In the WealthTech or digital investments space, we have seen quite a few players trying to disrupt parts of the existing value chain by focusing on simpler and lower-price alternatives or through platform-style solutions that include some crowd or social elements.
Five major trends
The next wave in WealthTech will be defined by the following five major trends:
(1) smartness: The WealthTech future is smart – or at least smarter than today. The increased usage of artificial intelligence, augmented reality as well as smarter algorithms for investor profiling, advisory scenarios and investment process design, will add significant value to the WealthTech customer.
(2) voice as future channels: People are adapting ‚voice‘ as natural communication channel in human-machine interaction. There are quite a few use cases (e.g. ‚talking to your robo‘) for voice in WealthTech as well.
(3) new customer segments: Digital investment solutions are often associated with the hyped generation of Millennials, very demanding digital natives with supposedly huge future potential. We expect substantial spill-over effects into other customer segments. WealthTech will be the new normal for most retail investment customers.
(4) market cleanup: As incumbents like banks and asset managers put digitalization on top of their agendas promising niche FinTechs are getting rare. We will see quite a few FinTechs leaving the market due to a lack of traction and / or financial backing.
(5) market maturity / regulation: WealthTech FinTechs are providing more mature business models, which leads to greater exposure to regulation – that is where RegTech comes in (but that’s a different story for a different book).
The best is yet to come
All in all, we will see more ‚financial smartness‘ and more ‚financial creativity‘ in the WealthTech arena, which is freely adapted from Einstein: ‚financial intelligence having fun‘.
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