Innovative WealthTech solutions in Investment Management

6 min read
Feb 21, 2022 12:30:00 PM

Wealth technology, or simply WealthTech defines the execution of technology advancements like Big Data and Machine Learning serving more efficient tools for investment management and consumers in general. It is the convergence between wealth management and digitalisation.  

Currently, the way assets are being managed by the investors and financial firms are coupled with the tools being executed for more than a decade. As the world advances with technology, a certain type of democratization became the need of the hour.  

Experts in wealth management are now exploring intuitive digital tools to manage investments with innovative and errorless solutions to increase the returns of respective portfolios. This innovative kinship between wealth/investment management with the blend of tech trends is simply put WealthTech. 

WealthTech & FinTech 

WealthTech is a big chunk of innovation within Finance technology (FinTech). FinTech has completely changed the face of the industry today with a mature understanding of finance and economics with the effective expedition, unknown till now.  

The online operations of the financial sector are regulated by a series of regulation that ensures the safety and security of financial institutions, organisations as well as individuals. The regulatory framework is provided by AML5 and eIDAS for online financial, investment and banking services.  

Companies following WealthTech services must follow the same rules that apply to the FinTech sector. The technology helps companies to offer online investment services that must comply with the existing regulations and standards of the finance industry.   

The ecosystem of WealthTech Industry 

WealthTech Industry does not aim to replace the professionals, but the idea is to assist the professionals as per customers’ needs. WealthTech incorporates technology for end-users and investment management professionals allowing them to improve the business scale.  

B2B WealthTech companies provide services to independent consultants and banking institutions to rebalance their users’ portfolios. B2C WealthTech companies, on the other hand, aim at serving portfolio management tools for direct users.  

Currently, many WealthTech companies are serving as digital advisors offering ETF advisory to enhance interactions between advisors and investors. Some WealthTech companies offer automated investments for end-users allowing investors to make better returns with stocks, mutual funds, and other ETFs. 

WealthTech ecosystem focus on many types of services. Some of them are as follows: 

  • Investment Tools 

The WealthTech industry offers syndicated digital tools that analyse software programs. This helps in monitoring investment planning, automation software, and portfolio management. The industry also works on investment modelling through Artificial Intelligence to support better investment opportunities.  

  • Online Marketplaces 

The WealthTech industry closely analyses the online marketplaces to serve the best investment portfolio available on online platforms. The WealthTech industry works on several tools to perform the best market analysis for online investments.  

  • Portfolio Management 

WealthTech Institutions manage portfolio investment for financial firms and their investors from a single location. One such model is multi-asset class portfolio analysis that is highly encouraged by financial institutions.  

  • Compliance Management 

RegTech, like WealthTech, is a fast-growing sector in finance. RegTech is a term that refers to the use of technological solutions to regulate regulatory compliance. WealthTech and RegTech collaborate to guarantee that all financial transactions comply with regulatory requirements. 

  • Robo Advisors 

Robo advisers are digital tools that conduct procedures for the user or customer using machine learning-based methodologies. Depending on how the user has designed the programme, they can invest automatically across a variety of instruments. The purpose of such software is to enable investors to make quick and informed investment decisions. 

  • Trading Platforms 

Trading platforms have been assisting investors and market analysts to read the market and follow a profitable pattern. WealthTech companies are now developing additional functionalities to improve the trading experience for investors at large. 

  • Financial Advisors 

WealthTech companies work intensely with Big Data applications AI-based decision making to provide accurate financial advisory services to the users. As the technology is advancing, it is vital to keep the financial services updated with the relevance of data accuracy and efficiency, as supported by WealthTech companies.  

  • Social trading 

Investors may share their trading experiences through social trading. It combines the idea of trading platforms with the idea of social media. Here, traders can replicate the investment models of other traders who have shared their opinions. Thus, novice traders can now learn from more experienced traders. 

  • Algorithm Trading 

WealthTech companies are colliding with trending technologies to enhance and automate real-time trading. It is called algorithm trading where users can configure their trading experience well-suited for their requirements.  

  • Micro Investment Management 

Micro-investing is becoming increasingly popular in WealthTech. It permits microcredits or tiny deposits to be made. People who have never invested before can get started with micro-investing. 

  • B2B software services 

A significant number of WealthTech businesses collaborate with investment firms. They create game-changing software for professionals in the investing, saving, wealth, and trade-related industries. They also provide technical support to these firms. 

  • Big Data services 

B2B clients can benefit from WealthTech firms' specialised analytics offerings. Financial services formerly lacked accurate insights due to limited and unstructured data and had to rely on manual analysis to make investment recommendations. Investment choices, on the other hand, have gotten a lot easier thanks to analytics and big-data technologies. 

Impact of WealthTech on Financial Advisory Industry 

It is because of the recent advancement in WealthTech that the entire financial industry is now growing exponentially. The traditional wealth management services are now being transformed due to effective solutions offered by Big Data and Artificial Intelligence.  

For augmented growth, many large financial advisories are now collaborating with fintech businesses to develop technology-driven proprietary tools for better returns and exponential growth.  

Since the success of financial advisories is also measured by personalisation, WealthTech companies are working on advancement to serve human pronounced services to high net-worth individuals. WealthTech Industry works precisely on developing particular skills with a key focus on attracting new clients to the financial advisory firms. 

Future Prospect of WealthTech Industry 

WealthTech has already introduced many considerable innovations that are driving businesses for the financial sector. The industry is innovating with exciting advancements to hold a better future as well.  

Shortly, it is plausible that financial advisors and large financial companies will depend completely on innovative services driven by WealthTech for better investment benefits.  

Data security being the concern of present and future for financial firms, WealthTech firms are already working on solutions to prevent security breaches. This will help with the prospect as well since many technologies are now being introduced to improve data security at large scales. WealthTech, in this manner, will bring more relevancy to the industry. 

WealthTech companies need predictive analytics technology to survive because it helps them get insights into customer behaviour and demands so they can enhance services and products. "Asset management organisations using predictive analytics generated an average 11 per cent rise in the number of clients in the last twelve months," according to many studies. 

Cloud computing will also be a prominent trend in wealth technology since it allows for long-term growth. The birth of blockchain technology has resulted in the creation of new asset classes and will continue to do so in the future.  

Finally, quantum computing will aid wealth managers in dealing with information overload and improving long-term investment decisions. 

WealthTech Market Opportunities in the Asia Pacific 

The Asian WealthTech industry has the potential to develop in the next years, thanks to the increased use of digital platforms in South Asia and a growing number of investors. 

The Asian community, on the other hand, is wary of stock investments. The number of Demat accounts, Mutual Fund folios, and Asian Equity Markets has increased dramatically in recent years.  

Because of the end-to-end digitalization of processes, WealthTech has experienced growing acceptance. Almost anybody can get started investing because of the ease of access that these digital platforms give. 

COVID-19 had a negative influence in March of 2020. Since then, though, the Asian stock market has been on the mend. Over the last few years, WealthTech has attracted a lot of attention.  

The younger generation has had a higher rate of adoption. Millennials currently account for 70% of the user base. Furthermore, Asia has made a significant investment in WealthTech. The use of digital platforms in Tier 2 cities will help to boost the sector's growth. 

In addition, the epidemic has benefited new investors. Many people have benefited from investing as a result of the economic crisis. 

WealthTech has changed the way advisers and customers think about money. It has presented the market with new problems as well as new possibilities. This involves coming up with new ways to apply technology while concentrating on data security, predictive analytics, and more for WealthTech businesses. It entails offering value that goes beyond the capabilities of algorithms for financial advisers. 

Role of TransformHub in the WealthTech industry 

In the world of technology and advancement, TransformHub has been assisting many Fintech companies and large enterprises with WealthTech development services. The dedicated team of professional offer a wide range of WealthTech solutions that serves innovative prospect to change the face of financial advisory services.  

It is the deep knowledge and understanding of the subject that makes TransforHub an ideal and innovative technology partner. By adapting advancements in trends like Artificial Intelligence and Machine Learning, the company is delivering high-end services to enterprises for a new phase of wealth management security. 

So if you are in a need of a technology partner to assist you with the ideal WealthTech explication, contact us today for a better understanding. You can either email us your requirement on, or call us on +65 31384660.