Embedded wealth management enables customers to increase their wealth and provide fintech with a new channel to communicate and engage with their customers.

When Uber announced it was introducing a bank back in 2019, the technology and finance industry became very excited. Uber Money provided users access to their earnings in real-time and access to their card. It represented a great opportunity for the strictly regulated finance world. Uber was a blueprint and many other technology companies are exploring the move into financial services. Embedded finance has become a very popular area for both fintech and new investors.

The concept is that technology companies can provide financial services with their standard offering, whether this is payments, lending or insurance. Another embedded financial service is based around wealth management. Challenger banks are showing significant interest in wealth management, providing users with options to invest their money more freely. Challenger banks are taking the lead in providing customers with a simple service and favourable options for saving.

There is a growing need for businesses to engage with their customers in a way that provides value beyond the conventional services, while at the same time offering benefits for the challenger banks. In the previous year, businesses looking to integrate investment features were faced with several barriers to overcome. These challenges reduced the options of wealth management to larger financial institutions. Today’s embedded solutions have made wealth management more widely available.

Wealth management has benefits for both fintech and their customers. Users can increase their wealth through simple investments and this enables fintech with new ways to engage and communicate with their customers. Embedded investments provide a stable way of growing income while providing a genuine reason to communicate with clients.

The outlook for the industry is looking positive. Businesses are experiencing stronger growth and interest in all traditional fintech areas and analysts predict that more customers will actively look for user-friendly services to make their investments.