What is WealthTech-as-a-Service?

Wealth Management is a catch-all term for an investment advisory service that traditionally caters to accredited investors and the more affluent. Wealth managers offer a set of comprehensive services, including retirement planning, legal and estate planning, accounting and tax services, etc., with the sole purpose of growing, preserving and protecting clients’ wealth.

As technology has improved, and demand has risen for lower-cost, digital-first investing platforms and services, wealth managers have started to shift client interactions to digital platforms, and fintechs have emerged, seeking to improve access to these services. 

As the industry adapts to major changes posed by regulatory and compliance requirements, shifting customer expectations, and rising competition, these financial services players have turned to invest in technology to scale new capabilities faster.
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WealthTech as a Service

‍WealthTech, as the name suggests, is a new field within the fintech industry that is disrupting the personal wealth management sector with digital-first products and platforms, and services offering an alternative to traditional wealth management firms by utilising automation, technology, and more efficient investment and wealth management services. 

Next-generation wealth and investing apps have transformed access to services across the globe, increasing participation, lowering costs, and empowering users to invest for themselves with just a click of the button.

In July 2021, App Radar, a marketing company for app stores, reported that around 6.4 million people in the UK, almost 12% of the adult population, use at least one investment app to manage their savings, nearly double the number from March 2020. While new speculative asset classes, such as cryptocurrencies and NFTs, are booming. 

Meanwhile, the top 10 investment apps gained an estimated 1.6 million users on the Google Play Store over that same period. UK-based money management app Plum was one of the biggest winners, App Radar found, with over 380k new users, an 80% increase.

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With the increasing investments in cybersecurity and human-centered design, the need for building a superior digital user experience is becoming critical.

The pandemic has dramatically contributed to the global adoption of digital platforms, leading to the rising popularity of WealthTech. Powered by exciting technologies such as machine learning, artificial intelligence and big data, WealthTech is here for the long haul.

Stay tuned for our next piece on the Trends in the WealthTech ecosystem!