Choosing a WealthTech ecosystem: Where decisions are not simple

Abstract

With the ongoing democratisation of investment and wealth services, there is a proliferation of wealth management technology (WealthTech) platforms that are providing professionals like financial advisers with advanced tooling, regular individuals like self-directed retail investors with approachable systems or both. It is difficult enough to try and pick the right platform or platforms to use regardless of what kind of investor you are, let alone deciding on what combination of them works best for you or your firm. The interoperability and strategic relationships of the WealthTech platforms are equally important when deciding whom to commit to — the ecosystem. As such, a WealthTech ecosystem is the complex network that connects a broad range of applications, services and partners — from enabling financial advisers to empowering self-directed investors and streamlining front-to-back operations to network connecting marketplaces. Both professionals and individual investors leverage a litany of platforms and service providers to manage their clients’ or their own wealth. This paper — leveraging content from a recent report from CB Insights (https://www.cbinsights.com/research/wealth-tech-financialservices- incumbents-partnerships/) — provides an overview of why it is important to look beyond the individual capabilities provided by a WealthTech platform and at the broader ecosystem that you will be participating in. This ultimately begins with an introspection of your own platform, capabilities and tools to determine how best to proceed.