The days when you used to sit down with a financial advisor, and flip through stacks of paper, in order to build wealth are gone now. The investors of today, especially millennials and Gen Zs, are using wealth management tech. With the help of their photos and other devices, they can do things that would be unimaginable a few decades ago. Technology has become an important tool for fintech wealth management companies. This article is going to go into how are young people using technology to build their wealth, and what does this mean for the future of the finance world.

The Digital Generation: Wealth Management Tech

First of all, what is wealth management tech? Well, it’s all of the platforms and digital tools that you can use when it comes to wealth management. There are a few tools that are commonly used and known. Robo-advisors are probably one of the most popular tools that everyone in the industry is using. There are a few robo-advisors out there, and they are focused on slightly different things. As an example, the Betterment is an financial advisor that provides digital investment, and cash management services. While the Ellevest is a financial literacy program specifically designed for women. So, depending on what you need, there are a few options out there. At the end of the day, the main goal of all of them is the same; but there are nuances. Advisor tech is another tool that many financial advisors are using; because it helps with better managing portfolios and ensure compliance. It’s used as more of a help than anything else. Then, there are personal finances and budgeting apps. These have a pretty self-explanatory name! They are used to track and manage personal finances. There are a lot of other similar tools; there is basically a tool for everything that you need to do. This really helps with compliance, with organization, and with keeping track of everything. The human mind is flawed, but with the help of such tools, greatness is on its way! Now, both millennials and gen Zs have grown up with phones. For those who don’t know, millennials are the people born between 1981 and 1996; and gen Zs are the ones born after 1997, and before 2010. There is a certain speed in these two generations’ lives than never existed before. Therefore, they do expect the same kind of speed from fintech wealth management companies. They like having transparency, like clear fees and performance metrics. They like being able to do their own research, and always having access to their portfolios. And the real-time updates are one of the things that everyone just loves!

Fintech Wealth Management Companies

While DIYs are great, we must also discuss about fintech wealth management companies. Why are they so important, and why are people still using them when it’s so easy to do it yourself? Well, the combination of human advice and technological tools is unmatched! Fintech wealth management companies are not just offering you some tools, they are focusing on long-term financial planning. There is always someone you can talk to, if you are having any questions. There is someone that can actually understand your financial goals, and use technology to help you achieve it. Plus, the risk of the whole process is lowering, because you are not on your own, you have professional support. Thanks to the fact that they are offering tailored advice, very modern and user-friendly interfaces, and transparent pricing, fintech wealth management companies are gaining clients! This type of companies are the real-life proof that technology cannot, yet, totally replace humans. No matter how much technology evolves, humans still understand humans better. Communicating will almost always be more efficient; your questions will be answered in a way in which you can understand, and the plan will be tailored to perfection.

Social Media is a Tech Tool

While this might sound a little silly, it’s 100% true. Social media apps, especially TikTok, Reddit, and YouTube, are some of the primary research tools used by these two generations, especially gen Z. On these platforms, you can find communities of people that are talking about investing and wealth management. As an example, the side of TikTok that discusses topics like these is called FinTok! You can find basic information, real-life experiences, and you can ask other people for advice. It’s really nice, because no one really knows you. You can ask about what you don’t know without shame and feeling uneducated. It’s true that it would be best to research outside of social media too. There are many articles, and even books on these topics. But, for a young person that never invested before, and doesn’t know exactly what to do, a book might seem like a lot. There are not a lot of beginners books that are actually talking to real beginner. It’s easier to find, on the internet, another person that’s in a very similar situation to yours.

What’s Next?

The truth is that there are many other tools that are to come. The focus will probably be on even more customization, and maybe even easier access. There are a lot of things that are still on the complicated side; which is why a lot of people are staying far away from investing. Information will probably be even more accessible compared to today; and it will just be easier to invest overall. Technologies like AI will become even better, and investing platforms will become more secure. There will be a focus on educated young investors, and educating people that could want to potentially become investors. We cannot really tell how things are going to evolve, but it’s safe to assume that things are only going to go upwards from here! We can only expect even better wealth management tech.

Conclusion

Wealth management tech, like robo-advisors or advisor tech, is only here to help young investors! If you want to get into this world, make sure to do your research, but not only on social media. Use all of the tools that you have available, to ensure that you will make the correct decisions when it comes to investing and managing.