May 24
From Fintech to Wealthtech: Future of finances
Taking leaps and bounds is now everyone’s new goal, moving from fintech to Wealthtech brings a whole new light to finances but with a much higher level of technology, you may not be acquainted with these issues yet but you need to know them and understand the future of finances.
Fintech
The best way to understand the term Fintech is to understand the combination between finance and technology and how this last can be used to promote the growth and development in financial terms that the world needs, FinTech is currently an industry that offers financial services but uses technology so that finances more reliable and efficient.
FinTech companies offer various types of financial services and operate within varied markets. Some provide their services directly to users of the financial system and others design solutions for other companies.
WealthTech
WealthTechs are companies that are dedicated to finance but apply the use of innovative technologies, including artificial intelligence or Big Data, ensuring to make investment and wealth management services more efficient and more automated, seeking to transform the investment management business model.
Wealthtech is the combination of wealth, which means savings, investment or equity, and tech, which refers to Surge technology within the terms called X-Tech, which fuses a serie of companies, initiatives, and digital tools focused on investment and savings management.
Fintech o WealthTech
While fintech companies combine technology and finance to innovate in the way consumers use their money, becoming present in various sectors and industries such as retail banking and investment management, wealthtech companies offer digital solutions to modify the manner of managing and invest and for this, as mentioned above, they use modern technologies such as artificial intelligence and Big Data to offer wealth management methods different from those traditionally used.
Changes in finances
Personalization
The WealthTech have the possibility and the trends push them to provide personalized experiences, repetitive solutions are not sought, but solutions are appropriate to each case and for this, they use the data collected through the new technologies that are being implemented.
Enhanced user experience
For many, finance is not such a pleasant topic, which is why it aims to provide a unique experience, providing simple and easy operations is the best option, a good experience is not a plus but a priority, solutions arise every day where self-service becomes more pleasant for users and is what is sought within this world of WealthTech.
Cybersecurity
While wealth managers and advisors use digital channels on a broader scale and handle huge amounts of confidential and sensitive data from their clients. Cybercrimes emerge but in different ways, newer and exploiting newer technologies, which is why wealth managers invest more effort in complying with cybersecurity requirements and managing security risks.
Collaborations
Collaborations between technology and financial companies’ points to the need of making these collaborations develop in a coordinated manner, creating an ecosystem that manages to solve all the inconveniences that arise when managing wealth.
Future of Finances
The WealthTech known as the technological son of Fintech. They seek to create the best digital solutions for wealth management for all types of clients. It´s about a sector with infinite possibilities that brings with it innovation and technological development applied to traditional sectors, it is undoubtedly the future of finance thanks to adapted solutions, providing ease, sustainability and security.
Robo-advisors
Robo-advisors are born from WealthTech, which are responsible for creating viable investment options through machine learning algorithms, offering financial advice or online investment management with little or no human interaction, it is an automated service that helps determine which would be the ideal investments. Robo-advisors are able to generate revenue through lower spreads and higher transaction volumes.
Roboadvisors, mechanical wealth managers, offer personalized services to each client, and always act in the most optimal way based on algorithms that learn over time, among the most famous are Myinvestor, Indexa capital, finizens, inbestMe, amid others.
Micro-investments
WealthTechs also make use of micro-investments, these allow you to save, deposit and invest a much smaller amount of money than it has traditionally been. They offer a more interactive experience than Robo advisors since it allows processes to be automated but always taking into account the interests of the user.
Digital brokers
Digital brokers make stock market data and opportunities accessible to people. They are online platforms and software tools that allow access to information and investment in the stock market.
