Algorithms is now playing a crucial rule in innovating the Fintech industry. Nowadays, Fintech startups are implementing new technologies to provide low-cost financial services. LeadingRobot recently launched an automated hedge fund using blockchain technology. The automated hedge fund buys credits from online lenders and move investors funds based on risk tolerance and investment horizon. Unlike traditional hedge fund firms that charge a certain performance fee and management fee, LendingRobot only charges a 1% management fee and no performance fee.
Clearly, new technologies enable Fintech startups to disrupt traditional banking and financial service industry. At the same times, new technologies allow customers from different financial situations to manage their money at a very low cost comparing to traditional financial services. Despite some risks related to new regulatory agenda and managerial changes within the startups, companies providing Robo-advisors or automated hedge fund services have highly chance to succeed. In particular, millennials tend to adopt these new Fintech services because they provide lower cost for more people and are easy to use as mobile phone apps. Moreover, a high mobile penetration rate in the US provides a large group of audience for Fintech startups.
Fintech Startup LendingRobot Uses Blockchain To Launch Automated Hedge Fund