What Emerging FinTech Means for Portfolio Managers | Investera | Investment Portfolio Management Platform

What Emerging FinTech Means for Portfolio Managers

25February, 2020

Financial technology (FinTech) solutions are reforming the ins and outs of the financial industry. By making services faster and more accurate, FinTech solutions are empowering advisors and portfolio managers to service higher net worth accounts, as half of investors from ages 53 to 64, and one-third of retirees, are switching to digital resources to manage their finances globally.

According to Investopedia, robo-advisors have assisted in the management of assets worth $60 billion in 2015, and their market share is globally projected to reach US$2 trillion by 2020 and $7 trillion by 2025. Currently, some of the main uses for robo-advisors include tax-loss harvesting, investment selection, and retirement planning. 

FinTech Uses for Wealth Managers

Aside from robo-advisors and empowering their clients to access their information digitally, emerging FinTech solutions are empowering wealth and investment managers in several ways.


  • Easing the entire investment management process. Often, portfolio managers are bombarded with many numbers and insights at once, which can be overwhelming. Investors expect them to remain updated on the latest market trends at all times, and while this is not possible, FinTech solutions enable portfolio managers to view all of the latest insights on the screen through clear dashboards. In other words, FinTech simplifies complex algorithms and information into simple user-friendly graphs and reports. 


  • Anticipating and predicting market trends, while quantifying risk. Machine learning can be leveraged by platforms to predict future trends on the large sets of data it learned from previously. Thus, FinTech solutions powered by AI have the potential to predict investment trends ahead of time, which enables wealth managers to identify previous patterns and predict potential risks based on large amounts of data.


  • Personalizing finance. Instead of using a platform developed for thousands of people, emerging FinTech solutions are leveraging AI to offer the element of personalization. These investment systems can offer a more tailored solution for clients, catering to their diverse investments, securities, and needs.  


  • Automating wealth management. Traditionally, an investor would call a portfolio manager to know the status of their investments. FinTech wealth management solutions automate administrative tasks such as eliminating the need for manually entering data. Automation also assists in complying with regulations in a more seamless manner.


  • Increasing transparency. Some investors prefer to keep their finances private, and hiring portfolio managers may pose a transparency issue. Hence, an investment management platform such as Investera can help bridge this gap by offering an interface that connects portfolio managers with investors. These FinTech interfaces and systems increase transparency and assist investors in feeling secure



  • Offering a competitive edge, 24/7. Wealth managers can have a full-scale view of emerging market trends and the performance of the market at all times, which gives them a competitive edge over competitors who prefer manual means over automation. Hence, investors can seize opportunities at optimal times, while saving hours that would have otherwise been spent on research.


Ultimately, FinTech is enhancing wealth management services, and this realization is quickly gaining global traction. 

By leveraging these solutions, portfolio managers can service more high-net-worth individuals without feeling too overwhelmed. For investors, private equity firms, VCs, family offices, and investment banks, it means they can always be ahead of the curve by taking optimal and timely investment decisions.

Discover more about financial technology on our blog. If you are looking for a leading investment management platform, request a free demo with Investera: https://investera.com/