Problem Statement
Traditional investment models are fraught with challenges that hinder widespread participation and limit the potential for financial growth and inclusion. These challenges include:
Limited Accessibility
Conventional investment opportunities often require significant capital, restricting access to a select few investors and leaving many individuals excluded from potential wealth-building opportunities.
High Barriers to Entry
The complexity of traditional investment processes, coupled with regulatory constraints and administrative hurdles, creates barriers to entry that deter aspiring investors from entering the market.
Centralized Control
Traditional financial systems are characterized by centralized control, where a select group of intermediaries governs investment platforms, often resulting in opacity, inefficiency, and lack of accountability.
Geographical Limitations
Geographical and socio-economic barriers can prevent individuals from accessing investment opportunities in different regions or high-growth markets. This inaccessibility prevents a diverse range of investors from benefiting from real estate investments and limits overall market participation.
Lack of Transparency
Transparency is often lacking in traditional investment models, with opaque fee structures, hidden costs, and limited access to comprehensive data, leaving investors in the dark about the true performance and risks associated with their investments.
Limited Market Access
Many investment opportunities are geographically restricted or limited to accredited investors, excluding a vast majority of individuals from participating in global markets and accessing diverse asset classes.
Slow Settlement Times
Conventional settlement processes are plagued by inefficiencies and delays, leading to extended settlement times, increased counterparty risk, and missed investment opportunities.
Risk of Intermediary Failure
Traditional investment platforms rely on intermediaries such as banks, brokers, and custodians, introducing the risk of intermediary failure, fraud, and security breaches, jeopardizing investor funds and trust.
Inefficient Market Infrastructure
Outdated market infrastructure, legacy systems, and fragmented ecosystems impede the seamless transfer of assets, hindering liquidity, transparency, and market efficiency.
Limited Innovation
Traditional investment models often lack innovation and fail to adapt to evolving market trends, technological advancements, and changing investor preferences, stifling growth and innovation in the financial sector.
Last updated