Advances in robo-advice, AI, and hyper-personalisation have all presented the wealth management industry with an opportunity to revolutionise the delivery of investment and wealth management solutions. But how do we make the most of this?
At Money 20/20 Europe (the largest annual fintech conference in Europe for corporates, fintechs and wealth management firms alike), Mary Agbesanwa, White Label Business Development Director at Embark Group, joined a panel of experts, to discuss ‘a new era for Wealthtech’ and answer the big questions around the future of technology in the wealth management sector.
There is still plenty to play for in Wealthtech. Investors today crave more control, transparency and ease accessing their investments. A leading D2C Wealthtech solution must respond to this by offering a slick user interface, data-led insights and seamless customer journeys.
Mass market still continues to present significant untapped potential. We all recognise wider access to wealth management tools is essential for providing financial resilience to individuals and communities. It enables intergenerational support and supports a better quality of life.
According to App Radar, just 12% of UK adults are using an investment app and the latest research from the Lang Cat’s Advice Gap report 2024 states only 9% of consumers have paid for financial advice in the last two years down from 11% in 2023. Alongside this, 55% of advisers they spoke to have already stopped serving (lower value) clients as a result of Consumer Duty. It is undisputed that there is a large market looking for accessible, affordable and personalised financial services.
At Embark, we are working to support the industry imperative to address this challenge. We’ve already seen a lot of success through Lloyds Banking Group’s recent ready-made investments and pensions propositions. This means through the Lloyds Banking App, Embark’s API technology is used to deliver investment ISAs and pensions directly to over 12 million customers who can now view their investment pots alongside their current account.
This is a huge step forward for helping customers make better financial decisions and meeting them at their point of need.
We’ve seen first-hand how banks benefit from having access to extensive client data as well as an established and trusted place in the market, meaning they can deliver wealth management with a strong, client-centric approach.
Additionally, banks are experts well placed to educate customers and offer support. Applied effectively, we believe we can expect to see banks come up with leading D2C Wealthtech journeys that will best support clients to understand and utilise wealth solutions as well as attract and retain new investors.
There could be! There is growing consumer demand for integrated financial services that provide a seamless user experience. A super app that consolidates investing, saving, mortgages, and insurance could simplify personal finances for consumers. At Embark we’ve already supported some of our partner firms to develop comprehensive solutions such as these.
While reducing fees is important, it shouldn’t lead to a race to the bottom. At Embark, we focus on value creation through superior user experiences, personalised
services, and the reduction of regulatory burden for firms we work with. Our partnerships with leading financial institutions allow us to offer competitive pricing without compromising on quality.
If you’re interested in learning more about the evolving D2C Wealthtech landscape or the industry in general, please do get in touch.