An article published last week highlighted how investors and large corporates benefit from fintech companies.  Flexibility of services is a key influencer and deal maker for these partnerships or projects.  Fintech has brought accessibility, convenience and more transparency to wealth management.

Transition & Flexibility are key points:

Wealth management planning is usually divided into two parts, investment planning and financial planning. While the former is limited to assets earmarked for investments, the latter takes a more holistic view. More and more fintechs are today moving towards the holistic approach through several tools. For instance, many wealth management fintechs start with charting the user’s goals that can range from buying a car and children’s education to early retirement. Similarly, there are other wealth management tools that go beyond investments.

This flexibility of scope is now also slowly extending to the basket of products being offered by fintechs. Until recently most platforms had focused solely on mutual funds. Now we’re seeing a set of fintech companies who are moving towards offerings of a fixed income through PSU, corporate and perpetual bonds

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Fintechs offer convenience to investors due to flexibility of services.  This has proven to be a mayor consideration in partnerships between fintechs and large corporations.  Adjacent to convenience, services are offered across multiple platforms as part of the digitisation transition. The beauty of digitisation is that it offers automation, which means higher efficiency and quicker results.  With advice being digital it makes it easy to store, record and share.

A additional benefit is that it enables the tracking of goals to investors.  As a result, investors can at any given point quickly and easily track their portfolio and history.   Performance can be checked against their goals to see if they are falling short.  It helps a great deal in monitoring and rebalancing the portfolio.  This create greater transparency and understanding of how your portfolio evolves over a period of time.