Technology plays a very important role nowadays in everyday life and wealth management is no exception. A long time ago the wealth management services were only accessible for people with significant wealth and because of the barriers and the really high costs the access was limited, thus not everybody had access to them. But thanks to FinTech wealth management an innovative solution has been created and if you have any amount of wealth you can still manage it with wealth management technology platforms. If you are interested in how to manage your financial assets keep on reading to understand all the essential aspects about wealth management with online platforms. 

What Is FinTech Wealth Management?

FinTech is the abbreviation for financial technology and FinTech wealth management is about its integration into the traditional sector of wealth management. The purpose of this integration is to enhance the strategies and the services offered by wealth managers through effective and innovative technological solutions. 

KFintech also mentions ‘Fintech has transformed many sectors within the financial industry and wealth management in recent years. Fintech is rapidly influencing people to manage their private wealth. And not only this it also guides them to invest and grow their assets. The incorporation of technology in wealth management has provided various benefits such as increasing efficiency, flexibility, personalization, and security.’

Therefore, if you want to manage your assets and liabilities but also to plan your financial future based on your goal, then the ideal solution is to go for a wealth management technology that can help you through a portfolio management software, robo advisors and digital communication channels.  

Understanding the Wealth Management Better

Wealth management are basically the personalized services offered for clients with a significant amount of money or wealth in general and they include active portfolio management, retirement planning, consultancy about investments and tax planning. The main goal of these services is to keep the wealth safe in the long run and to maximize the capital. In the old days these services were offered by traditional banks and financial consultants who worked with every client individually. 

But these days are over and now technology is all over the place, improving these services as well. The financial technology included digital platforms such as robo-advisors. 

Process.st mentions about robo-advisors that they are ‘Automated platforms that provide financial planning services with little to no human supervision. These platforms use algorithms and AI to create and manage client portfolios based on their risk tolerance, financial goals, and investment timelines.’  

The Benefits of Using a Wealth Management Technology Platform 

The first advantage was also mentioned before and it is about the services expansion for a bigger audience because the traditional wealth management was available only for the people who had significant wealth. Therefore, with the involvement of a technology platform for wealth management the field became more accessible. 

The benefit that interests many people who want to go for a digital wealth management solution is the cost savings. The majority of solutions in FinTech wealth management are automated covering a lot of operations, thus it automatically cuts down the number of people needed as advisors. And also, the use of mobile delivery models reduces distribution costs. All of this makes wealth management way more affordable and efficient. 

The automated part also comes with fast replies to the market changes and is able to continuously keep up with it and to adjust every financial strategy in a way that it can still be relevant and as efficient as possible. In addition, the personalization of the strategies is also improved because the technology is able to adapt the financial strategies on every client’s preferences and needs because it uses certain algorithms that analyze the financial profile. 

Transparency is also an advantage when talking about wealth management through a technology platform because the users/the clients have a clear vision on the costs and the performance of their investments, thus the ‘hidden risks’ are avoided. 

The security was also improved because different authentication methods were found such as MF authorization (Multi-Factor authorization) or end-to-end encryption but the cyber security was well-established overall. All of this made FinTech way safer for financial frauds and data. 

The Impact of Digital Wealth Management on Young Generations 

Statistically, Gen Z has passed the millennials officially because Gen Z at the moment makes up around 26% of the population while the millennials are a little bit less than 23% of the population. But these two generations have in common the fact that they have been born into a non-stop growing technology. They are familiar with everything that involves Artificial Intelligence which makes them trust it for critical financial advice. And on the other hand, there are the older generations who do not put their trust in digital tools so easily, but can learn how they work and also be attracted to a wealth management technology platform. 

So, if you want to attract almost 50% (Gen Z + Millennials) of the world's population as investors to a wealth management technology platform you have to use FinTech strategies to offer them smoother experiences and a hassle-free investment platform. If you can impress them, maybe they will convince their parents or even grandparents as well to invest in your platform. 

Conclusion

In conclusion, FinTech wealth management becomes more popular everyday because of its effectiveness and its many benefits such as transparency for the client, personalized strategies, the use of AI and so on. The technology helped wealth management evolve and improve bringing new innovations through FinTech platforms. Traditional wealth management was only the start for something that today can open doors to a brighter future. Emerging technologies such as block chain will continue to influence this industry, providing quick responses to the financial market changes and improving security. Financial technology not only changes the way wealth is managed, but can also create a lot of new opportunities for a wider range of possible investors.