Fintech this week: Data privacy is already an illusion, the fate of a maturing robo-advisor market, and the dangers & benefits of wide-scale passive index investing. Happy Thanksgiving!
Is Indexing Worse than Marxism? (The Wall Street Journal, Op-ed)
As investor money flows from active to passively managed funds, fund managers warn of the dangers of widespread index investing, where individuals invest in companies because they’re part of an index, not because they see strong growth and profitability in them. This columnist disagrees, and with active traders growing as well prices are still determined by company fundamentals.
2016 Will be Remembered as the Year When Data Privacy Was Killed (Let’s Talk Payments)
Three of the largest US tech companies know basically everything about you. Will 2016 mark the end of data privacy, or is it already dead?
What We Learned About Robo Advisors in the Last 19 Months (Let’s Talk Payments)
As the robo-advisor market matures, it faces new growing pains and new opportunities. The industry’s narrative has changed too, as more incumbent wealth management companies have built their own robo-advisors. Despite huge growth, robo-advisors continue to struggle with high acquisition costs and a client base that has little money to invest.