In these exceptions, which may be a one-time transfer of funds from a 401k to an IRA or to a mutual fund, the financial services firms need to create ethical safeguards to ensure the confidentiality and actual funds themselves are secure. The bottom line is that the financial services firms need to create a highly secure, customized and tightly integrated series of web-based online trading applications and tools to make sure individual investors can work to attain their investment goals.
Improvements for Online Trading as a Self-Service Strategy
There are many opportunities for improvement for Web-based online trading tools, starting with even stronger security specifically on the area of inter-fund transfers and the recording of transactions. Today many of these Web-based online applications store history only for 12 months, and do not provide an audit record back three or five years of all in-account transactions. This lack of multi-year audit capability is a major disadvantage.
The second major area of improvement is in creating more uniformly high value content for the individual investors to make more informed and prudent decisions. Coupled with this issue is the need for better life cycle planning tools specifically aimed at making the decisions of individual investors more clearly made. This area of content and guidance needs major work in the industry of financial services firms today.
The third major area of improvement needed is in the development of better guided selling applications that can be modified to support guided investing strategies by individual investors. This would be a major improvement and would alleviate incorrect decisions by many investors.
Conclusions and Recommendations
It is inevitable that online trading applications will dominate the financial services firms and the industry...
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