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What is WealthTech and Its Innovation in Investment Management

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According to GlobeNewswire, the wealthech, aka wealth management, technology market, will hit the $137.44 M mark by 2028, which shows how much these financial solutions are transforming the investment and asset management industry. In this article, we’ll give you the wealthtech market overview, as well as describe current and future trends.

Table of contents:

Wealth management technology market overview

Trends in wealthtech

Future technologies in wealthtech

Wealth Management Technology Market Overview

The wealthtech ecosystem democratizes certain activities that were previously exclusive to experts and promotes efficiency in financial processes. It has transformed the investment arena and disrupted ways of understanding modern finance. Take a look at the activities and services represented in the wealthtech ecosystem:

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Wealthtech market overview


Wealthtech marketplaces are centralized platforms, where financial advisors can select third-party investment models while retaining control of allocation, trade implementation, and rebalancing. Marketplace models in wealth management are emerging as a hybrid business model that offers a combination of digital and human engagement, helping advisors to focus more on client-building and retention strategies, while offering lower cost and retaining discretion. 

Trading Platforms

Trading platforms in wealth management are suitable for users of any expertise level. They allow users to trade in multiple financial asset types, offer advanced financial chart comparison tools, provide research-backed analysis on financial markets and investments from top analysts, and are available on multiple devices. 

Investment Tools

This category includes various types of software and services that provide comparison tools, research, and access to a network of advice. For example, such applications deliver financial market data updates, help customers find and connect with the service or product that suits their needs best, help with financial planning, as well as research and analyze investments.

Portfolio Management

Portfolio management solutions help investors and financial advisors unify and manage their investment portfolios in a single platform. The service offers innovative multi-asset class portfolio analysis for wealth managers and individuals, to manage the risk and performance parameters of their investments.

Compliance Management 

Compliance wealthtech goes hand in hand with regtech — regulatory processes management within the financial industry, with the help of technological solutions. The two techs work together to ensure that all financial activities abide by regulatory requirements.

Social Trading

Social trading is a special type of investing that allows you to observe the way your peers and trading experts behave and follow their trading strategies, using mirror trading or copy trading. It’s a popular way to access financial markets, as it requires very little knowledge of the financial markets and saves money on hiring traditional wealth managers, although clients still need to open a trading account.

Financial Advisors

These companies specialize in offering financial and investment advice over the internet, based on extensive data analytics that they get from Big Data applications and Artificial Intelligence-based decision-making. Financial advisors are a more traditional form of wealth management that is being gradually replaced by robo-advisors.

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Robo-advisors are automated services that use Machine Learning algorithms to offer financial advice or investment management online, with little to no human interaction. This service can offer customers ideal investment portfolios based on their risk preferences and the most profitable investment options in the market. Robo-advisors today replace or complement traditional financial advisors, as they can generate revenues through lower margins and higher volumes of transactions.


This is another version of robo-advisors, used for managing consumers’ retirement savings. They offer Individual Retirement Accounts (IRAs) that either defer tax to retirement or allow capital gains to be tax-free at retirement. Robo-retirement services differ from human ones in that these platforms manage assets, create retirement portfolios, provide strategies, and recommend plans generated by a computer system.

Quant advisors

Another extension of robo-advisors consists of quant advisors. These systems deal with quantitative investing — the use of quantitative strategies to create mathematical models that ingest quantitative data from market feeds and other sources. The data is analyzed with the help of a computational model designed to exploit inefficiencies. When the code spots a positive trend or locates an inefficiency, it triggers the appropriate buys and sells.

Algorithmic Trading

This form of trading uses complex formulas and mathematical models combined with human oversight to make decisions to buy or sell financial securities on an exchange. Algorithmic trading can be used in a wide variety of situations — for example, order execution, arbitrage, or  trend trading strategies.


Such platforms make it possible to save, deposit, and invest small amounts of money with no commission. It allows people to generate savings little by little, without having to shell out large amounts of money. Micro-investing platforms automate the process and portfolio management, based on your personal preferences. It’s common for micro-investing platforms to have a subscription-based or flat-fee payment scheme, which has provided an opportunity for more people to invest.

B2B Software Services

These are platforms that help advisors connect clients with unconventional investment types, including hedge funds, private equity, futures, and real estate. Also, B2B software services include the tools available via SDK, API, or web interface to help advisors compete with robo-advisors by allowing them to increase client communication, invest with less bias, scale operations, and find new clients.

Analytics and Big Data services

Such services include specialized analytics for B2B clients. Earlier, because of insufficient and unstructured data, financial services usually lacked insights and relied on manual analysis for suggesting investments. Today, with analytics and Big Data services, investment decisions have become much quicker and simpler.

Digital wallets

This software doesn’t only store all your payment details in one location. It is also designed to analyze and manage income sources and spending. Funds are stored in digital wallets throughout the funding period until the payout. This way, investors get one more level of safety.

Now that we have a big picture of the wealth management market, let’s take a look at the trends that are gaining popularity in 2022.

Anna Kundaleva

Technology Researcher

Professional researcher at HQSoftware. Interested in solutions for retail, entertainment, and software that makes people's lives better.

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Frequently Asked Questions

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Read also

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