bankingciooutlook

3 Fintech Ways Modernizing Wealth Management Industry

By Banking CIO Outlook | Tuesday, July 30, 2019

FREMONT, CA: Fintech is in the process of disrupting the traditional wealth management industry. Rapid developments are witnessed in the field of digital wealth management, with additional possibilities expected in the near future. Financial technology is the convergence between financial services and modern techniques to enhance existing products and services. Fintech is seen as a driver of innovation. In the wealth management sector, the adaptation of financial technology has ushered to the development of digital wealth management services and platforms. There are many factors why the future of Fintech in the wealth management industry is proficient.

• Security

Security matters recommence to be a trend in Fintech. Security remains a concern for many, While new technologies can break down barriers between clients and their data. Innovation in fields such as identity affirmation and the managing of documents and data is still a necessity to the widespread adoption of many financial technologies.

• Personalization

FinTech can upgrade the client experience by tailoring solutions and services to their specific needs. The future of Fintech will see personalized modeling that can anticipate significant events in a client’s life. Forecasting can classify potential consequences, allowing for more reliable decision making. Wealth managers will be able to use financial technologies to analyze client personas using psychographic data. The use of big data for personalization can result in improved identification and qualification of risk.

• Streamlining the Omni-Channel Experience

With the emergence of digital wealth management solutions, many consumers are taking their wealth management experience online. This results in many points of contact across multiple devices that will have to be streamlined. Consistency remains an integral part as few are comfortable with an interaction model that is purely digital or online.

Digital wealth management and financial technologies and offerings still have shortcomings and areas for advancement. The advancements in Fintech and increased collaboration between the wealth management and Finance industry will result in higher adoption of new technologies.

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