Fintech is collaboration of finance and technology. Technology such as Artificial intelligence, machine learning, big data is used to eliminate risks, provide optimum output and increase the investment opportunities. Today, fintech is rapidly growing as many new start-ups are emerging in this domain. Fintech mainly has a financial focus. Fintech has various verticals. One of them is wealthtech.
Some changes are being made in the wealth management industry today. The money which was managed and dispensed through traditional methods is now being disrupted. Therefore, the people who are affected because of this are operating in a new landscape. The technology has bought manly major transformations in the finance industry. The technology used in the management of wealth is mainly responsible for all these changes. Wealthtech is considered as one of the biggest vertical in the fintech.
Wealth tech is basically the use of technology and digitalisation in enhancing the wealth management process. It uses technology to improve the investments by providing better accessibility and convenience. Is has provided help in wealth management during the period of major changes and transformations. More advanced technology is being harvested for enhancing existing solutions and also explore some alternatives. Technology like artificial intelligence, machine learning, natural language processing is being incorporated to come up with efficient solutions.
This is surely obvious with regards to the most recognisable wealthtech solution for date: robo-warning. This computerized administration includes utilizing AI calculations to decide the perfect investment portfolios for clients, considering their risk preferences. What’s more, with an attention reducing the charges and exposing the net to a larger audience than that of conventional wealth consultants, robo-guides are figuring out how to create incomes through lower margins and higher volumes of exchanges. Yet, while AI has taken over a great part of the human contribution to the robo-advisory procedure, no doubt numerous clients inside this space despite everything lean toward a hybrid answer for dealing with their benefits, one that includes the shrewdness of the human touch along with convenience achieved through automation.
Nevertheless, automatic robo-advisory is set for a splendid future. A January 2018 report from Juniper Research found that robo-guides “under full control of AI frameworks” will reach $987 billion for each annum in resources under management (AUM) by 2022. Completely automated “robos” will speak to around one-fourth of the total robo-advisory AUM in 2022, and Juniper ventures they will effortlessly outpace the incomplete automated advisory guides that depend less on AI. Undoubtedly, Juniper assesses that such robo-advisors will grow their AUM at 155 percent for each year on normal versus 69-percent development for the general market.
There is a huge increase in the number of new emerging companies in the financial and banking sector which are contributing to the development of wealth management. With the effective use of modern technology and its implementation, the process of managing wealth can be made more efficient and secure. With people and companies actually showing interest in this field, more money is being pumped in which will provide and impetus for developing new technology and coming up with new creations.