We live in strange times when it comes to personal finance, as while it may be harder than ever to accumulate wealth and achieve financial security (the current UK pension liability across defined-benefit schemes is estimated at £135.9 billion, for example), managing acquired wealth is now easier than ever before.
This is thanks to a combination of technological advancement and greater access to information, which have helped individuals to become more aware of their finances and take steps to safeguarding their futures.
We’ll explore modern-day wealth management in greater detail below, while asking how the fintech revolution is making it increasingly simple to optimise earnings in the first place?
The Rise of Accessible Wealth Management
In terms of wealth management alone, it’s important to look at the sheer number of managed investment accounts and portfolios now available online.
This is a manifestation of how fintech innovations have broken down the classic barriers to entry that once surrounded various asset classes and the world’s financial markets, creating a number of entry-level investment vehicles that are managed by seasoned professionals.
On a similar note, this same technology has seen a huge transition within the financial markets, with online brokerages having made various sectors and asset classes available through a single interface.
To understand this further, you only need to look at advanced trading apps such as the MetaTrader 4 (MT4), which enables users to trade a range of different assets and create customised indicators through a single, accessible interface.
So, if you have access to disposable income and want to invest this as a way of managing and optimising your wealth, you can now target diverse assets such as currency, commodities and equities with ease.
These platforms have also reduced the cost of accessing such assets and markets, with most forex brokers charging zero or minimal commission fees on a growing range of investments.
Finance Fundamentals – Accumulating Wealth in the Digital Age
Even on a fundamental level, we’ve seen a significant rise in the prevalence of online and mobile banking has revolutionised how people can access and manage their capital holdings in real-time.
So, if you have access to a mobile banking app and keep your capital in an investment savings account or similar vehicle, you can now control your finances far easier and make real-time decisions that can benefit your current and future wealth.
With an impressive 40% of Brits now using a mobile banking app on a daily basis, this type of innovation has devolved wealth management to the lowest level and made this a viable option for people of all shapes and sizes.
Most importantly, this has made it easier for relatively low-income individuals to commit a small percentage of their disposable income to savings on a regular basis. As a result, more and more households are finding it incrementally easier to build and manage their wealth, without compromising on their daily, weekly or monthly budgets.