1.1 Problem Statement
Traditional finance has long struggled to keep pace with the rapidly changing dynamics of modern markets. The critical issues faced by the traditional financial sector include:
Lack of Real-Time Insights: TradFi relies on outdated models and manual processes that struggle to provide real-time insights into asset prices, market trends, and sentiment analysis.
Slow Decision-Making: The traditional financial system is hampered by the slow decision-making processes, resulting in missed opportunities and ineffective risk management.
Inefficient Asset Management: Portfolio optimization and asset management are often conducted manually, leading to suboptimal performance and limited agility.
Risk Mitigation Challenges: Risk management in TradFi is often reactive, and the lack of predictive capabilities leaves investors exposed to unexpected market fluctuations.
Transparency and Security Concerns: Centralized financial systems face ongoing challenges related to security, transparency, and trust, leading to increased vulnerability to fraud and inefficiency.
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