Delivering the final keynote talk at this year’s Fintech Summit, Dann commenced by introducing Public, an investment platform that started off in 2019 disrupting the industry by being the first to offer fractional stock trading.

Launched in the United States, Public is a multi-asset investing platform which has rapidly expanded its services, now serving millions of members. Recently, it made its debut in the UK, providing British investors with access to US stocks alongside low FX fees and an advanced set of tools and data.

It’s a move that’s been largely considered as bold given the current cost-of-living crisis and geopolitical situation being two large factors among many contributing to a hostile investment environment – famously, Public rival Robinhood had plans to launch in the UK and Europe before deciding against it.

The arrival of a big player like Public as well as smaller-scale investment platforms from across the Atlantic, such as WeBull, suggests a renewed interest in UK neo-brokers. But why?

In this feature we’ll not only cover Dann’s talk from the Summit regarding the rise of AI-assisted investing based on their insights in the US, but also Public’s expansion into the UK, a topic that Dann elucidated on through a one-to-one chat with DIGIT.

Expanding Public into the UK

Bibas shed light on the rationale behind Public’s entry into the UK market. According to him, the UK’s unique blend of attributes makes it an enticing prospect for the company.

He said: “As well as being an English-speaking market of 70 million people with a more forward-looking regulatory environment, we see the UK consumer as very avant-garde, very forward-looking, very embracive of new digital technologies.”

Plus500, eToro, AvaTrade, Pepperstone… we could go on. There’s no shortage of platforms right now tussling within the individual investor platform space. With that in mind, how does Public differentiate itself?

With this in mind, Bibas said: “Right now, Public offers US stocks to people in the UK – Public is the best place to invest into US stock from the UK. The reason for that is we’ve done a lot of work to make sure that firstly, we offer zero commission trading during US market hours.

“Secondly, a lot of other platforms will discount the price of trading, but then look to monetize FX fees, other ancillary fees, whereas Public has done a lot of work to make sure our currency conversion fees are low and affordable for customers.

“Finally, we have a wide suite of data and tools, which quite frankly are miles ahead of other platforms in the UK.”

While Public’s growth in its native US has undoubtedly been impressive, time will tell if the company’s move into the UK will serve to not only disrupt the UK market, but provide anchor for Public to move through Europe and expand its footprint.

Unlocking the Potential of AI in Investment

In his talk delivered to a packed Biosphere at DIGIT’s tenth Fintech Summit, Bibas underscored that AI, particularly AI research tools, is at the forefront of reshaping the investment landscape.

Public recently rolled out Alpha to its US-based members, an AI investment tool powered by OpenAI GPT-4, designed to provide more context to customers, especially retail investors, in making informed decisions. He described it as having “a knowledgeable investment analyst in your pocket, available 24/7, capable of swiftly processing vast amounts of data.”

With regards to looking at the big picture benefits of generative AI-powered investment, Bibas claimed to have 15 good reasons. Fittingly, he asked Chat-GPT to assess them and pick the three most salient, to which it stated:

1 – Data-Driven Insights: Bibas emphasised how AI tools grant access to a plethora of data sources, democratising financial information. He noted, “More data, fewer barriers, and more informed decisions.”

2 – Timesaving: AI tools significantly reduce the time required for research, claiming that pulling up data from dozens of sources took GPT 23 seconds, with Bibas conceding that a human could never do this.

3 – Objective Perspective: AI tools eliminate human biases, offering a more objective viewpoint capable of offering information from a wider variety of sources, helping a customer make more informed decisions with more balanced information.

Challenges and Opportunities

While AI holds remarkable promise, Dann acknowledged that challenges and areas for improvement exist. Specifically, in three key areas.

Firstly, Bibas recognised that AI excels in quantitative analysis but may struggle in situations requiring nuanced human judgment, especially during unprecedented events like the COVID-19 pandemic, as an example.

Secondly, the effectiveness of AI tools hinges on the quality of data. Ensuring accurate and unbiased data is crucial. Finally, AI tools offer important context on the markets to support retail investors in making their own, informed, financial decisions.

Bibas stressed the importance of achieving a balance between the opportunities and risks associated with AI in investment. He emphasised that AI tools should ultimately generate positive outcomes for customers, stating that, “AI tools are only as effective as the outcomes they generate.”

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In general, Bibas extolled a cause for optimism regarding the future of AI-assisted investment, asserting that it has the potential to empower retail investors with the knowledge needed to make more informed decisions. However, he highlighted the necessity for meticulous development and ethical considerations.

He concluded: “As we chart this new course in the world of investment, let’s remember that AI, when harnessed wisely, holds the key to a more accessible and informed financial future.”