|Added Jul 9, 2017 Views 40 Rating|
Benefits of Financial Technology as Part of Wealth Management
While not many people know the details of wealth management, most are familiar with its main objective – acquisition, sustenance and protection of wealth. And because it is guided by a specialized body of knowledge and some skill sets, it is important that it is performed by financial experts. And to make financial professionals more efficient in managing their clients’ wealth, financial technology offers valuable help.
Financial technology is an industry that revolves around the use of advanced technology and innovation to make use of available resources so as to compete against traditional financial institutions and intermediaries in the delivery of financial services.
Technology has altered how we do almost everything, from shopping to making friends, and it’s also transforming the financial services industry. In the last few years, a set of ventures have turned up, using technology to make it more convenient for people to invest, make payments and secure get a loan.
For millennials, it’s especially appealing as they grew up with mobile devices and want to perform financial transactions the same way they would get a job or share pictures. Financial technology users acknowledge that and have made the most out of that.
But it’s not just their bright view on financial markets that makes this industry successful. It’s also a conflation of technology and big data, allowing a variety of companies to develop and analyze information in unique ways.
Financial technology includes the use of software in providing financial services.
Financial technology companies are mostly characterized as being startups set up to interrupt current financial models and the bigger financial corporations that are not as integrated with technology. Bigger corporations, however, are increasingly acknowledging the need for software solutions and are falling back on the technology to buildup and perfect their financial service offerings.
Financial technology global investments have exploded over the past few years. Financial technology has helped create multi-billion dollar industries, still ruled by startups selling technological solutions to financial companies.
Financial technology has leveled the financial playing field for ordinary people as well, giving them access to services that used to be reserved for the rich or individuals of a certain economic status. For instance, technology and data have made it a lot easier and more affordable to take investment advice to the masses, meaning something made for a certain asset level is now available to everyone.
Or picture lending. Previously, underwriters simply had a few data sets to depend on when evaluating risk, so plenty of people were declined or charged a bigger interest rate for a loan. Financial technology provides access to different information when underwriting consumers, reviewing things typical banks would never consider and providing access to personal and business capital to more people.
None of that is possible without the mighty computer systems and software, and of course, the financial experts and data scientists who breathe life and sense into them.