WealthTech is changing the future of money and asset management. Just as fintech combines finance and technology to change the way we interact with money, this growing segment merges wealth and technology to provide digital solutions that enhance wealth management and investing.
The bottom line is - the wealth management industry is on the cusp of a transformation thanks to accessibility, technology, and a newfound customer-centric attitude. From InsurTech to RegTech and more, WealthTech is an expansive sector within the Fintech industry that shows no signs of slowing down.
As more and more consumers digitize their finances and gain access to expert tools and support, it’s crucial for businesses to keep up with the times. Here are four critical trends fueling WealthTech's growth.
4 CRITICAL WEALTHTECH TRENDS YOU NEED TO BE AWARE OF
1. Lower Barrier-to-Entry THAN EVER
So much has changed within the wealth management space over the past ten years. One of the most noticeable changes is that customers no longer have to be super wealthy or in a hedge fund to invest their money. The barriers to entering the wealth management space have lowered significantly to welcome new faces across all backgrounds and knowledge levels.
Today’s wealth management companies are not only targeting investors that are digitally savvy but also allowing for those who need more guidance to participate in their digital offerings. Take the real estate industry, for example… Regardless of a person’s WealthTech knowledge, investors from all backgrounds can now invest in real estate and join a pool of 500+ people online who are also investing and still make money.
2. ENHANCED TECH USABILITY
A major strategy for today’s Fintech companies is digitizing their WealthTech products. The typical WealthTech technology interface is becoming easier to use with more interactive UI and UX capabilities, contributing to a seamless experience for the end-user. Today, investors are moving toward platforms with advanced interfaces where they can make investments with the click of a button.
Another trend enhancing tech usability is the proliferation of Robo-advisors. These automated, algo-based systems provide wealth and asset management advice to investors who need additional support, guidance, or expert knowledge. Rather than threatening traditional advisor models, Robo-advisors are changing the game and becoming increasingly more popular than working with a live advisor.
And finally, big data and advanced analytics are supplying ways to engage with new clients, manage client relationships, and manage risks for companies. Collecting and manipulating all of this data leads to top-notch offerings that allow companies to better compete in the WealthTech market.
3. ATTRACTING A YOUNGER DEMOGRAPHIC
Today’s companies are also refocusing their strategies to attract a younger and younger demographic. By offering more SME support and creating a seamless user experience, companies are attracting millennials and Gen-Z consumers to their products and building a new customer profile altogether.
What all of this boils down to is a more diverse consumer base. The most important thing any wealth or asset management company needs to consider is continuing to welcome investors across demographics. While attracting younger customers is a new focus for many, it’s still crucial to support and attract a more mature audience and offer both tech-based and knowledge-based help where users need it.
3. ENHANCED NAVIGATION
Clear navigation that is optimized for a better app experience allows users to realize the value of the Fintech app or website. It will also ensure that client loyalty and usage will continue to grow as the product is enhanced and features are added.
Your team of Front-end Developers needs to be savvy when optimizing your product’s navigation. On top of maintaining performance and responsiveness, they need to work closely with the UX team to map out intuitive navigation so that users can achieve their end goal in the most optimized and efficient manner. The last thing you want is for users to get sucked into an endless loop to find the answer they need. Luckily, the best Front-end Developers sleep, eat, and breathe to create an intuitive product that keeps users coming back for more!
4. OLD-SCHOOL COMPANIES ARE MODERNIZING
And finally, many old-school companies are struggling to adopt modern WealthTech technologies. Legacy companies are moving away from traditional models, methodologies, and offerings to support the increasing demand for digital offerings. However, uprooting outdated tools and processes could be difficult without a solid modernization strategy.
If this sounds like your company, the best way to scale your team, update your processes, and stay in the loop is to hire world-class Fintech talent. The right SMEs keep their finger on the pulse regarding WealthTech trends and can steer you in the right direction to build a seamless, modern product.
FUTURE OUTLOOKS FOR WEALTHTECH HIRING
WealthTech's growth is undeniable and shows no signs of slowing down. The number of companies and Fintech players entering WealthTech are rising and becoming part of the larger landscape. Companies such as Galileo, Pleo, Amazon Pay, and FreshBooks are paving the way for the future of WealthTech by taking these trends by the reins.
There are countless benefits of building an expert WealthTech team to propel your company in today’s market. Staying on top of the trends is the first step in understanding which resources you might need to gain a competitive advantage and build an excellent product for your consumers.