How WealthTech Platforms are Creating New Opportunities for Financial Freelancers and Entrepreneurs

Where are the opportunities concentrated? They exist where there is great potential for growth and societal value. When developing a product, it's essential to answer two questions: what pain does my product alleviate, and how many people experience this pain?

When discussing the value of modern FinTech and WealthTech products, the conversation often focuses on addressing consumer pain points. For instance, in previous articles, I've written about the pain faced by the middle class, which struggles with limited access to wealth management services and associated financial solutions that are usually available only to those with assets exceeding $30 million. A tech product that alleviates this pain can indirectly address a higher-order problem: reducing financial inequality worldwide.

Meanwhile, beyond the end consumer, there is another extensive yet not immediately obvious target audience whose pain WealthTech platforms can alleviate. This group includes freelancers in the financial sector and independent entrepreneurs who could significantly expand their opportunities and horizons by joining these platforms.

The comprehensive digitalisation of a wide range of financial services, bundled into a few applications, inevitably involves integrating financial advisors, asset managers, lifestyle consultants, tax and legal advisors, and more. These professionals may work for major banks or well-known financial companies, or they may be freelancers. The latter, in particular, inspire me, as this route offers a solution to yet another global issue: fostering entrepreneurship.

According to a World Bank report, 90% of businesses worldwide are small and medium-sized enterprises (SMEs), accounting for about 50% of global employment. The global freelance market is valued at $1.5 trillion, with financial freelancing alone estimated to represent at least 12% of that market.

Globally, there are approximately 223,000 certified financial planners (CFPs), and in the United States alone, there are around 612,000 independent financial representatives, regulated at the highest level by the Financial Industry Regulatory Authority (FINRA).

The financial industry is evolving, and these changes are driven not only by new technologies and the demands of modern clients but also by the desire among financial professionals to have greater freedom in their work and to explore entrepreneurial potential. Many already work both online and offline, splitting their time between home and office, and some have become freelancers. This entrepreneurial and freelance culture is flourishing.

People with experience in large corporations, or even those without, often want to work independently from big firms, earning fair compensation for their services rather than bonuses that can be slashed due to the company's overall performance. This explains why many professionals are leaving major banks: even if their department is successful, they might not receive bonuses if other divisions or the entire organisation underperforms.

Many experienced asset managers and analysts, with 10 to 20 years in the field, are leaving to start their own ventures. They develop independent investment strategies and launch hedge funds.

What challenges do these professionals face in succeeding on their own? What is their pain? They lack a client base and new leads. Large corporations provide branding, strong marketing, and legal protection, which is crucial for working in the retail market, where legal issues can be costly. Financial professionals are hesitant to operate independently due to these risks.

What could address these challenges? By joining a WealthTech platform, advisors and consultants gain access to digital tools essential for today's world, but which are often unaffordable for many independent professionals. Freelancers often lack the financial resources to integrate AI into their workflow, develop software, set up lead generation, and build a personal brand.

This creates a significant gap between medium and large firms. SMEs in the investment, financial, or consulting sectors lag behind big businesses, which have the brand recognition and resources for development and innovation. The platform in question could offer independent consulting entrepreneurs a strong brand, access to analytics, cutting-edge technology, and new leads. They would work independently but under the platform’s umbrella, receiving fair compensation and a share of the profits.

Technological innovations, particularly with AI integration, play a crucial role in many processes today, and finance is no exception. According to McKinsey, companies that leverage AI can increase productivity by 20-30%. This is further supported by the stock performance of S&P 500 companies this year. Firms leading in innovation (the so-called “Magnificent 7”), according to Factset, showed an average year-on-year increase in corporate earnings of 18.1%, compared to just 0.1% for the other 493 companies in the index.

By 2027, the AI market in the financial sector could reach $26.67 billion, highlighting enormous potential. AI indeed plays a pivotal role in wealth management, automating up to 80% of basic tasks, which boosts efficiency and service speed.

AI-related developments are currently the most expensive part of any project, a reality we are experiencing firsthand as we develop our WealthTech product. However, this investment is essential for future success, given current trends.

Opportunities arise where technology addresses society's major challenges. WealthTech has the potential to bridge the gap in access to financial services for the middle class and empower independent consultants to grow their businesses. The platform transforms costly wealth management services into accessible solutions while providing freelancers with the tools and leads they need. This creates a mutually beneficial ecosystem where financial freedom and technological progress drive each other forward.