What’s Robo-Advising? And How Can Entrepreneurs Get Involved?

The Business Brainstorm podcast recently caught up with Stephen Mathai-Davis, founder and Ceo of Q.Ai, a robo-advising firm that uses AI and Big Data to make investment decisions on behalf of its users. The robo-advising industry was worth a reported $987 Billion in 2020 and projected to be worth $2.4 Trillion by 2024.  

“Since the creation of apps such as Robinhood,” says Mathai-Davis, “retail investors have never been more active. With the age of the average retail investor becoming increasingly younger and this age group’s acceptance of Robo-advisors, there is a massive opportunity in the space.”  

Mathai-Davis launched Q.Ai in 2019 as a response to an overly-saturated mutual funds market that left the average retail investor at a disadvantage because they did not have the tools and knowledge that professional money managers have. Q.Ai puts power in its users’ hands by offering thematic investing –using AI to build investment packages around unique themes such as “Back to school kits” which have companies like Footlocker in their portfolio. 

“We’re using multiple deep learning algorithms,” says Mathai Davis, to create “strategies that can go into your unique brokerage account that we manage for you, called investment kits.”

Entrepreneurs that want to target this demographic will need to focus on building a trendy brand and solid user experience. According to Mathai-Davis, “The average young retail investor is focused on user interface and brand more than the previous generation of investors. Platforms that have these components are in the best position to have sustained growth over a long period of time.” 

The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.

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