Technological advancement helps improve personal finance management, but it does not eliminate the need for a certain level of financial literacy. Digitalization can facilitate spending and saving decisions, as well as how to diversify our financial portfolio. However, the final decision on where to invest rests with individuals, who must make it prudently, assessing the relationship between risk and return and the target investment timeframe. And if possible, with the best professional advice available. <\/p>\n
Technology makes it easier to access more information and increases agility when managing a portfolio. More effective management requires a certain level of digital proficiency, but it is increasingly necessary in times as complex as the present. This greater relative complexity compared to the past stems from three new factors: geopolitical uncertainty, negative interest rates, and low inflation. Recent regulatory changes have focused on increasing investor protection. There is now more transparency and greater competition in offering investment services. All of this has reinforced good service at a lower price. However, it has not achieved greater simplicity. Strict regulation and financial complexity itself do not make it easier to make financial decisions. <\/p>\n
It is estimated that there are currently more than $71 trillion in assets under management at the institutional level worldwide. Its strong growth during the crisis is a good reflection of investors’ increased awareness of the need for professional assistance when making financial decisions. However, the data also show that this development has not gone hand in hand with an improvement in financial literacy. Reversing this represents a major challenge for society. <\/p>\n