The Role of Technology in Driving Wealth Management

There is a new generation of investors emerging, with radically different values and expectations. As more wealth is being transferred from older to younger generations, there is an increasing strain on wealth management services providers to meet the expectations of tech-savvy, investment-aware, younger generations. Technology will enable us to meet the needs of this new generation of investors.

Over the last 18 months, the wealth tech industry has spurred a significant wave of innovation and experimentation. Moreover, wealth tech is playing such a significant role in society that the market is predicted to be worth $18.6 billion by 2031.

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Digitalization of wealth management

Wealth management firms continue to digitalize their services and processes – from account opening with paperless onboarding, fast and convenient self-service options to portfolio management. These capabilities all make it easier and more convenient for clients to access and manage their wealth. Some of the key topics that are influencing the digitization are:

  • Customer experience and Operational Efficiency - This generation demands multichannel service and a first-rate customer experience in the form of hyper-personalization and operational efficiency, which many suppliers lack or aspiring in their offerings. Wealth managers and advisors need to close this gap if they want to avoid a long period of stagnation. AI and ML will be increasingly integrated into wealth management to automate processes, analyze investment data and make predictions / suggestions for portfolio management.

  • Data driven wealth management - Data analytics and visualization tools extract value from existing wealth tech data. Customers are not only looking to generate reports from data, but they also want data to make informed investments and business decisions with actionable, meaningful, and usable insights. Advanced analytics, cognitive tools, and machine learning can be leveraged to extract maximum value from the vast data which every wealth management firm possesses. Wealth managers will have to deliver insights via interfaces that are tailored to each customer’s preferences and wealth goals ensuring a journey into personalized finance.

  • Agile Transformation Culture - In an era of fast moving world, Agile mindset is essential and is something every wealth manager will come to adopt. Agile methodologies help to deliver solutions to complex problems faster and thus garner feedback quicker, enabling wealth tech companies to more deeply understand customers’ mindsets and needs. In turn, companies can iterate products and services accordingly to ensure products carry genuine value for users.

  • Cybersecurity - As the financial industry becomes more digital, cybersecurity will be a top priority and wealth management firms will need to invest in the latest security measures to protect client data and assets

  • Tokenization of assets - Tokenization, which involves representing assets as digital tokens on a blockchain, will gain more traction and offer new ways to invest in and trade assets such as real estate, art, and commodities.

ESG – Responsible investing

Investors are increasingly looking at ESG (Environmental, Social Governance) factors before deciding to invest in portfolios. Wealth managers who can offer portfolio solutions with sustainability in mind have an advantage since ESG has become central in corporate decision making. Data supports this notion as more than 80% of Gen Z, and two-thirds of millennial investors, have exposure to ESG investments – meaning they actively seek more ethical wealth-building routes.

Tech solutions to capture and measure sustainability on a much deeper level than value judgment will enable Wealth management firms applying these non-financial factors to identify growth opportunities.

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Designing digital products in wealth tech

Wealth Management is multi-tiered, highly tailored to individuals and requires wealth management tools to inspire confidence. Design in WealthTech starts with a deep understanding of consumer types, their individual journeys and their specific and evolving needs.

Wealth Managers need customer specific and relevant insights presented intuitively. This, coupled with user interfaces that prioritise decision making, enables Wealth Managers / end users to take the actions necessary that work in the best interest of their clients, and in turn the wider economy.

Understanding journeys and needs helps onboard users at the right times, making the tools relevant, personalised, and ultimately empowering.

For instance, intive recently partnered with UK-based Pockit, a FinTech with prepaid spending cards, checking accounts, and financial services for customers that can’t access traditional banks. intive helped Pockit integrate an inclusive onboarding process, as well as develop faster and simpler customer journeys. With this smoother design, more people can open Pockit accounts in a matter of minutes and stay atop of their finances 24/7.

Along the way, wealth management firms will need to focus on providing financial education and wellness programs to help clients make informed decisions and plan for their financial futures.

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How intive enables wealth tech businesses

At intive, we’re digital enthusiasts and we're connecting industry expertise, design and engineering to help our customers drive business success.

Our award-winning design studios combined with our world-class delivery centers empower clients across the digital lifecycle. The way we do it is through:

  • Design - We work with our clients to co-ideate - performing research, holding design workshops, sprints, and more to draw out ideas to help build the right things, the right way.

  • Discovery - Once we have valid ideas, we discover which ones will likely lead to tangible useful products for customers.

  • Deliver - We work with our engineering centers to build digital products that improve customer experience and engagement including integrating with third party products for core services and by following the below design-led approach from exploring to shipping.

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