Visualizing the Rise of Investment Tech
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Investors and wealth managers are always looking to capitalize on their investments—and the latest innovations are arming them with more efficient tools to get there.
Fintech solutions are increasingly being adopted among the digitally active population, as 64% of surveyed wealth managers consider digitization essential in 2019.
Today’s graphic from Raconteur highlights the benefits of investment technology, and touches on shifting sentiments in human vs. digital interactions. Where do investors and wealth managers see the next epoch of investment fintech heading?
Fantastic Features: Top Benefits
According to a TD Ameritrade survey of 1,000 investors, a whopping 90% consider getting tailored investing advice to be the most important feature of any tech tool. In second place, 52% place value in easy access to their data.
Here are the other benefits at top of mind for investors when it comes to investment tech:
- 45% seek the best possible returns
- 44% look for customized, quick, and simple analysis
- 39% are interested in customized portfolios
- 39% want the benefit of personalized budgets
- 38% desire regular suggestions for optimizing financial health
But how well are these applications being adopted in everyday investment scenarios?
The Fintech Boom by the Numbers
Investment apps such as RobinHood have drastically risen in popularity, but still lag behind more mainstream segments in the fintech space:
Fintech Categories Ranked by Adoption Rate, 2015 to 2019
|Category||2015 Adoption Rate||2017 Adoption Rate||2019 Adoption Rate|
|Money transfer and payments||18%||50%||75%|
|Savings and investments||17%||20%||34%|
|Budgeting and financial planning||8%||10%||29%|
Borrowing apps have the lowest global usage rates—only 27% of the digitally active global population—whereas nearly 75% have adopted money transfer and payment apps.
Human vs Machine: The Customer Experience
Do humans or machines have the edge in managing your investments?
The aforementioned survey by TD Ameritrade also asked investors which of the following are performed better by each group, with mixed results:
|👨 Humans perceived as better||🤖 Robots perceived as better|
|• Ability to chat about questions or investment concerns||• Info in one place that can be accessed at any time to inform best solutions
|• Investment experience||• Best returns|
|• Affordable investment solutions or advice||• Ability to optimize returns and minimize taxes
|• Regular suggestions on how to optimize financial life||• Quick, simple analysis tailored to unique financial situation
|• Personalized budget development||• Custom portfolio with regular updates|
When it comes to managing tasks such as calculations, updates, and portfolio optimization, the majority of investors consider a computer to be better suited to the tasks at hand. However, when they are discussing investment concerns, personalization, or financial advice, the majority of customers prefer a human opinion.
Interestingly, 81% of U.S. investors believe that investment technology could never replace the “human touch”, compared to 70% of European investors or 64% in Asia.
Wealth Managers are Going Digital
Over time, wealth managers have grown to embrace the digitization of their industry.
The proportion of surveyed high-level executives who see digitization as essential to the industry jumped from just 25% in 2016 to 64% in 2019.
In another recent survey about views on most impactful types of fintech apps, more than 68% of wealth managers agreed that robo-advisors are among the most important developments, with AI-based investing apps following closely behind at 45%.
Towards a More Personalized Future
At the end of the day, investors want better, more personalized advice at their disposal—and for that advice to generate more profitable returns. Along with their wealth managers, investors are increasingly interested in solutions that can simplify portfolio management.
Digitization and automation of manual processes have been a welcome change for many industry professionals. While investment technology is still in early stages, wealth managers can personalize investor experiences through the adoption of tech─and increase their chances of future success by maintaining a seamless customer experience.
How Do Esports Companies Compare with Sports Teams?
With some esports companies more valuable than traditional sports teams, we visualize esports vs sports in franchise value.
How Do Esports Companies Compare with Sports Teams?
Are esports on the same level as “real” sports? These comparisons range from tricky to subjective, but the monetary value of companies speak for themselves.
The world’s largest esports companies have definitely risen to the occasion. Valued at almost half-a-billion dollars, they’ve started to pass some sports franchises in value.
In the above graphic, we compare Forbes’ valuation of the top 10 esports companies in 2020 against median franchises in the “Big Four” major leagues (NFL, MLB, NBA, and NHL). Despite competitive gaming’s rapid growth, there’s still a long way left to go.
Esports Impress but NFL Teams Reign Supreme
The world’s top esports companies have grown quickly, and impressively.
As of 2018, there was only one esports company worth more than $300 million in valuation. By 2020, four of the top 10 were valued at more than $300 million.
|Esports Company||Games with Franchises||Value (2020)|
|TSM||League of Legends||$410M|
|Cloud9||League of Legends, Overwatch||$350M|
|Team Liquid||League of Legends||$310M|
|FaZe Clan||Call of Duty||$305M|
|100 Thieves||League of Legends, Call of Duty||$190M|
|Gen.G||League of Legends, Overwatch, NBA 2K||$185M|
|Enthusiast Gaming||Call of Duty, Overwatch||$180M|
|G2 Esports||League of Legends||$175M|
|NRG Esports||Call of Duty, Overwatch||$155M|
|T1||League of Legends||$150M|
When compared to traditional sports valuations, esports companies have already reached major league hockey status.
TSM, the world’s most valuable esports company in 2020, has a higher valuation than five NHL franchises. In fact, four esports companies were estimated to be more valuable than two NHL franchises, the Florida Panthers and Arizona Coyotes.
But other sports leagues are further away. While the median value of an NHL franchise in 2020 was $520 million, the MLB, NBA, and NFL all saw median values of over $1.6 billion.
|Esports vs. Sports Franchises||Lowest Valued Team||Highest Valued Team||Median|
|Esports (Top 10)||$150M||$410M||$188M|
Differences in Esports vs Sports Structures and Growth
Try as we might to make a clean apples-to-apples comparison between esports and traditional sports teams, there are significant differences in the business models to consider.
For starters, major esports companies own multiple franchises and non-franchise teams across many games. Cloud9 owns both the eponymous Cloud9 League of Legends franchise and the London Spitfire Overwatch franchise, for example, as well as non-franchise teams in Halo, Counter Strike: Global Offensive, Fortnite, and other games.
The revenue streams for esports companies are also extremely varied. Companies like TSM, 100 Thieves, FaZe Clan and Enthusiast Gaming made 50% or more of their revenue from outside of esports, having instead expanded into diverse companies with an equal focus on content creation and apps.
But it’s this greater ability to diversify, and the still-increasing size of esports fandom, that continues to grow esports valuations. In fact, TSM’s estimated 2020 revenue of $45 million is less than half of the Arizona Coyotes’ estimated revenue of $95 million, despite a $100+ million valuation difference in favor of TSM.
That’s why the continued maturation of esports is only going to make traditional sports comparisons easier, and closer. Instead of having to pit companies against franchises, direct league-to-league comparisons will be possible, and the differences will likely shrink from billions to millions.
Global Stars: The Most Innovative Countries, Ranked by Income Group
From Switzerland and China to Vietnam and Tanzania — here are the world’s most innovative countries, taking income per capita into account.
The Most Innovative Countries, Ranked by Income Group
Innovation can be instrumental to the success of economies, at macro and micro scales. While investment provides powerful fuel for innovation—the relationship isn’t always straightforward.
The 2020 ranking from the World Intellectual Property Organization (WIPO) reveals just that.
The above map breaks down the most innovative countries in each World Bank income group, based on data from WIPO’s Global Innovation Index (GII), which evaluates nations across 80 innovation indicators like research and development (R&D), venture capital, and high-tech production.
While wealthier nations continue to lead global innovation, the GII also shows that middle-income countries—particularly in Asia—are making impressive strides.
The economic and regulatory spheres within countries can have an enormous impact on their level of innovation—and vice versa, as innovation in turn becomes an economic driver, stimulating further investment.
The positive feedback loop between investment and innovation results in the success of some of the top countries in the table below, which shows the three most innovative countries in each income group.
|Income Group||Group Rank||Country (Overall Rank)|
|High||1||🇨🇭 Switzerland (#1)|
|High||2||🇸🇪 Sweden (#2)|
|High||3||🇺🇸 United States of America (#3)|
|Upper Middle||1||🇨🇳 China (#14)|
|Upper Middle||2||🇲🇾 Malaysia (#33)|
|Upper Middle||3||🇧🇬 Bulgaria (#37)|
|Lower Middle||1||🇻🇳 Vietnam (#42)|
|Lower Middle||2||🇺🇦 Ukraine (#45)|
|Lower Middle||3||🇮🇳 India (#48)|
|Low||1||🇹🇿 Tanzania (#88)|
|Low||2||🇷🇼 Rwanda (#91)|
|Low||3||🇲🇼 Malawi (#111)|
Switzerland, Sweden, and the U.S. are the top three in the high-income group. Considering that Switzerland has the second-highest GDP per capita globally, it is not a surprise leader on this list.
Upper middle-income countries are led by China, Malaysia, and Bulgaria. Note that China far surpasses other nations in the upper-middle-income group ranking, reaching 14th spot overall in 2020. Others in the income group only appear in the overall ranking after 30th place.
Below are several income group leaders, and some of their key areas of output:
- Switzerland: First in Knowledge Creation, second in Global Brand Value
- U.S.: First in Entertainment and Media, Computer Software Spending, Intellectual Property Receipts
- China: First in Patents Registered
- Vietnam: Second in High-Technology Net Exports
- India: First in Information and Communication Technology Services Exports
- Tanzania: 23rd in Printing and Other Media
Shining a Light on Global Innovators
Since 2011, Switzerland has led the world in innovation according to this index, and the top five countries have seen few changes in recent years.
Sweden regained second place in 2019 and the U.S. moved into third—positions they maintain in 2020. The Netherlands entered the top two in 2018 and now sits at fifth.
Here’s how the overall ranking shakes out:
|3||United States of America||60.6||High|
|11||Hong Kong, China||54.2||High|
|34||United Arab Emiratesx||42.4||High|
|42||Viet Nam||37.1||Lower Middle|
|47||Russian Federation||35.6||Upper Middle|
|56||Costa Rica||33.5||Upper Middle|
|57||North Macedonia||33.4||Upper Middle|
|59||Republic of Moldova||33.0||Lower Middle|
|60||South Africa||32.7||Upper Middle|
|67||Iran (Islamic Republic of)||30.9||High|
|74||Bosnia and Herzegovina||29.0||Upper Middle|
|88||United Republic of Tanzania||25.6||Lower I|
|90||Dominican Republic||25.1||Upper Middle|
|92||El Salvador||24.9||Lower Middle|
|98||Trinidad and Tobago||24.1||High|
|100||Cabo Verde||23.9||Lower Middle|
|101||Sri Lanka||23.8||Upper Middle|
|105||Bolivia (Plurinational State of)||22.4||Lower Middle|
|112||Côte d’Ivoire||21.2||Lower Middle|
|113||Lao People’s Democratic Republic||20.7||Lower Middle|
|118||Burkina Faso||20.0||Lower I|
Nordic countries like Sweden, Denmark, and Finland continue their strong showing across innovation factors—like Knowledge Creation, Global Brand Value, Environmental Performance, and Intellectual Property Receipts—leading to their continued presence atop global innovators.
But the nations making the biggest moves in GII ranking are found in Asia.
China, Vietnam, India, and the Philippines have risen the most of all countries, with all four now in the top 50. China broke into the top 15 in 2019 and remains the only middle-income economy in the top 30.
In 2020, South Korea became the second Asian economy to enter the top 10, after Singapore. As the first Asian country to move into the global top five, Singapore joined the leaders in 2018, and now sits at 8th place.
In another first for 2020, India has now broken into the top 50.
Innovation Input & Output: The Overachievers
While annual rankings like these confirm the importance of a robust economy and innovation investment, variations in the relationship between input and output are not uncommon.
The correlation between wealth and innovation isn’t always straightforward, and neither is the connection between innovation input and output.
Below is an overview of the GII inputs and outputs, as well as several of the world’s overall leaders in each pillar.
Input variables can be characterized as factors that foster innovation—everything from the quality of a country’s university institutions to its levels of ecological sustainability.
|Input Pillars||Input Examples||Input Leaders|
Human Capital & Research
Venture Capital Deals
7. Hong Kong, China
10. South Korea
Output factors include innovation indicators like the creation of new businesses, and even the number of Wikipedia edits made per million people.
|Output Pillars||Output Types||Output Leaders|
|Knowledge & Technology|
Creative goods and services
National feature films
Entertainment and media
3. United Kingdom
10. South Korea
Countries with impressive innovation outputs compared to input levels include:
- China: 26th in inputs, but sixth in overall innovation outputs
- Netherlands: 11th in innovation input, but fourth across outputs
- Thailand: 48th in overall input, first in business R&D
- Malaysia: 34th in overall input, first in high-tech net exports
Innovation Fuel Reductions Up Ahead?
Although financial markets have ignited, the economy as a whole has not fared well since lockdowns began. This begs the question of whether a steep decline in innovation capital will follow.
In response to the 2020 pandemic, will spending on R&D echo the 2009 recession and aftermath of 9/11? Will venture capital flows continue to decline more than they have since 2018?
Because innovation is so entwined with the economic growth strategies of companies and nations alike, the WIPO notes that the potential decline may not be as severe as historical trends might suggest.
No Stopping Human Innovation
Thankfully, innovation opportunities are not solely contingent on the level of capital infused during any given year. Instead, the cumulative results of continuous innovation stimuli may be enough to maintain growth, while strategic cash reserves are put to use.
What the GII ranking shows is that inputs don’t always equal outputs—and that innovative strides can be made with even modest levels of capital flow.
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