3 Fintech Companies on the Rise
By Sergio Chalbaud
3. Wealth Management- Betterment
Technology is also having a huge impact on the wealth management industry. Because markets are so unpredictable, clients are looking for more control of and transparency around their wealth. This is why robo-advisors are replacing traditional wealth advisors with one company at the forefront. Betterment’s technology solutions are redefining wealth management in the U.S. by crafting personalized portfolios for clients in exchange for a small fee. The company has over 100,000 customers and $3 billion in assets under management. While there is limited evidence to prove robo-advisors like Betterment are actually taking a large volume of clients away from human advisors, the overall business model demonstrates how strategic portfolios can be customized for a low cost. As Millennials get older and have more money to save, robo-advisors will achieve a larger market share and squeeze margins for the industry. At the same time, they will save considerable money for consumers.