How do you think relying on Artificial Intelligence in effective fund management of client’s portfolio will benefit or will it still be considered as a tool which cannot think beyond human intelligence? It is a parody of sort as professional fund managers cannot have enough of all the stress from the markets that they have a humanoid competing with them! Well, times are changing, robotics is not just limited to science fictions and matter of being metal pieces in art Galleries, they too have evolved from a mere sketch in pen and paper to perform activities which a human can do and in a much better way.

The Invisible One

Assisting fund managers in their operations, placing funds of clients in the top performing financial products, these nonphysical forms of automated software are often termed as the invisible kinds who are out there to transform the operation of a fund house more efficiently and effectively. Now most of us are aware what the Black rock did in replacing AI doing the jobs of the Fund managers, well it is a win some lose some in this field to test the technology. They lost out in a bad trade due to an incorrect algorithm and went bankrupt.

Now should we rely on the AI?

It is not about the win of the human mind over technology, it is just about being cautious not to rely too much on automated biases, which is nothing but too much dependence on technology and its outcome, increases the acceptance of the outcomes. Similar is the experience when it comes to airline industry where there is a lot of experimenting with AI, that pilots avoid major accident related precautions as they are too busy in relying on how an instructionless flight cockpit work, which has resulted in huge loss of human life which cannot be ever, ever replaced.

The dependence on automated systems makes one believe that this is the ultimate step which cannot go wrong and all is well. With Artificial Intelligence Fund managers coming at the behest, they pose a new form of risk both for the investors, as well as the fund houses that are addicted to the automation bias. Though the AI can pick the right kind of investment product they can never match the human mind which has this intuitive capacity to study the entire stock markets within a couple of minutes and save the client from making an incorrect decision.

Everybody has a right to live happily in this world, which is, unfortunately, being thwarted by the state of poverty for few. It is to help these unfortunate ones, the concept of Microfinance arose, in where, small amounts of financial assistance, be it in the name of loans, insurance or savings scheme, is offered to help them able to provide better for them, their family, and their dreams! While every nation in this world is afflicted by some levels of poverty, the situation is critical in the developing nations and therefore, this concept can parlous benefit a majority of the people there, certainly!

To better understand this concept, let us understand the benefits it could offer to the society!

  • Ending poverty

Not everyone you see begging in the streets feels satisfied to do so; a majority of them is secretly awaiting the right chance to end their poverty, which can very well happen with this concept of Microfinance. Providing them with little money, which is so satisfying for them to start a business or get an education can lead them into the path of prosperity by putting an end to their unwanted poverty forever! Since traditional financial institutions would not offer them the assistance, the rescue comes only in the form of Microfinance!

  • Well-developing community

If the people of the community are provided with enough means to fulfill their practical dreams that would lead to the growth and development of the community since negativity has been put down forever.

  • Reduced crime rates

Lack of education and money are the main reasons for most of the crimes happening in the world, which could be very well overcome with the concept of Microfinance and therefore, a fearless community, where crime rates are very much lesser is seen on the rise!

  • Accessibility

A financial emergency, unfortunately, never comes with a prior appointment, which is more critical in the case of unprivileged ones. These poverty-stricken people do not have the opportunity to seek the conventional financial institutions to thwart the danger and therefore, end up succumbing to the emergency, which sometimes, cause them their dear lives. With the concept of Microfinance and the offering Microfinance institutions, access to the financial assistance has increased for these people, which means more dear lives will be protected, appreciably!

  • Increased job opportunities

Through the concept of Microfinance, if the job opportunity is provided for an individual, say helping him/her to start a small business, such as setting up of a small condiment shop, he/she might create additional job opportunities, such as recruiting an assistant to help in the daily chores. This is a small example how Microfinance can create more job opportunities thereby shrinking the unemployment factor, greatly!