Financial technology, or simply fintech, has recently emerged and undoubtedly taken the lead

in revolutionizing the way wealth management works today. Previously, high minimum
investments limited traditional wealth management to only well-to-do individuals, while
nowadays fintech is allowing people from all walks of life to access it without such
restrictions.

What is the role of Fintech?

Fintech is applied to this field in several ways. Some of the most popular tools that offer
comprehensive solutions for wealth management include

Robo-advisors- Robo-advisors are automated investment platforms that use algorithms to

create and manage investment portfolios. They are typically much cheaper than traditional
human advisors and can be a good option for investors who are comfortable with a hands-off
approach to investing.

AI-powered investment tools: AI-powered investment tools can be used to analyze

investment data and identify potential opportunities. These tools can help investors make more
informed investment decisions.

Financial planning tools: Fintech companies offer a variety of financial planning tools that
can help investors track their progress towards their financial goals. These tools can also be
used to create budgets and manage debt.

Advantages to Using Fintech for Wealth Management

There are several advantages of using fintech for wealth management including:

• Affordability: - Typically, fintech solutions will be much cheaper than the other conventional
wealth management services. This is due to their automated nature that does not require as
much human intervention.

• Accessibility: - Most people can access these services since there is no minimum investment
required on most platforms.

• Convenience: - In terms of convenience, fintech solutions are very good. You can use a
smartphone or computer to access them from anywhere at any time you wish.

• Customization: – The fintech comes with customization features that enable investors’ needs
to be met individually. To this effect, it considers financial goals, risk tolerance and time frame
for investments

Fintech's Revolutionizing in Wealth Management: 3 Key Points

Democratizing Wealth Management: There was a time when only the wealthy accessed
wealth management services. These days anyone can invest through robo-advisors and similar
fintech tools with less commitment, lower minimums and an enjoyable online platform. This
transition is particularly popular among younger cohorts (Gen Z and millennials) who have
grown up with digital tools like fractional share Examples include fractional share investing
with True Wealth, sustainable investing with Inyova, and alternative investment platforms like
Splint Invest. Fintech has made wealth management accessible, just like the internet did for
information.

Enhanced Customer Experience: Tech-savvy investors today expect a better deal. They want
lower fees, personalized investment options, and transparency. They crave control and
information, preferring real-time portfolio management via mobile apps over quarterly reports.
Fintech delivers this improved experience by:
o Offering mobile apps for real-time portfolio management.
o Providing ESG (environmental, social, and governance) options for ethical investors.
o Educating users with investment content, online communities, and learning resources.

These features cater to the modern investor who seeks control and information alongside
investment guidance.

Leaders in Fintech Wealth Management

Some of the leaders in fintech wealth management include:

 Betterment
 Wealthfront
 SoFi
 Acorns