What Is Wealthtech: Robo-Advice, Kyc Onboarding, and Much More

Adopting a digitized operating model is vital for wealth managers to serve modern customers with their tech-based needs; thus, bringing wealthtech to life. Yet, not this fact alone vouches for the importance of the introduction of digitization into wealth management.

According to Fortune Business Insights, the global wealth management market is expected to reach $6.29 billion by 2029, compared to its current value of $2.64 billion.

Besides, Research and Markets indicate that the global wealthtech development market will reach $137 million by 2028; a significant increase from its $54.62 million. In a nutshell, all the aspects of enterprise software development will be further implemented into wealth management.

What Is Wealthtech?

Wealthtech is part of a FinTech technology focusing on wealth management. The solution works for aspects like regulatory tech, digital payments, and insurance tech.

Wealthtech is a technology brought to wealth management to make it more efficient, secure, and seamless. With innovative solutions, you can manage wealth better. Besides, with efficiency and security, comes profitability.

So the clients will invest more and won’t look for competitors. So let’s look at how to tap into what wealthtech offers.

How a Business Can Make Use of Wealthtech Solutions

Adopting wealthtech solutions into a business’s operational framework might take some time. Nonetheless, it is definitely worth it, as wealthtech products help companies reinvent the way they handle their assets, which is, without a shred of a doubt, crucial in terms of fiscal efficiency.

Hence, based on the types of solutions wealthtech developers can offer, a business can benefit from:

1. Investment tools. These platforms help companies plan and manage their investment portfolios. As a matter of fact, this type of solution brings a clearer picture of a company’s assets and the most profitable ways of their management.

   
   

2. Digital trading platforms. When a company or an individual is looking for guidance and professional support in real-time trading, digital trading platforms are there to help. Basically, these tools help traders without qualifications and backgrounds make the best trading decisions.

   
   

3. Compliance tools. When it comes to handling finance, legal compliance is a critical aspect. Today’s wealthtech solutions let companies forget about the need for extensive legal support, as their algorithms have all the regulatory matters covered.

   
   

4. Social trading platforms. Believe it or not, there are social networks for traders. These solutions let users communicate with other traders to discuss their opinions and cases; thus, once again, improving decision-making.

   
   

5. Digital wallets. One of the best ways to analyze and manage a company’s business or individual’s income sources and spending outlets. Backed with an extensive tech stack, this type of wealthtech solution brings visibility and advanced accountability to an organization’s cash flow management.

   
   

6. Algorithmics trading. One of the major benefits of wealthtech is that it lets you automate financial operations that have already proved their efficiency. Having a set of preliminary defined instructions, this method of executing orders can perform your trading operations for you. What is more, it can evolve with the help of ML and AI, eventually refining your wealth management.

While all the aforementioned solutions are quite efficient in terms of improving an organization’s financial management capabilities, there are wealthtech solutions that open doors for the next generation of a business’s financial well-being.

We are talking about robo-advisors and KYC onboarding, and these two definitely require a separate discussion.

The Arrival of Robo-Advice

Undoubtedly, wealth management includes gathering, processing, and analyzing vast amounts of information. There are various ways to manage finances, and on your choice, the outcome depends.

Financial advisers and wealth managers are often tasked with dealing with all the data, allowing them to make the best customer-centric decision. In other words, before wealthtech, all the heavy lifting linked to data processes was put on human agents.

Yet, it means there is a high chance of human error, which can mean false wealth management.

In turn, when you have wealthtech development, there is no need to involve a human agent. It is the moment when robo-advice comes to life. This advanced AI-based software uses complex algorithms to process vast amounts of data to present wealth management advice.

Besides, these digital advisors provide fully-automated services and solutions with almost no human supervision. You just need to answer a couple of questions and present some basic information on your wealth management portfolio to get advice that can boost your profits.

With robo-advice, wealthtech can help people expand their investment options. You can get your hands on these opportunities:

• Social trading. It is about investing looks as a social follow by mirroring financial influences.

• Management oversight. Wealthtech development helps automate the security of wealth management portfolios to ensure regulatory compliance.

• Micro-investing. There is an option of investing small amounts of your finances based on the information and investment predictions offered by robo-advice.

All these approaches bring new investment opportunities and make sure your investment portfolio will flourish. Besides, most of the new methods can be automated and done without your control whatsoever.

The Moment of Truth - KYC Onboarding

Yet, even with the five steps of wealthtech integration and robo-advice, onboarding is nothing as crucial. This is linked to the initial user experience within the entire wealthtech customer journey.

If you fail with onboarding, you won’t have a chance to tap into what wealthtech development has to offer.

In short, the KYC onboarding process has a direct link to customer due diligence (CDD), which regulates all the involved financial entities like banks and other financial institutions. CDD is vital for banks to onboard new customers.

From a broader perspective, KYC is important for battling tax evasion, fraud, and money laundering. Without it, there is no secure way to adopt wealthtech.

To bring forward an effective onboarding, you need to verify a customer’s identity as well as evaluate a risk level. Before providing any access to a product, service, or account, a KYC must be carried out.

Once all the information is noted and checked, it is time to use the wealthtech development to the fullest.

Conclusion

Wealthtech is the next evolutionary step in wealth management. The phenomenon brings technology to FinTech, particularly wealth management. One of the first steps to do with wealthtech development is to adopt it into your organization.

To do that, you need vision, a change journey, a tech foundation, a great team, and a new way of working. When dealing with these aspects, you can get your hands on robo-advice and automate wealth management.

In all of that, remember the importance of KYC onboarding to make sure wealthtech can be used in the first place. After all, without proper onboarding, you won’t be able to use wealthtech development tools.