6 Uses of Fintech in Wealth Management That You Need to Know

Fintech, or financial technology, drives fast change in the wealth management industry. Financial services are being delivered in a way that is more personalized, effective, and easily accessible, thanks to FinTech. Knowing how fintech affects wealth management is important whether you’re a financial advisor, investor, or someone looking to manage your money better.

This post covers six significant FinTech wealth management applications revolutionizing the industry. These advancements, from real-time financial information to automated portfolio management, revolutionize how we manage and approach investing. This post covers how fintech improves wealth management’s efficiency and intelligence.

What is Fintech Wealth Management?

By utilizing technology, wealth tech revolutionizes asset and money management. It uses technological innovations such as blockchain, artificial intelligence, and machine learning to improve investing and personal finance. WealthTech developers provide financial planning software that automates tedious asset management processes and generates individualized financial recommendations using artificial intelligence (AI).

FinTech wealth management is transforming the financial sector by integrating advanced technologies to enhance traditional financial services. Innovative technologies such as AI and machine learning are crucial in transforming financial management by enabling informed financial decisions and personalized services.

As a result, wealth managers need more work to do, which allows them to focus on high-value services. Wealth management solutions offer clients superior investment, budgeting, and wealth planning advice.

FinTech wealth management solutions involve wealth optimization and risk mitigation by studying financial data. Additionally, they simplify the process for clients to monitor investments, manage budgets, and obtain performance notifications. WealthTech improves asset and money management regarding accessibility, effectiveness, and personalization by utilizing data-driven techniques and intelligent automation.

Using this technology improves client results and services as well as management. Wealth tech represents an exciting trend towards more approachable, efficient software development for wealth management.

5 Essential Elements of the Fintech Platform for Wealth Management

1. Resources for Product Education and Training

All the training resources you’ll need to advance your knowledge of structured investments, fixed-indexed annuities, and everything in between are available in the Education area.

You can share FINRA-reviewed films with your clients and much more from the extensive resource library.

2. Budgeting

You may find various planning tools in the Financial Planning section that will transform how you approach and manage your clients’ portfolios. Comparing this assortment of tools and connectors to other platforms, they are distinct.

Reframe your capacity to determine the optimal financial profile for every customer by utilizing sophisticated fintech tools integrations, such as a novel approach to visualizing and multi-dimensionally exploring asset allocations and risk-managed solutions.

3. Sturdy Product Marketplaces

Profound analysis and real-time data are used in the annuity and structured product marketplaces to provide unparalleled product insights. You can create the ideal strategy allocation for customers with the help of an easy-to-use feature that incorporates personalized investment strategies. You can also use the Income Calculator to confirm the precise aspects of your product required to meet your clients’ income requirements.

The extensive marketplaces and Income Calculator are just the beginning of the offerings. One of the newest features in the portal that makes it simple to locate the best products for your clients is a product-finding tool.

It functions by having you respond to brief questions that make it easier to sort through possibilities until you locate the perfect selection of goods. Additionally, you can see how many products meet the provided criteria.

4. Better E-Application

Reduce unnecessary paper expenses and improve workflow with the E-Application Enhanced tool. With this user-friendly, completely embedded solution, you may efficiently execute the most appropriate items for each client.

You may confidently submit business knowing that your applications are up to date because they come with built-in product training checks and the option to pre-fill essential application components.

5. Tracking of Lifecycle and Business

Organize your business book in one location. You may view surrender values, account values, and more with the Lifecycle functionality. You can use a helpful feature that determines the best plan allocations for your clients annually if you can access accurate renewal rates straight from the carriers.

6 Applications of Fintech in Asset Management for Today's Advisors

The following are some ways that fintech can be used in wealth management:

• Improve Data Analysis 

Your clients provide a great deal of information, which is required by know-your-client (KYC) regulations when they create an account with a bank or your business because banking and investing are highly regulated industries.

Fintech wealth management systems can process this and quickly discover investment trends, consumer behavior, and credit health by using machine learning and artificial intelligence (AI). Fintech plays a significant part in cutting overhead expenses in this way.

In this manner, you may provide yourself with a competitive edge and an unparalleled personalized experience for your clients.

• Lowers Wealth Management Overhead 

When handling accounts the traditional way, a financial advisor has to take one of two actions: personally call every customer to update them on their finances or take phone calls from clients who come into their offices asking for updates.

Alternatively, they have an entire staff that helps them with investment management, client data organization, guidance, and regular updates. By using wealth management fintech technology, you may prevent your clients from squandering time and money on overhead by having them monitor their dashboards on the app or website and notify you of any problems.

You can also automate trading and advisory services for your clients, eliminating the need for you to function as an intermediary in their financial transactions. This way, you can reduce the number of employees on your team or give them more critical tasks to draw in more business.

Fintech tools allow you to automate time-consuming, repetitive processes, allowing more time for in-depth, one-on-one client engagement.

• Enhance Client Convenience through Wealth Management 

Studies show that lengthy onboarding processes at banks and financial firms result in about 24% of potential clients abandoning their applications.

Likewise, 32% of customers won’t even start an application if they have to come into your office to show identification.

You must employ wealth management fintech to enhance your services and create wealth to see higher client acquisition and retention rates in 2022 and beyond, hands-on management for your customers. 

• Reduced Time and Cost of Client Acquisition

The primary reason why certain wealth management firms are unable to reach their full potential is often due to exorbitant fees associated with acquiring new clients. Financial institutions must continue to prioritize keeping a solid client acquisition strategy if they want to prosper in the fintech sector.

Fintech wealth management is excellent for facilitating a quick and easy onboarding process, which is one approach to reduce that. It improves the customer experience and reduces the hours required for each client intake, lowering expenses overall.

To avoid requesting KYC information more than once, you might utilize programs to digitize and preserve it.

Similarly, you can speed up the process using fintech software instead of having clients sign twenty or more documents and waiting three to five business days for your wealth management agency to set up their account.

• Growing Your Fintech Wealth Management Business

By utilizing wealth management fintech technologies, you can reach a previously inaccessible clientele due to distance, language barriers, work overload, or a lack of efficient resources like client management and communication channels.

By using fintech technologies, like robo advisers, to automate your work, you create opportunities for new clients.

Thus, Fintech allows you to expand your customers by providing additional services. 

Similarly, Fintech gives people who previously had no access to wealth management, many of them from lower socioeconomic backgrounds, a chance to experience it.

Rich people have traditionally been unable to afford good asset management services. This is a result of the comparatively sizeable necessary investment and servicing costs.  

Conversely, Fintech might allow you to charge less for inexpensive services like micro-investment services.  

• Bring in Young Investors with Digital Wealth Management

The population comprises roughly 26% of Gen Z and 23% of millennials.    These generations grew up or were born into a world where same-day deliveries and digital technologies were commonplace. 

Compared to prior generations, they have greater familiarity with and trust in automated AI-backed software that provides consumers with individualized recommendations for crucial financial advice.

Therefore, you need to employ wealth management fintech to provide hassle-free investing platforms and more seamless overall experiences to draw these modern investors to your wealth management platform.

Fintech's Role in Wealth Management Going Forward

Fintech’s prospects for the wealth management industry are bright since ongoing developments are anticipated to transform the sector entirely. Blockchain, big data analytics, and artificial intelligence are emerging technologies that will spur innovation by introducing fresh approaches and enhancing current ones. For example, big data analytics can offer deeper insights into market patterns, customer behavior, and financial assets, while blockchain technology can improve transaction security and transparency.

Furthermore, it’s going to become more popular to incorporate environmental, social, and governance (ESG) considerations into fintech solutions. Fintech can be very important in delivering the data and tools that investors need to support their increasingly ethical and

Conclusion

WealthTech is rapidly altering wealth management in the FinTech industry by utilizing digital technology, artificial intelligence, and data analytics to deliver efficiency and development prospects. As the sector grows, choosing the right technological partner becomes crucial. Hire Highen Fintech’’s committed developers. We possess robust FinTech expertise in AI, compliance, and related fields. Highen Fintech offers a comprehensive investment advisory service to enhance, protect, and preserve wealth.

Using its extensive expertise and in-depth understanding, Get In Touch with Highen Fintech, a leading AI-based FinTech software development company, will help you create a robust and lucrative WealthTech application. Highen Fintech’s wealth management services integrate technology and personalized experiences to meet your financial needs. To design a tailored WealthTech solution that satisfies your needs, please contact our team of experts.