Demystifying Investment Software: Wealth Tech Drivers of 2023

By Valuefy

February 24, 2023


The pandemic stimulated a big shift towards digital banking and wealth management turning 2022 into the wealth management industry’s disastrous year amid a major war in Europe, rolling lockdowns in China, double-digit inflation, high rise in interest rates around the world, etc. Wealth management is becoming more consumer-friendly, affordable, and accessible than ever before. As the serviceable demographic of the wealth management industry changes to millenials who are coming of age in terms of their investing prime, there is a need to shift the methods and technologies in the space to accommodate their tastes and preferences.

Tech-savvy millennial customers have come to expect on-demand access to their portfolio data as well as 24X7 monitoring and customer support. Forward-looking wealth management firms are adopting Data science, Robo advisory, and Portfolio analytics solutions to power their management and operations strategy in order to tailor them to suit this customer demographic.

However, there’s a lot of ambiguity and misinformation out there on what these technologies can and cannot do. This is leading to fearmongering amongst the Wealth management community that Human Advisors are slowly being phased out in favor of their Robo/Tech counterparts. Here we’ve tried to clear the air on what Investment Technology is capable of and what lies outside its scope.

Robo Advisors:

Fiction: Robo advisors are here to replace human Wealth Advisors.
Fact: Robo advisors offer a customized investment strategy and recommendations based on data gathered on investor’s risk tolerance, objectives, time horizon, and other background demographics. Although Robo Advisors are an extremely powerful tool, they have their limitations, especially in the case of individuals with complicated investment goals such as estate planning, taking care of dependents, or saving for illnesses. Robo advisors can assist Wealth Managers or Investors as part of a holistic investment plan, however, they are not a one size fits all solution.

Wealth Management Platforms:

Fiction: Wealth Management platforms are not used by High Networth (HNI) Clients.
Fact: HNI Clients expect exceptional customer service and availability 24X7. Online wealth management platforms help them monitor their portfolios and finances on the go and help them have more insightful conversations with their wealth managers. HNI clients, in fact, prefer a ‘High touch’ approach, a blend of Human and Robo capabilities. Technology gives them instant access and insights into their finances and Wealth advisors can step in when they face a particularly complex problem or financial goal. This ‘High touch’ approach helps free up advisor time to cement client relationships and focus on strategy rather than daily operations.

Analytic Solutions :

Fiction: Portfolio analytics platforms make your decisions for you.
Fact: The portfolio analytics platforms of today crunch through Terabytes of data from international data sources such as Reuters, Bloomberg, and Moneycontrol among others. They provide recommendations based on your portfolio data and risk tolerance, however, the final decision is left to the Wealth Manager or Investor.

About Valuefy:

Valuefy is a premier investment technology lab with cutting-edge solutions serving the leading financial institutions across the globe. Its Wealth Management Solutions has been enabling Wealth Managers globally by providing productiongrade investment technology for an uberized customer experience. Reach out to us!

Book A Demo

Help us to customise / Understand you better

    How do you describe your self?

    Whats top on your mind for which you are better solutions?