How chatbots can make stock trading easier for small investors
In this article we are going to focus on how chatbots can improve the process of stock trading.
In the past we have explored how chatbots can be used by the banking industry; today we’ll dive a bit deeper and focus on a smaller, but very valuable, piece of the puzzle: stock trading.
It is a fast-growing area where traditional banks are facing competition from fintech upstarts and where time and speedy communications are of the essence. Markets can change quickly and be able to manage a portfolio on the go is an asset highly valued by serious investors.
Time is money
Financial markets have been growing in speed and complexity every year and today investors can choose between thousands of stocks from all over the world; with this abundance of information, it is hard for an individual investor to keep up with what is going on. Large investment firms have an inherent advantage because they have the resources and time to monitor a wide range of companies, indexes, and market trends.
Individual investors, on the other hand, are generally short of time and most of them can only check news and updates during breaks from work and in the evening. This puts them at a disadvantage since the information they miss results in missed opportunities and, for some, can make it not worthwhile to engage in stock trading in the first place.
For banks, investors that miss out on opportunities to trade, and people that decide not to trade at all because they don’t have the time to do so are also a missed revenue opportunities. To encourage trading, some banks and fintech firms have started to integrate trading services and updates into their own apps, but as we noted in a previous post, banking apps are not ideal for everyone and aren’t opened as often as messaging apps.
An easy-to-use solution
For individual investors, the ideal on-the-go tool for trading would need to be one that is easy to use, fast and flexible. Banking and trading apps fulfill part of this description as they often allow people to monitor indexes and receive some alerts but, especially for new users, they are often hard to use and require a lot of setups.
High-value investors often bypass this problem by having personal bankers and assistants that they can simply message to receive information and make decisions, but these services are out of the budget of most people and still require someone available on the other side to work.
Messaging apps, when combined with chatbots, provide an ideal solution. These apps are a tool people are accustomed to using, open multiple times a day, and can automatically send notifications to a range of connected devices, from smartwatches to computers. Chatbots can connect to these apps and allow users to request information and send orders using natural language, providing an easy and fast way to operate.
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