What is the background of your company? What do they do? Who are their competitors?
How does this company use technology to their advantage? Why are they considered a FinTech company?
Why is this company exemplary in the FinTech space? What are their strengths and weaknesses?
B uses algorithimic finance and automated scripts to implement a customers trading strategy based on risk tolerance.
Beacuse an individual investor's psychology does not come into play, mistakes are avoided.
Fees are lowered because humans are not invovled.
Weakness is that over time, if all robo-advisors are trading on ETFs could increase the danger of systemic risk as in flash crash and also have law of minimizing returns because everyone is using the same alogrithms.
random walk and efficient theory says that only systemic risk rewared stock prices.
diversifiable risk (unsystemic risk) can be difersified away. So, only the undiversifiable system risk will affect risk premiums. system risk can only be mitigated by being hedgfeed
What is the prognosis for this company? Where do they expect to be in the future?
robo advising is the future