The New Age Finance- Wealth Tech

The term ‘WealthTech’ was coined in the early 21st century with the convergence of Wealth with Technology. The concept of wealth management evolved to be known as ‘WealthTech’. Elements like artificial intelligence, big data, SaaS allowed a transformation in the ecosystem of hedging.

WealthTech has allowed individuals to ‘personalize’ their finance. By automating and increasing the efficiency, individuals are offered a seamless customer experience while picking hedge plans best suited to them. As per data, India had approximately 4 million WealthTech investors in FY 2020 and is expected to grow by 3x to reach approximately 12 million by FY 2025.

The Ecosystem- WealthTech

Earlier, wealth management was offered as a ‘service’ by banks or financial consultants but with evolution and introduction of WealthTech, companies are focusing on B2B investments and scaling businesses with personalized hedge plans. For instance, Moneyfront offers fully automated investment advice and recommendations based on its signature scientific algorithms allowing individuals and businesses to customize their investments to maximize profits. The idea of such firms is to empower individuals by allowing them to be self-reliant.

Differentiated Services in WealthTech

  1. Portfolio Management Tools- Individuals and businesses alike can have their investment preferences and plans listed and showcased on a single platform enabling them to have a bird’s eye view of their portfolio.
  2. Robo-Advisors- These are machine learning based tools that automatically analyse customer preference and invest in instruments best suited to them. The goal of the software is to make smart investments with limited intervention.
  3. Automated Retirement Plans- Technology has furthered robo-advisors wherein they can devise plans through algorithms that manage an individual’s retirement plan with limited intervention. These algorithms calculate and devise customized plans.
  4. Quantitative Investment Strategies- Quants strategy compose complex mathematical models to detect investment opportunities. These quant models make the buy or sell decisions based on discipline without human intervention thereby eliminating any emotional response at the time of trading.
  5. Scientific Algorithm Tools- These algorithms enhance trading software by automating real-time trading wherein users can configure the software services according to their preference and requirements.
  6. Robo-Financial Advisors- Based on extensive data analytics, robo-financial advisors provide close-to-accurate financial advices to individuals which otherwise was an expensive concept. Company advice users of the best option available to them basis their preferences and budgets.
  7. Systematic Investment Plans- Companies are offering a platform that allows users to make a one-time decision that result in repeated investment occurrences. Individuals can choose their hedge plan, quantity and amount and automate the entire process.
  8. Big Data Analytics- B2B clients often indulge in sizeable investments and hence, data analytics plays a crucial role for such clients. Earlier, owing to insufficient and unstructured data, financial companies relied on manual analysis. However, with machine learning and data analysis, companies are able to offer better insights with simpler customer journey.
  9. Cloud Technology- With cloud technology, financial companies are allowing users to invest and manage their investments on their fingertips. This will further the adoption of WealthTech and users are offered ease along with financial assistance.


Since the pandemic, India has seen an increase in wealth management as customer sentiments have shifted to a future-centric approach. With introduction of startups in this segment, WealthTech has an opportunity to grow immensely.

Leave a comment

Your email address will not be published. Required fields are marked *