5 reasons why WealthTech will continue to develop rapidly

The current model of the global economy functions in such a way that global capital is constantly growing. This is influenced by many factors, including globalization, technological progress, the development of financial markets, as well as population growth and increasing the level of people's income. Additionally, the policies of many Central banks also contribute to increasing the capital volumes - because when the economy slows down, they pump up the market with additional liquidity.

In this regard, more and more funds are given under the capital management. People who have earned enough money to invest, realize that it is better to preserve and multiply them with the help of professionals. According to the PwC forecast, the volume of global assets transferred under management will grow to $145.4 trillion until 2025.

With the development of Wealth Management, WealthTech also began to gain wider popularity. This is due, in particular, to the technological boom in the Fintech sector. The lockdown stimulated the active development of online payments due to the inability to pay with cash, because almost the whole world was isolated. Fintech products received an incredible impetus to development - investments poured into digital banking and various payment instruments.

WealthTech, which is a very prospective part of Fintech, also began to develop dynamically. More and more people want access to modern digital capital management solutions. In my opinion, the following trends will contribute to the further active development of WealthTech and the growth of investment attractiveness in this sector.

1.  Development of Artificial Intelligence

Advanced technologies have also reached the WealthTech sector. Innovations contribute to the emergence of interesting features that make the capital management service more perfect, customer-oriented and personalized. Particularly, a kind of revolution in the WealthTech sphere has been the introduction of AI-based Robo-advisors. Digital robots have automated processes of providing investment consultations, asset selection, portfolio management and balancing. And all this happens 24/7, because artificial intelligence does not need "work-life balance". Every second, the digital algorithm analyzes massive amounts of data on changes in financial markets, on the basis of which it forms highly relevant recommendations to customers and optimizes possible risks. Robo-advisors also prepare reports on portfolio performance, expenses and income. At the same time, they provide transparency of operations and are a reliable tool from a cybersecurity standpoint.

2. Personalization of WealthTech Solutions

Through innovation and Big Data analytics, capital management specialists have the opportunity to receive extensive data about their client - namely, his behavior, interests, needs, preferences. Based on this information, the investment company can develop individual solutions and proposals for different client groups and audiences, taking into account their unique features. The development of such personalized services not only improves  the client's user experience, but also significantly increases his loyalty to the company. For example, individual investment strategies are developed for clients, offering a personalized approach to solving specific tasks.

3. Democratization of WealthTech services

A characteristic trend of recent years is the desire for an increasingly broad audience to have access to modern digital capital management solutions. Not only Ultra High Net Worth  Individuals are interested in WealthTech services, but also clients from the High Net Worth Individuals and Affluent+ categories.

This is due to the overall development of the Wealth Management industry and the emergence of numerous convenient technological solutions, making the investment world more accessible to a broader audience. And since demand always generates supply, the way WealthTech products go beyond the audience of individuals listed in Forbes is evident.

4. Quality customer support

As the WealthTech market develops, competition on it is growing - more products are emerging,  between the players begins the battle for the client. As a result, the  companies that not only create the most functional service and make it the most convenient, but also organize a highly professional customer support service and provide customers with surprisingly high-quality service, will win.

Customer loyalty will be on the side of those companies that will offer a combination of personalized approach, usability, technological innovation, transparency, security and excellent customer support service.

5. The growth of Financial Culture

Now a certain Wealth Management culture has already formed in the world, when wealthy people increasingly trust their funds to professional management companies, Relationship- and Asset-managers. These experts possess modern capital management solutions and are ready to offer customers a lot of profitable offers for storing and multiplying funds.

Many clients are already actively using digital capital management platforms as Digital Family Office. Here in one place all financial information is concentrated and there are opportunities to manage funds (access to them, structuring, multiplication). A client on one platform can manage their finances from anywhere in the world, quickly receive responses to financial requests and have access to personalized solutions.