WealthTech

Within the name itself, Wealth Technology, the industry is focused around the management of Wealth using technology and fintech solutions. This may include insurance and regulatory technology and investment/asset management technology.

Common services provided in the industry include micro-investing, Robo-Retirement and financial advisors, digital brokers and business-to-business (B2B) products. This fits into the overall fintech industry using popular artificial intelligence and big data to drive its processes and appeal to the market.

WealthTech has shifted over the past few years based on market demands and the nature of financial markets. Not long after the 2008 GFC, the wealth tech industry started to expand, with the emergence of trading apps and robo advisors. Since then, the market has shifted to a trend of more open banking and increased financial services that are more personalised and trust worthy.

The industry's development is in parallel with the technology boom that saw an increase in startups and firms offering more choice to investors. This further development can also be witnessed in the last 5 years that captures the wealthtech industries expansion, with COVID-19 only accelerating it.

Companies such as Robinhood and GBST are major players currently using quantitative investing techniques to provide a range of services. These include personalised trading recommendations and online support services.

With blockchain, a popular and increasingly adopted technology, the WealthTech industry is predicted to use such technology with startups already offering such services. This integration can also be seen with cloud computing, with this technology a popular feature for micro investmenting.

Since WealthTech is such a broad sector that combines those who are literate in financial investing and software developers that facilitate these programs, many opportunities are available.

Specific roles include Tech Engineer, Software developer, Cyber Security agent, Trading Specialist.

The industry also hosts a range of tech and financial related legal roles as the nature of such programs and transactions need to adhere to changing regulations.

There are also a range of opportunities that are available within start-ups, with Australian firms such as Superhero, Coinspot and Swyftx that are looking for these roles. Opportunities are also available within larger firms including Commonwealth Bank, KPMG and Google that are always actively looking to innovate into new markets.

In the year following the expansion of the WealthTech industry, it has significantly changes the way Millennials invest and spend.

With these technologies and services readily available at our fingertips, it has lead to an increase in risk taking overall.

While it is debated whether this is educated or uneducated, the industries growth has enabled ‘armchair investing’ with little to no consultation and the ability to spend most of their funds.

However, WealthTech applications and services are creating features to make the user more price sensitive and aware by warning users before purchases and allowing them to access a wealth (pardon the pun) of knowledge before they commit to any purchase.

Some have also taken the extra step by ensuring users have an emergency fund to avoid the impact of any heavy loss.

Overall, the WealthTech industry has allowed for greater choice, convenience and for more people within society to access a part of wealth investment of the once privileged and the industry is only scheduled to further increase in the future.