Business Automation using Microsoft Power Platforms
Binding seamless Technology with Finance
General Published on: Fri Feb 10 2023
In the last decade, one thing that’s rewritten history in fintech or financial technology. Not only has it given increased power to the consumer, but it’s also allowed firms to obtain detailed information about their user’s habits. Traditional and household names have been in a frenzy to purchase and acquire firms in an attempt to keep pace with the evolving landscape.
Wealth management is no exception to his evolution in finance with companies such as Robinhood coming along and shaking the way we’ve always known business to be. Stash is another company, that allows people to invest in fractional shares.
According to VisualCapitalist.com, the following data points attract users to various platforms.
If we break this out in a bit more detail, the first development we saw was increased speed in money transfers. Even a decade ago, money transfers were slow compared to today. Now, we can instantly transfer money using platforms such as Venmo, PayPal, and CashApp. We still have more traditional means such as wires and ACHs, but these fintech firms have begun dominating the money transfer space.
Touched on already, one of the greatest competitors to the wealth management space are these firms offering modern investment techniques and benefits at little to no cost. Robinhood burst into the investment space with free trades. Since then, the larger firms have taken note and offered free stock and ETF trades for their clients as well.
Stash broke onto the scene by offering their users fractional investment. This means people with $5 could invest in mutual funds and stocks with small or large sums of money. Offering these services attracts users because it makes investing slightly more attainable for some.
Other spaces that have changed due to fintech include lending and insurance. Now, you can obtain a mortgage or personal loan without ever needing to leave the comfort of your home. With electronic signatures and secure portals to transmit information, the process has become more efficient than ever before.
All this means for wealth management firms across the country is a greater need to control products, services, wealth management technology solutions, and information. Certainly, firms may not be able to offer everything but understanding where your client’s mindset is can help set expectations. By understanding what your clients want, you can quickly adapt and build trust with your clients by offering feature-rich wealth management software solutions.
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