Invisible Finance: Designing Frictionless Fintech Ecosystems for Wealth Managers

Today we are living in an evolving landscape while financial technology is getting more and more advanced. At the latest, there is a concept of invisible finance, which is gaining more traction and prominence. This is particularly true when it comes to wealth management. Invisible finance is an approach that emphasizes more on seamless integration with financial services into the daily activities of their clients. This enhances user experience and reduces friction.  

Such a design of a frictionless fintech ecosystem is beneficial for wealth managers as it provides them with more initiative and efficient services. It helps wealth managers provide services that align with the modern expectations of clients. 

What is Invisible Finance? 

Invisible finance is envisioned to be the future of the fintech industry. It refers to the integration of financial services in everyday activities and platforms to ensure it becomes convenient. It will be designed to become so much integrated into our daily activities that we barely notice that the transactions are taking place. Frictionless fintech is all about making finance an everyday activity and not some separate activity to create a natural experience. It allows non-financial companies to provide financial services and products directly within their platforms. 

For instance, when it comes to a ride-sharing application that offers a loan to upgrade a car or a social media platform that will allow you to invest in stocks directly from your profile. These are only some of the examples of embedded finance which is also known as invisible finance. For wealth management, it is all about integrating investment tools, portfolio tracking, or financial advice into the platforms that are already used by clients rather than asking them to login to a separate account. 

What are the advantages of a frictionless fintech ecosystem? 

• Improved client experience – If you are a wealth manager, it is important for you to manage investments for your client. For instance, if your client is managing their investment while checking their social media feed or paying bills, it provides them with an increased level of convenience. Such integration can improve client experience as it increases engagement, reduces friction, and creates strong relationships between wealth managers and clients. Therefore, we also provide wealth managers with more opportunities to provide personalized feedback as they will be able to get a deeper insight into the financial behavior of their clients with the integrated platform. 
• Improved accessibility – Traditional wealth management is all about feeling exclusive, as it requires significant financial knowledge along with a level of wealth in order to get started. However, when it comes to invisible Finance, it actually breaks down such barriers with wealth management tools. These are accessible on everyday platforms. It opens opportunities for younger demographics which were overlooked by the traditional financial institution. 
• Real-time data integration – With a connected ecosystem, wealth managers will be able to provide a consistent stream of real-time data. Therefore, they will be able to understand more about the preferences and activities of their clients. Such activity will help wealth managers to provide personalized and proactive advice. For instance, when a client is ready to make a bigger purchase, wealth managers can properly analyze the impact on the portfolio and provide customized recommendations. 
• Improved operational efficiency – Wealth management automation is of utmost importance. It is at the heart of the frictionless fintech. By automating routine tasks like reporting, portfolio, rebalancing, and client onboarding, wealth managers will be able to get more time to pay attention to other activities that require more focus, which include client communication, personalized investment strategies, and strategic planning. This will reduce operational costs and improve overall operational efficiency. 

How to implement a frictionless fintech ecosystem? 

• Leveraging advanced technologies – Machine learning and AI are important to understand client behavior, deliver personalized recommendations and predict market trends. These technologies can easily analyze a huge amount of data to identify insights patterns and provide proper information. Remember that it would otherwise become impossible for humans to properly detect, and therefore, it enables wealth managers to provide effective and customized advice to every individual. 

• Developing robust API – API can be referred to as a glue that holds the invisible finance ecosystem together. A properly designed API can enable seamless data exchange and proper functionality between different platforms. It, therefore, ensures a smooth and consistent user experience. This would require proper collaboration and careful planning with the technology providers. 
• Pay attention more to user-centric design– The key to success is creating such interfaces that will glue the attention of users. Such interfaces are intuitive, seamlessly integrated and easy to use by clients. A poor interface will create a poor user experience, which will take the actual benefits of invisible finance. Wealth managers, therefore, are required to invest in proper user design and research to ensure that they are providing an engaging and user-friendly experience. 
• Make sure of compliance and security – Trust is known to be one of the most important aspects of financial services. Clients are required to be confident when it comes to security, and therefore, the platform needs to comply with all the relevant regulations. Wealth managers require prior prioritizing of security and compliance throughout the implementation and development process. 

What is the future of wealth management associated with invisible finance? 

It can be anticipated that the future of wealth management will be linked with invisible finance. The shift prioritizes seamless experience and client centricity, which is much different from traditional experience and interaction. As technology keeps accelerating, wealth managers will be able to embrace the ecosystem powered by advanced technologies to provide the best services. They will be able to quickly anticipate and meet evolving requirements with tech-savvy clients and gain a competitive edge. 

The transformation involves digitizing existing processes and needs rethinking the way financial services can be delivered in a better way. Wealth managers who are willing to navigate the complex landscape and build a frictionless fintech ecosystem can partner with experienced technology providers like Hexaview Technology. Being a leader in financial technology solutions, they provide expertise and advice with wealth management platforms. With a focus on success and innovation, they have always provided the best experience to drive business growth and provide better client experience.