What Is WealthTech?

UTC by Beatrice Mastropietro · 9 min read
What Is WealthTech?
Photo: Depositphotos

Wealthtech is the term used to describe the intersection of technology and wealth management. This guide will reveal what wealthtech is and some of the most popular companies in this industry today.

Wealthtech is a term that refers to any company that delivers technology-based solutions within the financial services industry. This includes companies working to build new products or solutions and those looking to disrupt traditional ways of doing things at their core.

The term has its roots in fintech, but knowledge about wealthtech may not be as widespread. And yet, wealthtech is a natural step in the fintech landscape. As wealth management services have been quick to adopt new technology-driven solutions and consumer demands continue to evolve, businesses have had to adapt to keep up with client expectations.

Wealthtech companies include software producers that develop tools for asset managers or brokers, many online brokerage capabilities, and more. They also provide financial data analysis services. These companies help existing players improve their services.

The Concept of WealthTech

Wealthtech, or wealth management technology, describes companies that provide wealth advisory services using modern technologies. These include online financial advisors, Robo-advisors, digital wealth managers, and digital investment platforms. There is no generally agreed definition of what constitutes a wealthtech company. Here, we will define it as an organization that directly or indirectly acts in the advisory space by offering automated tools to provide advice to affluent clients. It is important to note that this includes any platforms with client interaction in addition to pure automation.

Wealthtech companies help investors increase their wealth by delivering solutions in the following areas: investing, financial planning, banking, and borrowing.

As the term itself combines ‘wealth’ and ‘technology’, wealthtech helps the rich manage their wealth. Technology is used for managing investment or instruments online to invest money from anywhere in the world. Wealthtech has been evolving over the last few years, and it uses technology to automate its processes. In short, wealthtech companies use software programs to create automated trading systems with less risk and more profits for investors/traders. The main benefit of using these software programs is that they help traders understand market patterns quickly rather than using human expertise, which gives time to learn and understand.

The main goal of wealthtech is to make people’s lives easier and more profitable. Technology helps in creating automated trading systems with less risk and more profits. Rather than using human expertise, they use software programs to understand market patterns, which saves time and effort quickly.

Wealthtech companies have a big impact on the lives of wealthy people. Using these software programs helps traders understand market patterns quickly. Furthermore, they make it easier for investors/traders to manage their wealth from any part of the world with less risk. In addition to that, wealthtech creates an ecosystem where everyone gets fair opportunities to make more profits by investing in cryptocurrencies or other instruments without depending much on luck or chance. Henceforth, investors and technology benefit from wealthtech, which also helps the nation’s economy grow faster because investing is one of the major reasons behind economic development.

The adoption of mobile banking and other emerging technologies such as cloud computing may soon represent the new normal for accessing financial services. At least that’s how it’s starting to look. Even some of the most staid institutions in the financial industry are adopting more advanced technology platforms to compete with smaller, nimbler rivals or at least give their customers what they want.

Tech-savvy younger consumers who have embraced digital tools on every other facet of their lives demand more from companies providing them financial products and advice. That means secure apps on mobile phones that enable real-time sharing of information between clients or prospects about investments, portfolios, or insurance policies. It also means conducting transactions wherever a wireless hotspot can be found.

In a study released at the very beginning of 2022 by Accenture, an international consulting firm, one-third of 2,000 high net worth investors polled said they are already investing more time and money in technology than ever before. In addition, about 40% of those polled said they would stop working with a financial advisor who didn’t have access to the latest technologies.

James McGovern, managing director and CEO of First Republic Investment Management in San Francisco, said:

“There’s no question that technology is going to play a bigger and bigger role. When you combine investment management with sound wealth management principles and add in the ability for clients to share information securely using new mobile banking tools — we call it ‘mobile wallet’ — we think we’re delivering a great client experience.”

The march toward mobile banking and other new technology platforms underscores how quickly change can occur and how important it is for advisory firms to stay agile and innovative if they want to survive and prosper over time, according to industry observers.

Services and Solutions Offered by WealthTech

WealthTech companies offer services and solutions in investment management, financial planning, risk assessment and mitigation, tax optimization, algorithmic trading, and portfolio allocation. WealthTech also includes data analytics and digital consumer banking solutions such as Robo-advisory (automated portfolio allocation with minimal human intervention).

AlgoDynamix provides algorithmic trading solutions that enable traditional wealth managers such as asset managers, hedge funds, and family offices to take advantage of quantitative trading methods for future returns on their clients’ investments. AlgoDynamix also provides automated portfolio diversification services based on risk management and investment preferences. The company’s flagship product – an automated investment allocation algorithm – provides diversified portfolios for individual investors, families, and institutions.

Guavus is a provider of next-generation data analytics solutions for wealthtech companies operating in the financial services industry, designed to help them make better use of their clients’ data assets. Guavus uses big data technologies such as Hadoop, Cassandra, MongoDB, and Spark to collect streaming data from various sources at the network’s “edge.”

MyBnk provides digital consumer banking solutions for young people who are interested in saving money but have limited access to traditional banking services due to a lack of formal identification or credit history. MyBnk offers young people between ages 11-25 savings accounts and credit cards that they can use to make purchases both online and offline (in-store).

WealthArc specializes in the provision of digital wealth management services for affluent customers. The company’s cloud-based platform integrates compliance, security, risk analysis, and data tools to provide financial advisors with information that enables them to make informed investment decisions more quickly.

Retail banking services can charge their customers relatively high fees for low-value personal loans based on inadequate credit information leading to increased risks of defaults or fraud.

The Impact on Wealth Management

The growth of wealthtech has been unprecedented and is expected to continue due to increased consumer demand for greater access to information about their finances. While it’s common knowledge that millennials have been quick to adopt technology for other industries, what isn’t so well known is how this trend will impact the financial industry as a whole and those who choose to invest in stocks.

While technology has already impacted the wealth management industry, it is projected that there will be a significant shift in consumer preferences within the next years. Instead of favoring traditional investment funds, millennials are expected to prefer investments in tech companies and other alternative assets. Those who invest in stocks may benefit from keeping up with the latest news and using other tools that will help them remain competitive.

Wealth management has traditionally been the domain of the affluent, but thanks to new technologies, it is becoming more accessible. The term ‘wealthtech’ refers to new financial services that leverage technology specifically designed to address the needs of high-net-worth individuals (HNWIs) and ultra-HNWIs. These include digital advice, accelerated investing, and smart tools that serve the underbanked or unbanked population.

As with any disruptive technology, wealthtech is redefining the wealth manager’s role in developing an increasingly personalized relationship between clients and their financial advisors. The availability of smartphone apps combined with cloud computing has allowed millennials to have better control of their finances while still in school or early in their careers. Wealth managers use these same technologies to gain insight into client behavior patterns and carry out transactions more quickly than ever before.

Wealth managers need to tread carefully and ensure they do not cede more control than they intend to when employing new technologies and innovating their business models. They should also consider how these new partnerships can benefit both parties while delivering value for their clients.

Future of WealthTech

Wealthtech is a term used to describe financial services and technology convergence. It encompasses two phenomena: financial technology (fintech), an industry of web-based companies providing financial services, and wealth management, a cross-border business that combines innovative technology with traditional finance for high net worth clients. At its core, wealthtech is about increasing efficiency. It uses technology to improve distribution, brokering, trading, customer experience, and digital relationships.

The impact of technology on the wealth management industry is unmistakable. Technology has transformed how wealthtech companies are building relationships with prospective clients, allowing them to reach large audiences in a short amount of time. It has also influenced the way existing relationships are managed. For example, many wealthtech companies are using innovative technology to track their clients’ investments. This is especially useful in cases where a client has multiple assets under management that various institutions hold.

The current state of wealthtech reflects an industry that is still in its infancy. However, it does provide a glimpse into the future. As technology continues to evolve, we will see it having a significant impact on how people invest and manage their wealth.

2021 saw its share of upheaval on Wall Street. For example, Fidelity Investments Inc acquired 77% of Robo-advisor Betterment and private wealth management firm Orbis Investment Advisory which focuses on ultra-high net worth individuals with at least $30 million in investable assets. Fidelity also started expanding its one-year-old “Robo” platform to include noninvestment accounts such as college savings and mortgages.

However, not all financial advisors are rushing out to buy technology platforms or merger and acquisition firms. At least not right away. A potential drawback is that technology makes it easy for advisors to take on too many clients with small accounts, resulting in smaller returns for the firm over time.


Wealthechs enable customers to invest in any investment product, including stocks, ETFs, funds, real estate investment trusts (REITs), etc. They provide tools that allow clients to set their own goals and personalized rules for managing assets according to different life stages. Some platforms prioritize risk management while others maximize returns. These platforms also offer automated portfolio rebalancing according to client preferences, which is a significant benefit for people without the skills to manage investments themselves.



What is wealthtech?

Wealthtech is a term that refers to any company that delivers technology-based solutions within the financial services industry. This includes companies working to build new products or solutions and those looking to disrupt traditional ways of doing things at their core.

What are the use cases of wealthtech?

WealthTech can be used to manage your finances, invest in stocks and other assets, and more.

What impact does wealthtech have on wealth management and the financial advice industry?

Wealthtech has a strong impact on overall wealth management and could become a dominant player in the industry.