rzepczynski, practitioners need at least basic knowledge of programming and machine learning to benefit from this book.

Fintech: revolutionizing wealth management

Fintech is revolutionizing the financial planning industry and forcing a change in the way wealth is managed. The drive toward efficiency and agility in hands-on management benefits both clients and advisors. Marguerita Cheng, CFP, RICP, provides an overview of the changes that Robinhood and other fintech startups have brought to the wealth management business.

Artificial Intelligence, Machine Learning and Deep Learning: An Introduction

We are witnessing the dawn of the era of artificial intelligence (AI), observes Larry Cao, CFA, in the first installment of this three-part series on the topic. He explains what investment managers need to know about AI, deep learning and machine learning.

Piece for T-shaped equipment report

Portfolio managers, artificial intelligence is coming for your workplaces

Artificial intelligence (AI) is coming to the world of investing, reports Larry Cao, CFA. Given AI’s superior computing power and lack of behavioral biases, some in the investment industry and academia believe it will come to dominate the industry. Will be?

Artificial intelligence and the future of investment management

In the latest installment of his three-part series exploring the impact of AI on investment management, Larry Cao, CFA, explains why AI and big data will not replace human investors. Rather the AI ​​plus HI (human intelligence) model will rule the future of investment management.

AI-Powered Investing: High Alpha Behind the Buzz

Artificial intelligence may be one of the latest buzzwords in finance, but applying it to investment decision-making will disrupt the industry and benefit investors who harness its power, says Dan Philps, CFA.

The Rise of the Machines: Are Investment Jobs Redundant Already?

Will computers completely replace humans in financial management? Raphael Douady, PhD, Milind Sharma and Paul McCaffrey explore this question as they consider the implications machine learning may have for the investment industry.

Whin Can AI and Big Data Do for Finance?

Larry Cao, CFA, breaks down some of the key findings from his AI Pioneers in Investment Management research report.

Applying AI and Big Data to Investing: Four Frequently Asked Questions

The AI Pioneers in Investment Management The report inspired some compelling questions and answers. Larry Cao, CFA, addresses several of the greats.

Advertising piece for artificial intelligence in asset management

Using artificial intelligence to sell mutual funds: three phases

How can AI transform the way investment products are distributed? Alon Bochman, CFA, describes a case study that demonstrates that when properly harnessed and guided by human judgment, AI can create more efficient and effective processes.

The future of AI and Big Data: three concepts

Andrew W. Lo and Ajay Agrawal focused on three main concepts they hope will shape the future of AI and big data in a conversation with Mary Childs at the CFA Institute’s inaugural Alpha Summit. Larry Cao, CFA, distills his main ideas.

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All posts are the opinion of the author. Therefore, they should not be construed as investment advice, nor do the views expressed necessarily reflect the views of the CFA Institute or the author’s employer.

Image credit: ©Getty Images / MR.Cole_Photographer

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Larry Cao, CFA

Larry Cao, CFA, Senior Director of Industry Research, CFA Institute, conducts original research focused on investment industry trends and investment expertise. His current research interests include multi-asset strategies and FinTech (including AI, big data and blockchain). He has led the development of such popular publications as FinTech 2017: China, Asia and Beyond, FinTech 2018: The Asia Pacific Edition, Multi-Asset Strategies: The Future of Investment Management and AI Pioneers in Investment Management. He is also a frequent speaker at industry conferences on these topics. During his time in Boston, doing graduate studies at Harvard and as a visiting scholar at MIT, he also co-authored a research paper with Nobel laureate Franco Modigliani that was published in the Journal of Economic Literature by the American Economic Association. Larry has over 20 years of experience in the investment industry. Prior to joining CFA Institute, Larry worked at HSBC as a Senior Director for the Asia Pacific region. He began his career at the People’s Bank of China as a USD fixed income portfolio manager. He also worked for US asset managers Munder Capital Management, managing US and international equity portfolios, and Morningstar/Ibbotson Associates, managing multi-asset investment programs for a global financial institution clientele. Larry has been interviewed by a wide range of business media, including Bloomberg, CNN, the Financial Times, the South China Morning Post and the Wall Street Journal.

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