“How We’re Lowering The Barrier To Entry For Wealth Management”

4 min readMay 29, 2019


By Crypto Daily | October 22, 2018

Link to the original article: https://cryptodaily.co.uk/2018/10/how-were-lowering-the-barrier-to-entry-for-wealth-management/

When compared to most other industries, the financial services sector has a significant number of barriers to entry that we have still yet to overcome.

From complicated licensing laws to excessive capital requirements, to regulatory compliance, to complex security requirements, it’s understandable why the industry still feels inaccessible to the majority of the population.

However, this could all be about to change.

The Investment Management Industry Is Changing…For the Better

Anyone who knows anything about the investment management industry can see that it’s changing quite rapidly — and it’s hardly surprising why.

Earlier this year, Deloitte released an article outlining the changes that asset management companies will need to make if they want to stay afloat in today’s environment.

In this article, they stated that “there are signals that customer preferences may experience a quantum shift, as opposed to the incremental changes that the industry has seen over the past decade.”

In other words, they’ve confirmed things are about to change much faster than we’ve been used to — and we need to be ready to adapt.

How Technology is Disrupting the Traditional Wealth Management Industry

In recent years, we’ve witnessed the creation of an increasing number of solutions designed to disrupt the wealth management industry and open it up to a broader audience.

The users of these services are changing dramatically. The industry is opening up to a brand new wave of young investors, who are far more tech-savvy than traditional investors and are requiring a radically different set of tools.

While traditional firms fall further and further behind, tech startups are leaping forward to take their place and fill the gaps in the market.

By using artificial intelligence and blockchain technology to help users make the best investment decisions and stay on top of their portfolio, tech startups are not only simplifying the process of wealth management — they’re making it enjoyable.

Even more importantly, they’re making it more accessible. By utilizing software to provide online solutions, firms are able to charge users lower fees than traditional firms.

They’re also allowing users to make lower minimum investments, which lowers the barrier to entry and incentivizes those with limited funds to participate.

Artificial Intelligence and Blockchain — The Perfect Match?

The rise of artificial intelligence has enabled a significant rise in automated investing and portfolio management.

Even more recently, we’ve witnessed a rise in the role of blockchain in asset management — and for good reason. As well as offering vastly improved data security, the technology offers increased speed, increased operational efficiency, and more efficient settling of trades.

Companies like TrustVerse are combining blockchain with artificial intelligence deep neural to help people manage their crypto-assets and their entire online digital identity.
The firm is essentially a financial information service that uses AI technology to prioritize investments based on the users’ profile.

When an item in their profile undergoes market fluctuations, the user will be alerted in real-time to rebalance their portfolio — a feature not provided by other modern financial institutions.

The dApp will even suggest a re-constructed portfolio option that the user can choose to accept or decline.

Smart contracts also used to ensure that a users’ assets are handed down to the designated party correctly when required. This allows users to decide exactly how their assets should be distributed should they die and reduces the chance of unnecessary disputes and excessive legal costs that are often required to resolve the matter.

The firm even provides guidelines for digital asset management in order to minimize legal and tax costs and maximize the amount of money users can make

What Will the Future of Wealth Management Look Like?

Competition is increasing, and there is little doubt that traditional investment firms will face decreasing margins as more investors turn to low-cost solutions.

As the industry continues to move forward, it’s likely we’ll see a vast increase in the number of investment processes supported by computer models — particularly artificial intelligence and machine learning — from fresh new startups with fresh new ideas.

Meanwhile, for traditional firms, the phrase ‘adapt or die’ has never been so relevant. And if they do choose to adopt, they need to do so quickly.

Uploaded on: October 23rd, 2018 (tvspress)

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