How Fintech Must Evolve to Meet the Needs of Tech's New Wealth

A massive wealth transfer is already underway. The Financial Times reported that in the UK, over £100bn is inherited and gifted every year, while in the EU, by 2030, €3.3 trillion of wealth will have changed hands. There is, also, a surge of new wealth — with the next generation having its fair share of successful tech founders, venture capitalists, and digital influencers. 

Given this backdrop, it’s no surprise there's intense competition across the fintech sector to win over Gen Z. And it's increasingly challenging to gain their loyalty.

This new demographic of wealth has widely divergent characteristics from their predecessors — they are tech-savvy, digitally fluent, and globally connected. They have entirely different expectations when it comes to financial solutions and wealth management services, demanding speed, personalisation, and borderless solutions. 

This shift marks a pivotal moment for the fintech industry, which must evolve to meet the needs of these new clients. Whether they adapt or not will likely have a say in their survival or eventual demise. Here's why. 

Evolving Needs of Modern Wealth Holders

Gen Z embraces a borderless lifestyle. An MBO Partners report found that Gen Z is at the forefront of the explosion of digital nomadism — people who work online and are location-independent. Modern wealth holders also value the ability to make quick decisions and access funds in real-time. 

In practice, this translates to products like multi-currency accounts, international investments, and platforms that allow them to make seamless transactions globally. In fact, many of them may be managing their expenses in multiple countries. Hence, to cater to them, services that eliminate bureaucratic barriers are needed. 

This can be achieved by integrating key financial functions within a single platform, from analytics and tax planning to philanthropy and value tools that empower young affluent individuals to make informed decisions, with engaging features like educational interactive content.

Additionally, the new generation prioritises social responsibility and environmental sustainability, expecting these values to be reflected in their financial decisions. An EY study revealed that 51% of Gen Z participants considered ESG factors important compared to 36% of people from other generations. 

Common Pain Points in the Current Wealth Management Landscape

The current wealth management landscape is still largely dominated by traditional private banks and a few fintech players. However, both still have limitations for the new rich. 

Despite the increasing demand for digital solutions, many Millennial and Gen Z entrepreneurs still struggle with the limitations of traditional banking. Private banks offer personalised services and excel at wealth preservation, but due to legacy systems and compliance-heavy processes fail to deliver the agility, speed, and global accessibility that younger, tech-savvy entrepreneurs expect.

Restricted transaction limits and delayed processing times are among their main pain points  — it is common for traditional banks to require several days or even weeks to complete cross-border transactions, particularly when they involve larger amounts. 

The lack of transparency of many banks exacerbates the issue, especially when there are hidden fees — even worse, these fees have become a main revenue driver for many banks. 

On the other hand, many fintech startups are mainly focused on mass-market solutions to cater to the needs of affluent Millennials and Gen Z clients. The existing platforms offer fast, digital banking services, but they often fall short in addressing the level of personalisation and sophistication this demographic expects. For example, high-value transactions might still undergo lengthy approvals.

This leaves a significant gap in the market for tailored fintech solutions that meet the unique needs of younger wealth holders. 

Key Fintech Solutions for New Wealth Needs

From my perspective, there is an enormous opportunity for companies to emerge and bridge the existing gap. These solutions should be customizable, providing users with the ability to tailor their financial strategies according to their needs and preferences, which are constantly evolving. For example, real-time financial dashboards and customised spending controls are a must — this upcoming generation values flexibility over rigid approaches.

Also, solutions must enable seamless high-limit transactions, multi-currency accounts and cross-border payments. The integration of financial data from multiple sources in real-time, supported by Open Banking frameworks under PSD2 directives, can play a key role in achieving this.

Then, fintechs need to be smart about integrating technologies like AI and blockchain, as they can streamline many aspects of wealth management, including fraud detection, compliance, and customer service. By automating these processes, fintechs can reduce their operational burden while maintaining high levels of personalization. 

Platforms seeking to capitalise on this should offer features like tiered access controls and shared dashboards for family members that can align with the lifestyle needs of affluent families. In this regard, offering an intuitive user experience is paramount, as this allows clients to manage their wealth with minimal hassle.

Integrating ESG metrics into wealth management platforms can also appeal to the socially conscious mindset of Millennials and Gen Z.

Finally, partnerships are involved. API-based solutions can help fintechs integrate seamlessly with family offices and traditional wealth management structures. Such collaborations can help fintech serve legacy wealth holders while offering more innovative, digital-first solutions.

Conclusion

New wealth holders have radically different needs and expectations from their predecessors. Their high standards are setting a new bar for wealth managers, legacy financial institutions, and fintech companies alike. To meet their needs, fintech must blend the right digital tools with excellent, personalised service. Companies that can do this effectively will lead the ongoing race for new wealth.