Innovative Algorithmic Investment Advisory Services Case Study

Introduction: Exploring the Future of Financial Advisory Solutions

a. Overview

The UK's financial services market is an alive, multifaceted sector that encompasses an extensive variety of jobs, occupations, financial activities, and companies. The finance industry, that offers services that range from insurance and finance to investment and financial counselling, is vital to the financial health of the whole country. The current report will highlight the many facets of UK’s banking and finance sector while diving into the prospect of a completely novel organisation that serves the sector.

The UK's insurance and banking industry offers an extensive range of professions along with job potential customers. Consumer and investment management have prevalent roles in banking as a whole. This industry includes additional insurance offerings like life, health and real estate insurance. The field additionally encompasses investment administration, where professionals handle customers' stock, connect and other financial resources. Commercial endeavours in this field encompass a broad spectrum. Important elements include foreign exchange trade, credit card services, and loans for mortgages. Companies could additionally provide financial advisory services, which involve expert guidance on tax preparation, saving for retirement, and strategies for investment. Furthermore, financial technologies are growing more recognised for offering modern digital tools for borrowing, investing, and transactions.

b. Outline of new business idea

The proposal for an upcoming business revolves around "Algorithmic Investment Advisory Services" within the constantly evolving financial advisory sector. This innovative endeavour wants to employ the latest algorithms and machine learning to give companies and people customised making investments recommendations. The main services centre and corporate headquarters are going to be placed in the downtown area of London, in the United Kingdom. The growing demand for personalised investment advice in a market that is experiencing rapid transformation is what has prompted the choice of Algorithmic Investment Advisory Solutions. The business is going to offer data-driven putting remedies tailored for different tolerance for risk, financial objectives, and market circumstances using innovative algorithms. London, the largest financial centre globally, provides an ideal environment for this kind of endeavour.

Business and business research: Every activity related to the development and trade of products or services for profit comprise a company (Madakam, Holmukhe and Jaiswal, 2019). With the goal to achieve corporate goals and produce revenue, it includes a variety of various activities, such advertising, accounting, operations, and employee relations.

Businesses research refers to a methodical means of getting, assessing, and analysing data in attempt to enhance making decisions in an organisational setting. With the goal to collect information regarding planning for strategy and growth of the company, it involves studying market conditions, consumer behaviour, rivals, and company internal affairs.

Objectives

• To increase market share by 10% in the upcoming one year
• To boost revenue by 10% in next two year by effective efforts.
• To increase sell by 10% in next one year by implementing new marketing strategies.

2. MANAGEMENT STRUCTURE

a. Management plan

b. Future Human Resources Requirement

By doing assessment, it has been identified that 7 employees will be appointed under the following categories:

• Data Scientists: Development and enhancement of the algorithms utilised in investment evaluation requires an assortment of experts in information science and analytics.
• Software Developers: The system will need software builders to develop and sustain it, to guarantee it is simple to use, secure, and capable to perform intricate computations in immediately.
• Financial Analysts: Expert analysts in finance will assess investing opportunities, analyse market developments, and take part in the algorithmic process of decision-making.
• Customer support: To react to client inquiries, offer help, and ensure an excellent the customer experience, a team of support specialists will be needed.
• Compliance Specialists: Compliant specialists are going to keep track of legislation and regulatory shifts, ensure that that the company's operations comply with regulations, and carry out any required changes to procedures and policies (Yang and Zhang, 2020).
• Team of Marketing and sales: Marketing the services, drawing in prospective clients, and increasing the scope of the business are going to be the duties of sales and marketing specialists.
• Administrative and operational staff: The leadership of daily operations, payroll, finances, and other administrative responsibilities are going to be handled by administration and operational employees, comprising HR professionals.

3. MARKET RESEARCH

a. Overview

Market research is a methodical method of collecting, reviewing, and analysing data on an audience, particularly details about prospective consumers, rival businesses, and the industry as a whole. Making tactical choices is made easier by the capacity for organisations to understand trends in the market, customer tastes, and the landscape of rivals.

b. Defining three positive and three negative market trends in the industry

Positive market Trend:

• The financial processes are being optimised via the incorporation of advanced technologies including AI and block chain technology, increasing efficiency as well as customer service levels.
• The increase of demand for products like retirement strategy and financial encouraging is an outcome of increasing general awareness regarding financial management (Olson, et. al, 2021).
• Around the world securities markets are growing increasingly interconnected, offering up opportunities for globalisation and an extensive variety of financial choices.

Negative market Trend:

• Businesses that are compliance have difficulties because of stringent rules, resulting in complexity in operations.
• The finance industry is becoming more digitalized, which has exposed the sector to cyber security vulnerabilities such data breaches and money laundering.
• The finance sector has become overcrowded with financial service providers, which exacerbates competition and renders it harder to keep customers.

c. Potential clients

Researching the demands, wants, and desires of potential consumers is required in understanding the market in the area. Market requires is for individualised, technologically driven putting advice that fits customers' financial goals and tolerance for risks. Consumers desire an intuitive website on which they are able to monitor their investment decisions in immediate time and get quick suggest that can adapt to market changes (Bandara, et.al, 2019). Consequently, there's a demand for an answer which combines the latest technology along with conventional knowledge of finance in addition to ensuring the safety of information while providing an unparalleled user experience.

Demographic

d. Needs, wants and demand

The organisation is going to develop sophisticated algorithms and interfaces for users to meet these requirements. Consumers will be able to arrive at sound decisions because of the platform's incorporation of market information in real time. To deliver a comprehensive and client-focused strategy, customised financial planners will be readily accessible through actual interactions. The enterprise aims to create a committed clientele through providing an experience which satisfies its specific needs, wants, and desires. Knowing potential clients' demands, goals and desires are essential in the complicated fabric of the regional financial services industry. The standards of community members have their roots in their quest for security, not just in investment but additionally in solid financial guidance that is capable of withstanding market swings. Rather than just security, customers want personalised financial solutions. This converts into an appetite for personalised direction, honest discourse and readily available venues for continuous evaluation, with a focus on reassurance and confidence.

Additionally, there exists an obvious demand for creativity, especially for electronic goods which integrate into lives of individuals organically. In the modern finance the globe, immediate data analysis, easy to use internet interactions, and mobile applications are not only no longer just desired but also essential. Knowing these multifaceted desires, needs, and demands is crucial in this competitive market (Newell and Marabelli, 2020). The intended Algorithmic Financial Consulting business intends not only to accomplish but to additionally exceed these objectives. The organisation aims to establish as something rather than merely a supplier of financial products and services through providing security via encountered lawyers, customization via personalised financial guidance, and creativity via innovative digital offerings. It aims to be a trustworthy guide that assists neighbours attains stability in its finances, expansion, and moral investment.

e. Competitors’ Analysis

Analysing both the advantages and disadvantages of current and potential rivals is called competitive research. Rivals in the market that is being targeted offer an assortment of offerings, include investment portals and financial planning. It's essential for understanding the product or service products and services, pricing plans, and marketplace standing of the companies that are competing. This examination confirms the business's position as a strategic player (Visitors to the UK Spending Table, 2023). The organisation is interested in distinguishing itself in the competitive landscape by capitalising on the unique combination of personalised legal counsel and modern technology. This will enable it to satisfy all of the requirements, wants, and wants of customers.

4. BUSINESS STRATEGY

a. Overview of business strategy

A thorough plan defining the long-term objectives and goals of an organisation is commonly referred to as an operational plan. Developing choices effectively about position in the market, distributing resources, advantages in competition, and long-term expansion are all a component of it. A company's activities and expenditures are dictated by an established company strategy, thereby offering it an orientation for obtaining an edge over the competition and lasting achievement.

b. Short-term strategy

Enhancing efficiency in operation and customer satisfaction should be emphasised in the months to come. Rigid quality control procedures along with efficient management of resources can be employed to simplify company processes and ensure a perfect experience for consumers. In addition, it's essential that keep some degree of authority over the company's operations. Although adaptability and inventiveness demand a certain level of independence, retaining control over strategy guarantees unity with the overarching company goals. The emphasis will be on profitability over time as opposed to quick wealth development as soon as it pertains to creating wealth. A business can gradually develop funds over the years by offering outstanding customer service while building a following of loyal clients. Gains achieved shortly are going to be poured into the next phase of the organisation to promote expansions and further enhance choices for services.

c. Long-term strategy

The long-term plan calls for development and specialisation. One approach is to offer additional products or services, like seminars on financial topics, podcasts on investing, or specialised courses. The company could bring in more customers while gaining reputation in the finance consulting sector by positioning oneself as an education centre. Strategic alliances with banking organisations or technology companies may facilitate global expansion while opening up opportunities for growth. Another approach of making sure that the business remains far ahead of the competition is to devote funds to studies and research that looks into novel technologies like block chain technology for safe transactions or based on artificial intelligence analytics for prediction.

Marketing Mix

• Product: Algorithmic Financial Advice Solutions, the primary service on offer, offers customised financial guidance driven by sophisticated algorithms. In order to keep the company new and viable, it is going to be the primary goal on improving its algorithms and develop constantly.
• Price: Competitive pricing method will be followed for the achievement of business goals and objectives. Diverse consumer requirements and budgets will be addressed via adaptable pricing designs, incorporating services based on subscriptions and tier-based bundles.
• Place: A great deal of the products and services will be accessible on the internet, which makes them easy and readily available for consumers. Cooperation with neighbouring banking institutions may extend the business's influence.
• Promotion: The unique selling aspects of individualised, modern financial advice are going to be emphasised throughout advertising efforts. The visibility of the brand will be enhanced through initiatives related to digital marketing, interactions on social media, and educational material.

d. Financial plan

Profitability statement

The above depicted evaluation shows that business entity will get enough returns by executing the proposed business idea or plan. For enhancing sales firm needs to lay more focus on undertaking social media campaign, strategy or plan. Further, by undertaking budgetary control tools and techniques an entrepreneur can exert effectual control on expenses and thereby maximizes profitability.

5. SWOT & PESTLE ANALYSIS

a. SWOT analysis

b. PESTLE Analysis

6. DIGITAL APPLICATIONS/SOFTWARE

The addition of specialised electronic applications is crucial to ensuring effective and secure operations within every aspect of banking and financial services. Stripe, an honest payment handling assistance renowned for its robust safety features and intuitive user interface, is one more essential instrument. By enabling smooth internet transactions and protecting the confidentiality of credit card knowledge, Stripe offers consumers an easy method to make transactions internet. The use of acuity scheduling is crucial for efficiently manage meetings and bookings with Stripe. Using the help of services like automatic reminders and synchronised schedules, its simple to use website allows consumers organise solutions with ease. By streamlining the processes for payment and scheduling appointments, a combination of these tools not only increases the efficiency of operations but also significantly improves customer comfort (Langenwalter, 2020). Consumers appreciate easy booking of appointments as well as easy methods of payment, which improves overall satisfaction ratings. Furthermore, the two programmes placed considerable emphasis on security of data, utilising innovative methods of encryption for safeguarding confidential financial and private information. In spite of simplifying operations within the company, this tactical collaboration enhances confidence among consumers, a factor that is critical in the exceptionally competitive world of banking and insurance.

CONCLUSION

By summing up the report is has been the imagined financial services business has been backed by a solid foundation consisting of innovative digital technologies, ethical financial behaviour, and collaborative relationships. The organisation ensures a perfect secure surfing experience to consumers by using innovative technologies like Stripe for secure transaction processing and Acute Scheduling for effective book management. The concentration on investing ethically not only reflects current events but additionally increases confidence in investment among investors that are environmentally conscious. Collaborations with renowned institutions of finance further enhance the business's image and expand its spectrum of products. The capability of the business to adapt to shifting consumer needs while maintaining up with technological advances is an essential component of its ongoing prosperity. A pleasing interaction with clients promotes security of information and customer comfort, boosting consumer satisfaction and commitment.

References

Books and journals

Bandara, K., Shi, P., Bergmeir, C., Hewamalage, H., Tran, Q. and Seaman, B., 2019. Sales demand forecast in e-commerce using a long short-term memory neural network methodology. In Neural Information Processing: 26th International Conference, ICONIP 2019, Sydney, NSW, Australia, December 12–15, 2019, Proceedings, Part III 26 (pp. 462-474). Springer International Publishing.

Langenwalter, G.A., 2020. Enterprise resources planning and beyond: integrating your entire organization. CRC Press.

Madakam, S., Holmukhe, R. M. and Jaiswal, D. K., 2019. The future digital work force: robotic process automation (RPA). JISTEM-Journal of Information Systems and Technology Management, 16.

Newell, S. and Marabelli, M., 2020. Strategic opportunities (and challenges) of algorithmic decision-making: A call for action on the long-term societal effects of ‘datification’. In Strategic Information Management (pp. 430-449). Routledge.

Olson, E. M., Olson, K. M., Czaplewski, A. J. and Key, T. M., 2021. Business strategy and the management of digital marketing. Business horizons, 64(2), pp.285-293.

Sung, B., Wilson, N. J., Yun, J. H. and Lee, E. J., 2020. What can neuroscience offer marketing research?. Asia Pacific Journal of Marketing and Logistics, 32(5), pp.1089-1111.

Yang, L. and Zhang, Y., 2020. Digital financial inclusion and sustainable growth of small and micro enterprises—evidence based on China’s new third board market listed companies. Sustainability, 12(9), p.3733.

Online

Stephen J. Bigelow, 2023. SWOT analysis (strengths, weaknesses, opportunities and threats analysis). Online. Accessed through: < https://tinyurl.com/mvzrkn8c>Accessed on: 26/09/2023.

Visitors to the UK Spending Table, 2023. Online. Accessed through: <https://howtodoielts.com/ielts-essay-task-1-visitors-uk-spending-table/>Accessed on: 26/09/2023.

What is PESTLE Analysis? An Important Business Analysis Too, 2023. Online. Accessed through: <https://pestleanalysis.com/what-is-pestle-analysis/> Accessed on: 26/09/2023.