For the longest time, wealth management services were considered the preserve of several institutions and companies that controlled a large share of the industry. By its very nature, wealth management is perceived as an avenue that serves wealthy and affluent clients. Yet while this continues to be the case, the rise of fintech solutions has increased the availability of wealth management services to a proportion of clients who would otherwise not have benefited.

To say that fintech has become a near constant in the modern world is to put it lightly. With a variety of solutions available for multiple target audiences, there are plenty of options for investors. This growth in fintech has seen the solutions morph from money transfers and payments to solutions that offer almost-instant trading options, among others.

Razi Salih

As Razi Salih – an entrepreneur with years of experience establishing projects in the financial sector – knows, retail investors have gone wild for these solutions, and their use has made it possible for more innovations in the traditionally-reserved wealth management space.

How Fintech Works in Wealth Management

Fintech’s ability to cut across the wealth management industry has been made possible by the innovative technologies it leverages. From big data to blockchain and artificial intelligence (AI), fintech combines the best of these technologies to automate processes and help investors (both retail and corporate) to control their assets.

Each of the aforementioned technologies has its benefits, some of which are elaborated on below:

  • Big Data: Financial transactions produce large amounts of data, which, when combined with other “non-traditional” sources such as web traffic, can help investment companies come up with smart algorithms that maximize investment opportunities. In the fintech world, more data sources means more avenues for innovative application.
  • Blockchain: The distributed ledger concept that blockchain offers is a protective measure that wealth management solutions integrate for an added layer of protection. To clients, such technology ensures that transactions are transparent and that the underlying platform is reliable.
  • Artificial Intelligence (AI): AI analyses huge data subsets and recognizes patterns to eliminate any “gut feeling” reactions to investments. These patterns form the basis of automation, which helps in simplifying the decision-making process and means that resources can be allocated to other areas. As AI continues to grow, it will be possible for it to even integrate voice-based interactions into the wealth management process.