What wealth management should learn from fintech

Covid-19 created a massive fintech boom due to a surge in investments. In 2019, 8% of funding recorded by GlobalData was worth more than US $50m. In 2021, that figure jumped to 22.8%. Based on KPMG's Pulse of Fintech, global spending on financial technologies reached US $210 billion in 2022 as interest in crypto and blockchain continues to surge.

The fintech industry provides digital solutions to create new opportunities for the future of wealth management by meeting clients at their point of need with a digital-first focus. Financial technologies are reshaping the entire market, and wealthtech is the natural next step.

Thanks to investments in innovative financial technologies such as artificial intelligence (AI), machine learning (ML), and data analytics, the wealthtech industry is simplifying money management by providing consumers with easy-to-use digital platforms to manage their finances better. Despite the advances in financial technologies, the Global Financial Literacy Excellence Center research states that only 33% of adults from economically developed countries are financially literate.

Wealth managers need a clear communication strategy to establish their brand voice and make their services relatable to different demographic groups, including the average salary earner. The term "wealth" may put off potential clients who don't identify with the word.

A strong content strategy can be used as a powerful marketing tool to generate quality leads, as most consumers want to learn about money but in an easier way. Wealth managers need to build trust through valuable content, especially on subjects that directly impact their customers' lives.

When creating content, wealth managers need to consider their audience's experiences. Some questions include: What financial literacy issues may prevent a customer from moving through your sales funnel? How can you best adjust your content marketing strategy to assist them with these pain points?

You can create educational finance content to guide your customers on considerations they may not be aware of, such as "Benefits of saving for your child's education", for example. The content should also gently persuade your customers to take the next step and explain why your brand is the best to help them.

Wealth management companies that successfully leverage AI solutions to perform behind-the-scenes operations such as data entry, and active investment management, can focus on their client's needs with personal interactions and distinguish themselves in the sector.

Creating your own content strategy will bring great value to building your brand. For more information, feel free to reach out to me at zakbassian@gmail.com.