Great Expectations: Customer Demands Are High, But The Price Of Ignoring Them Is Higher

John Bartleman, President and CEO and a member of the Board of Directors of TradeStation Group Inc. will be speaking at the upcoming Benzinga Fintech Deal Day & Awards. Mark Nov. 13 on your calendar for the must-attend gathering in the fintech industry!

With the perfect storm of geopolitical events and economic uncertainty, heightened market volatility is now the norm. At the same time, younger investors are quickly coming online and comprising a larger share of the trading world. They’re looking for insights to help guide them through market fluctuations with a user experience that’s as smooth as buying groceries online or sending peer-to-peer payments through consumer money-transfer apps. Technology firms that support investing and trading need to step up quickly to meet new expectations or risk falling behind.

Investors are demanding a personalized experience based on curated recommendations. For example, recent research cited by Financial Advisor found that investors want personalized communications from their advisors: nearly a third said they wanted customized analysis of their investing habits, personalized information, and ideas for investment vehicles that would help them meet their goals.

A Modern UX

A trading platform with a smooth user experience is critical. From a client experience perspective, this means taking out structural inefficiencies from trading. We need to recast the legacy of disjointed trading experiences in which investors transact across several platforms and manage risk across several financial institutions. Now, everything needs to happen quickly and seamlessly under one umbrella, instead of across multiple disparate—and sometimes clunky—platforms interacting in a sub-optimal way.

Beyond user experience hurdles, working across several systems amplifies security risks and administrative burdens that cost investors precious time and money. It also throws in roadblocks that hinder access to a broader range of asset classes.

A wider array of asset classes, however, is what younger investors are demanding. According to recent research from Bank of America, 75% of investors between the ages of 21 and 42 don’t believe traditional stocks and bonds will provide them with above-average returns.

Different skill sets

The digital-first, self-directed nature of younger investors means they’re betting on a wider variety of assets. This includes options, futures, digital assets (including cryptocurrencies) as well as micro and nano futures contracts and zero-day options. Easy access to these products requires new capabilities to enable friction-free trading. Since these investors are typically individuals using minimal human guidance, it’s up to trading toolset providers to offer in-platform personalized trading insights and advice.

AI And APIs

Two key foundational tools will likely power the trading customer experience of the future. These include application programming interfaces (APIs) and artificial intelligence (AI). APIs—protocols that allow software components to interact with one another and share data—allow for more seamless trading experiences and, when combined with other fintech platforms, may empower traders to access the latest and greatest technology available with ease. 

In an API-driven environment, data transfers happen automatically, allowing tools such as AI models to deliver personalized content. These tools can ensure that historical market and stock data are analyzed alongside investor account information. The result will be a best-of-breed customized experience. What’s more, large-language models like ChatGPT could further improve the quality of customized support and help execute trades.

The ‘Amazon effect’ around digital commerce transactions has forever changed customer expectations. Clients now, at every level, expect top-line personalized, and proactive problem-solving at the push of a button. These demands have necessitated a comprehensive, ‘under one roof’ approach. A comprehensive, intelligent trading toolkit may help investors minimize unnecessary time, fees and complexity.

Broader access to sophisticated tools has effectively flattened the technology curve between institutions and individual investors. This means a higher bar for personalization, transparency and service levels among both groups. This trend will only further intensify as AI and other technologies accelerate at a rapid clip. Leading technology providers need to get ahead of this by investing in concierge-type technology and personalized service offerings that are now must-haves in a competitive marketplace.

John Bartleman is President and CEO and a member of the Board of Directors of TradeStation Group Inc. He will be speaking at Benzinga’s Fintech Deal Day event on the panel Future-Proofing Trading: Embracing Innovation and Trends for Success. Mark Nov. 13 on your calendar for the must-attend gathering in the fintech industry!

John Bartleman has been TradeStation Group’s chief executive and a member of its board of directors since April 2016. He joined the company in 1999 as a product manager. Prior to being named chief executive Mr. Bartleman served in several TradeStation Group roles, including Vice President of Product Management, Chief Growth Officer and Vice President of Brokerage Operations (2012-2016), as well as TradeStation Securities’ President (2015-2017) and Vice President of Product Management (2009-2014). Mr. Bartleman has also been the chief executive of TradeStation Crypto, Inc. and You Can Trade, Inc. since their formations (in 2018 and 2019), and serves as a board member of TradeStation Group’s operating subsidiaries. Prior to joining the company Mr. Bartleman was a Senior Research Systems Analyst at Templeton Global Investors, Inc. (1995-1999). He has a bachelor’s degree in International Relations from Florida International University and an MBA degree from Nova Southeastern University.