The words “wealth” and “tech” have come together to make way for a new and revolutionary way of investing. Falling under the sub-category of Fintech, wealthtech focuses on utilising technology to help transform the wealth-management and investing process. From robo-advisors and micro-investing platforms to software providers, wealthtech covers a wide range of innovative investment solutions.
The sector is currently booming. Research from FinTech Global revealed that $12.2 billion was invested in WealthTech companies over the last five years. But who are some of the key players disrupting the investment management space? In this article, we’ve chosen five of the top wealthtech businesses we believe are helping to democratise finance for all.
8topuz provide artificial intelligence (AI) trading software and wealth management for investors, traders and institutions. Through utilising AI and algorithms, their leading software can automate trading activity on various currency pairs. With average returns of 20% a year and an easy to access trading system, this wealthtech solution is a great way for investors to grow their wealth regardless of their knowledge in trading.
Robinhood is an online broker headed up in San Francisco, USA. Their trading app allows US residents to invest and trade in a variety of financial instruments commission-free. Designed for beginner investors, this broker is helping bring investing to the masses. Currently, they have over 13 million accounts registered on their platform, with the app being most popular among millennial and Gen-Z traders.
Betterment is an American robo-advisor that specialises in helping retail investors invest and manage their money. Through leveraging technology and algorithms, they help make investing more accessible and less costly. Robo-advisors such as Betterment are democratising access to wealth management and provide an alternative for those who may not have been able to afford the expertise of a financial advisor.
Like Betterment, Nutmeg is also a robo-advisor. Founded in the UK in 2011, Nutmeg became one of the first British robo-advisors to hit the market. With a range of globally diversified portfolios of exchange traded funds (ETFs) that users can invest in, this easy to use and simple robo-advisor is a good choice for investors seeking a steady and passive way to grow their money.
Tickr is an impact investment app that makes it easy for first-time investors to invest in companies who are helping to solve social and environmental problems. Their app is not only great for those investors who not only want to build and grow their money, but who also want to play their part in helping tackle some of earth’s toughest challenges. This simple and interactive app has become a big hit among millennials in the UK.
The Disruption Will Continue
No longer the new kid on the block, these wealthtech platforms look set to disrupt the investment management space significantly. Currently, they are most popular amongst millennials, but as time goes on, we can expect that many more investors will switch to these easy to use solutions. It’s exciting times ahead for the wealthtech sector!