The rise of digital tech was already a game-changer for all industries. Then in 2020, the Covid-19 pandemic further accelerated the digital transformation of many enterprises, with digitalization and technology combining to transform their processes.
Most modern businesses have now digitized a majority of their operations, and for fairly obvious reasons — to increase operational efficiency, attract new consumers, and improve the customer experience. While many had realized the importance of digital transformation earlier on, most companies were approaching it in a fairly slow and steady way. However, the pandemic had other plans, and in a matter of only a few weeks, several organizations around the world made the switch to digital.
This shift could be seen in the investment management sector too. From venture capitalist firms to equity firms and private investment clubs, the pandemic helped organizations realize that having a digital ecosystem and structured online communication is something the investment world direly needed.
In today’s post-pandemic era, digital communication has undoubtedly become an essential element for organizations. While there is an overwhelming amount of communication platforms, there is a lack of an efficient platform that consolidates and organizes investments communication, especially for investment clubs.
What are investment clubs?
An investment club is typically nothing more than a group usually consisting of individuals who are friends, coworkers, family members, and so on. These individuals pool their funds and meet on a regular basis (typically monthly) to invest in a combined portfolio.
You could say that investment clubs are, in fact, the unsung heroes of the investment world. With an investment club, one can build a considerable portfolio over time by investing little amounts on a regular basis rather than making a large one-time commitment. They also have a number of other advantages.
- Investment clubs bring together a diverse collection of people, each with their own unique ideas, experience, and investment knowledge that you might not have had access to otherwise.
- Investment clubs are an appropriate means for new investors to learn more about investing without having to risk a substantial amount of money.
- But, more importantly, in addition to the monetary rewards they provide, these clubs offer a wonderful opportunity to network with individuals who share similar interests.
However, due to mistrust and inability to track their investments, failure to engage members for investment decisions, and other factors, a number of investment clubs are falling today. Although investment clubs provide an attractive environment for scholarly observation in which financial decision-making processes are made transparent, their potential may be hampered by a lack of proper communication.
And by deploying blockchain technology across the industry, this problem might be effectively handled. In today’s digital age, organizations must concentrate on building an effective communication network to survive, and blockchain technology can potentially change how businesses operate.
The Blockchain Play
For those unfamiliar with blockchain, it is a way of storing data that makes it difficult or impossible to alter, hack, or deceive the system. A blockchain is essentially a type of digital ledger that records transactions in “blocks” that are “chained” together. As a result, it allows for the traceability of records.
Blockchain technology is famous for being the underlying technology of cryptocurrencies and validating the transfer and receipt of digital assets. However, blockchain goes beyond the scope of cryptocurrencies to enable benefits like traceable open-source storage, decentralization, security, and immutability. As a result, organizations are increasingly using blockchain technology to transact and communicate in a seamless fashion.
One of the most essential aspects of blockchain technology is that it has generated a distinct level of trust among network participants, ensuring that all transactions are safe and secure. Thanks to blockchain’s transparency, everyone on the network can monitor transactions in real-time. This significantly increases accountability and trust among business partners.
Benefits of blockchain adoption for investment clubs
The transparency provided by blockchain could have a significant impact on investment club networking. People in an investment club typically network and introduce each other. And they’ll certainly want to claim credit for such introductions. These digital introductions might be recorded on the blockchain, which allows for permanent data storage. As a result, everybody can see and verify who introduced who to whom at any moment. By permanently recording such referrals and relationships, people can take credit for these introductions and collect a commission.
Furthermore, these investment clubs will frequently deal with multimillion-dollar transactions and deals and blockchain may be employed to accurately track and record such transactions.
Certainly, in this way, the adoption of digital and blockchain technology allows people to trace transactions and therefore get credit for introductions and deals they close within the system, thereby helping members build capital and credibility.
GoldFingr: Revolutionizing the way investment clubs work
GoldFingr, is the first-of-its-kind mastermind network, composed of Elite Investors, Innovators, and Worldwide Influencers. Combined with their latest tech platform called Goldfone, the all-in-one platform for connecting, investing, and fundraising they are set to bridge capital to projects looking to make a positive impact in the world. The Goldfone platform includes some of the best thinking minds of our time, from billionaires to presidential candidates, dignitaries, diplomats, entrepreneurs, and world leaders and the platform’s influential global network innovates, incubates, accelerates, and funds top projects from around the world.