Future Of Wealth Tech; Everything You Need To Know in 2024

Are you curious about how technology is revolutionizing the operations of wealth management? Are you searching for the benefits of wealth tech?  Are you curious about how wealth tech is helpful for financial advisors to provide personalized services to their clients?

If you want to know, what is wealthtech and other information related to it, you have reached at right place.

Technology is advancing in almost all sectors and at the same time it is also changing the operations of wealth management, advisors, and clients. One of the very obvious advancements in this domain is usually a wealthtech and it is rapidly growing momentum. According to reports! Wealthtech experienced a remarkable compounded annual growth of about 25.23% until 2028. With such amazing growth on the horizon, it is very important to understand what wealth means and what it offers to wealth tech management as well as their clients. You are here to learn all about wealth tech, don’t worry we are here to help you.

In this article, we will explore an introduction to wealth tech just to clarify what wealth tech is. We will also explore the benefits of Wealthtech to its management and its clients. We will provide you with some services and solutions of wealth tech. You will learn here, how it helps financial advisors to provide personalized services or solutions to their clients. We can say that, you will find all the information related to WealthTech here. So don’t go without reading all the topics we are going to cover in this article.

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What Is WealthTech?

WealthTech is usually the branch of FinTech that utilizes wealth management and technology to offer many innovative as well as accessible solutions to investors. It helps them to revolutionize the management of funds and assets actively. It is incorporated into cutting-edge technologies such as artificial intelligence, machine learning, and blockchain to enhance personal finance decisions and investments. FinTech developers usually leverage these technologies to create applications that automate wealth management and provide AI-driven financial advice and solutions.

These solutions then reduce the manual effort required by the wealth managers and allow them to prioritize delivering valuable services. Users are allowed to get benefits from the tools that enable them to make informed decisions on investing, budgeting as well and wealth management. It also analyzes the financial performance and optimizes the wealth by reducing the risks, tracking the budgets, and monitoring the investments.

Services And Solutions Provided By WealthTech:

You have learned what WealthTech is, now it’s time to learn the services and solutions that are provided by WealthTech. WealthTech is under the FinTech but it is an umbrella term that covers a wide range of technologies, their main focus is on wealth management.

1. Robo-Advisors:

It is one of the most popular forms of WealthTech and it offers financial advice or investment management online with little or no human interaction. This automated service makes use of machine learning algorithms to determine the ideal investment portfolios for the customers based on risk preferences. Robo Advisors can generate more revenue through the use of lower margins as well as a higher volume of transactions. Robo-retirement is another version of Robo advisors that are also popular in the sector. Companies in this category specialize in the management of retirement savings of consumers.

2. Micro-Investing:

Micro—investing allows its users with an opportunity to save, deposit, and invest a smaller amount of money. It is possible to automate the process and authorize the platform to manage the portfolio based on your personal preferences. You are also allowed to choose your own ETT and stocks. After this option, Micro-investing provides a more attractive experience than using a Robo-advisor.

3. Digital Brokers:

Digital brokers are online platforms the software tools that allow access to the stock market’s information and investment. Brokers will normally charge a high flat fee per trade that’s why investing has traditionally been accessible to only those who can invest large amounts. In this category, social trading is very popular for the less-experienced market. Through this feature, users can shadow or copy the trade automatically which most of the experienced traders do.

4. Investment Tools and Portfolio Management:

Investment tools and Portfolio management are usually the B2B segment of the WealthTech. The most typical aspects of these investment tools include comparison tools, research analyses as well as and access to a network of advice. Portfolio management solutions are helpful to financial institutions with asset class analyses and with the help of organizations and automation in this way, they also increase the efficiency of most of the tasks.

5. Financial Services Software:

Financial services software is usually comprised of companies that provide specialized software just to support the adoption of digital wealth management and investing strategies. Companies like Paid Technologies are included in this category, it acts as a software intermediary that securely connects financial application users along with their personal bank accounts.

Benefits Offered By WealthTech:

While searching what is WealthTech, you will also think about what benefits WealthTech provides. So here we are going to discuss some of the benefits it provides generally and to wealth management professionals and their clients;

1. Customized Investment Portfolios:

WealthTech provides many benefits to management professionals and their clients, one of the key benefits it provides is customized investment portfolios. It provides them a customized investment portfolio and then it becomes easy to meet the needs and preferences of clients.

2. Fewer Human Errors:

WealthTech reduces human errors in the management of portfolios and makes investment decisions. It uses automation of processes and advanced technologies to reduce human errors.

3. Programmed Portfolio Management:

WealthTech provides computerized Management of portfolios and tasks related to them such as rebalancing as well as tax optimization. It then ensures that your Portfolio will remain associated with clients’ objectives.

4. Minimal Workload:

WealthTech helps to reduce the manual workload and makes it very for wealth management professionals to focus on other tasks. WealthTech uses automation and streamlined processes to reduce the load of work.

5. Stay Connected with your Clients:

WealthTech tools provide real-time communication and make it easy for managers to address the queries of clients to provide them with regular updates.

6. Business Scalability:

WealthTech facilitates business scalability and mobile expansion which enhance the reach as well as the potential growth of wealth management professionals.

7. Cost and Time Effective:

WealthTech is providing many benefits to wealthtech professionals and at the same time, it proves to be cost-effective if we compare it to traditional services.

WealthTech is also considered time efficient as automates the processes. It then frees up the time for the managers. In this way, managers can easily focus on strategic decision-making.

How Wealthtech Help Financial Advisors Provide Their Clients With Personalized Services?

After knowing the basics about Wealthtech you want to know its advantages to financial advisors, we are here to guide you, on how.

Here we will explore some of the key Ways in which it helps Financial Advisors!

1. Better Data Analysis:

WealthTech helps clients in such a way that it allows their financial advisors to go deep into their profiles or portfolios. Then advisors provide them with financial pieces of advice and recommendations.

2. Modified Investment Strategies:

WealthTech is helpful to financial advisors as it provides them with automated portfolio optimization and risk assessment.

3. Simplified Communication:

WealthTech provides real-time interaction as well as personalized engagement. It is due to secure messaging, video conferencing, and document sharing as it strengthens the advisor-client relationship.

4. Finance Planning and Goal Tracking:

WealthTech provides its users with many financial planning tools to track the progress of the financial goals of clients. It also allows an adjustment to these strategies. It then ensures the ongoing monitoring and addressing of the objectives.

5. Compliance and Security:

WealthTech platforms also incorporate automated compliance checks, monitoring of transactions, and secure storage of client information. It then leads to data security along with regulatory compliance.

Wealthtech Companies Distributing Traditional Wealth Management Models:

Here we are introducing you to five WealthTech Companies that provide user-friendly solutions to investors. Here they are;

1. WealthFront:

WealthFront Employs Algorithms as a Robo-Advisor just to create and manage personalized investment portfolios. WealthFront is the platform where you can grow your money. This platform is for you, if you are saving your money, investing it, or just want to make the most of it, as it is a brilliant way to build your wealth.

2. RobinHood:

Robinhood is a commission-free investing strategy and provides tools to help shape your financial structure. It is the safe stock broker that is usually regulated by the Securities and Exchange Commission. It follows the same regulatory requirements as other popular brokers. Here you can buy and sell stocks, ETFs, and other cryptocurrencies without any fees. It provides a high level of security to users.

3. Personal Capital:

Personal capital provides tools that are very effective and want people to empower. It is one of the world’s largest retirement planning companies. All of your dashboards (Award-winning) and features will remain free. So if you are an advisory client, you don’t have to pay any fee. It provides you with a Premier IRA, Brokerage IRA, and investment account. It is usually considered a safe and secure platform so you should trust it without having any doubts.

4. Betterment:

Betterment is considered the best way to save and invest your money. It is built to help you to achieve your goals with your money. Make investments with an automated, and expert-built portfolio. It is safe as it provides many security features like two-factor authentication, encryption as well as biometric authentication.

5. Stash:

Stash offers access to the banking account with no overdraft fees or minimum balance through Stride Bank. It allows you to save automatically using roundups and auto-invest. It allows you to set your goals by separating your cash into spaces for specific purposes. It is considered a safe platform to invest your money or to save it, do what you want to do with your money.

Future Prospects Of WealthTech:

WealthTech is considered an emerging technology and has emerged into the financial sector. We believe that there will be many new advancements to come in the future. We can say that! WealthTech may replace financial advisors in the future. WealthTech helps to win insights into the client’s needs and behaviors which allows for improved services as well as security. So the companies who prioritize data entry needs can get benefits from WealthTech. As technology is advancing day by day we can say that WealthTech will provide more benefits and services in the future.

The Bottom Line:

WealthTech is considered a digital solution that is designed to facilitate the processes of wealth management. Along with digital payments, regulatory technology, and insurance technology, wealth tech is also one of the FinTech industries. WealthTech has made investing and saving more accessible by using technology just to deliver most of the cost-effective products for advisors and consumers. So we can say that wealthtech has proven very beneficial for financial industries in many ways.

This article is the ultimate guide for you as you are here to learn about WealthTech. We have provided you with the benefits of WealthTech overall as well as the advantages it provides to financial advisors. You will also get to know about companies that are providing WealthTech benefits. So we are hopeful that, all your queries related to WealthTech have been cleared. Do let us know in the comments your feedback about this guide.


1. How AI is used in Wealth Management?

AI Used in wealth management means using machine learning and advanced statistical models just to process large amounts of customers and market data. It is to increase the prediction accuracy, generate more leads, and automate back-office tasks.

2. What is the difference Between WealthTech and FinTech?

There is a difference between FinTech and WealthTech. FinTech focuses on several financial services, and WealthTech works only on wealth management and investment services. Otherwise, WealthTech lies under the umbrella term FinTech.

FinTech provides more benefits as compared to WealthTech as it covers many financial services such as payments, loans, and compliance.

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