Financial management gets more complex the more money you make. This is especially true if you're a fervent investor or run your own business. Many startups, therefore, are diving deep into wealthtech - combining evolving technology with wealth management. Here's our overview of the niche and the ventures making a difference.
What is Wealthtech?
Wealth management is the principle of 'looking after money'. It's planning and budgeting for what will happen to your income and savings over years to come. You don't have to identify as wealthy to take notice of this type of financial management, either.
Wealthtech occupies a crossover space between everyday technology and financial forecasting. Fintech, as a wider sphere, concerns money management on the go. However, wealthtech goes a little further by helping people plan and forecast their money using various technological innovations.
Wealthtech can help with stock research, investment confidence, retirement planning, and more. Given that increasing numbers of people rely on their smartphones for answers to various questions, wealthtech was always inevitable.
Therefore, it's worth looking into startups growing in the niche and changing finance for the better.
Wealthtech Startups Making Waves
Over the past few years, a big boom in investment apps has driven wealthtech innovators to the fore. This also times in well with increasing demand for cryptocurrencies such as Bitcoin and Ethereum. Therefore, it stands to reason that emerging wealthtech firms make it easier for everyday people to grow their money.
You no longer have to head to the stock exchange to make big money from big stocks and shares. It can be as simple as consulting apps or letting a 'robot advisor' do the hard work for you. This means you are unlikely to make stock decisions based on emotion or 'chasing the profit'.
Of course, there's more to wealthtech than simply having a portfolio manager in your pocket. This is where leading ventures begin to shine.
Root, for example, is a Columbus-based firm that's niched down in insurance coverage. Wealth management is not always about making money outright, but also about saving it!
Root's focus lies in analyzing user driving habits to help drive down motor insurance costs. Instead of poring through carrier after carrier, users can load their Root app to analyze needs. The firm has grown massively since 2015, with $527 million+ at Series E.
Stash, however, takes us back to stocks. Based out of NYC, the firm offers a subscription model to help users understand investment potential. Tailored to each user, it's more than just 'learning the basics'. They gained $427 million+ at Series G.
Start Wondering About Wealth
Significant changes in global finance and convenience over the years mean app banking and more will only keep growing.
Ergo, now is a great time to look into wealthtech startups and the fintech spheres. Fundz can help. Sign up and start crunching the numbers while searching for the next big investment.
Topic: Wealthtech Startups