A Post Pandemic Guide to Wealth Management With Tech Stack

After the 2020 financial crisis, individuals are working towards attaining financial freedom.

It was an awful year for many of us with a lot more uncertainty. The stock market crashed, companies were shut down, the economy crashed, which adversely affected the wealth management industry.

Well, I can’t say more than this.

But there are pros as well like a substantial impact on human thinking, about their way to work and earn.

During the pandemic, wealth managers faced intense pressure but by the right mindset and adoption of digitalization, they can reach different heights.

Here we will be discussing:

  • What is a Tech Stack
  • Unique Challenges in Wealth Management
  • Rise of Digitalization
  • Components of Tech Stack in Wealth Management

Now let’s start.

What Is A Tech Stack?

There is no official definition related to it but it is simply a group of different technologies (like front-end, back-end, APIs, and database) that work together to create something out of it.

Creating a website is an example of the tech stack since it required front-end, back-end with the integration of APIs to work together.

The best-known examples are LAMP, MERN, MEAN, MEVN, and many more.

Yes, we can use tech stack in every business but today we will speak only on wealth management using tech stack.

Unique Challenges in Wealth Management

Since we all know Covid-19 has altered our everyday work. The same goes for wealth managers.

Global crisis, pandemics, and constant lockdown have changed customer behavior. Individuals realized the benefit of investing specifically during this type of critical situation. At the same time, the wealth manager faced a lot of suffering.

Some of them are:

  1. Change in Clients Behavior
  2. High Competition
  3. Complexity in adopting new technologies.

Due to which wealth managers have to change their working process, ideology, etc to meet the needs of their customers.

Even to get an extra edge, wealth management firms need to improve their technology.

Rise of Digitalization

Digitalization is beneficial for every business as well as the customer.

For example, an individual who has a shoe store and wants to sell it globally or across the country. Though the individual can’t able to afford to rent a place, he/she can able to open an online store at a minimal cost.

The advantages are way more like 24/7 customer services through automation, doorstep delivery, rapid growth, and many more.

Such types of businesses can lead to more profit and even attract investors from wide categories. This type of business also leads to customers satisfaction, profit for businesses and investors.

According to a survey, In 2020, over two billion people purchased goods or services online, and during the same year, e-retail sales surpassed 4.2 trillion U.S. dollars worldwide.

Components of Tech Stack in Wealth Management

The changing customer behavior, market dynamics, and the pandemic made a rapid digital transformation in the wealth management industry. So there is a need to use advanced technologies to sustain in the competitive world.

Let’s start.

Artificial Intelligence: It is a broad field that has applications in almost every field. Wealth managers can use these technologies to analyze the market, its growth. AI can be used to invest smarter by analyzing the market, and even gathering customers data. Most of the popular investment firms use this type of technology to compete in this industry.

It helps the wealth manager about the client’s attitude toward risk by analyzing previous records. Before AI, investors have to spend several days manually researching hundred of sources but thanks to AI, it became faster.

Data Science: We all know that data is everywhere and dealing with it can provide much more growth, the same applies to wealth management. With the help of data science, a wealth manager can play with the past data and can evaluate the market. It is an easy process of gaining knowledge about consumer behavior, etc, which can lead to great success. Wealth managers can analyze the data and predict customer behavior, future needs, to attain success.

Data Scientist implements new kinds of information that is crucial in banks or financial institutions. Even Data Analytics implements a technique known as Predictive analytics to predict, what will happen in the future?

Cybersecurity: Online industry is booming but security is a major concern. According to the 2020 Banking and Payments Survey, One in five investors globally has been a victim of financial fraud over the past three years. We have heard a lot of cyber breaches in this recent years and they drastically affect a company. Implementing the use of cybersecurity in wealth management can lead to avoiding data breaches, client information, etc.

Cloud Computing: According to several reports, most wealth managers are not concerned about data breaches. Data is immensely crucial in the wealth management industry and data loss can lead to several problems. So there is a need to shift in cloud computing.

Cloud computing has a lot of benefits such as saving the cost of servers using remote resources, ease of retrieving data with security, etc. It ensures that the wealth management sector strengthened its security systems.

Integrating API: The concept of API is in no way new but utilizing it can be beneficial in the wealth management industry. In simple terms, API is a software intermediary that allows retrieving some crucial information that is for sure needed in the wealth management industry. It can be used to access and exchange large amounts of data without any of the complexity.

It can be used to enable banks or investment sectors to integrate innovative technologies. With the help of API, we can access a whole range of wealth management tools or data in a proper way. Even banks can use API to build better user experiences for customers like

So there is a much more need to adapt the upcoming technologies to grow in a specific area.


Well, Technology can help us to get more clients but it also increases the complexity to find out the best tech stacks, get out of the tech stack trap, and improve customer experiences by improving efficiency.

According to a survey, In 2015, about one-third of respondents reported that customer experience was the primary consideration when investing in new technology.

  1. Use of Futuristic Technology: Using the best technology can improve customer experience and even the growth of wealth managers. We have talked a lot previously about it.
  2. Women as a New Face: The Wealth Management industry is solely dominated by males over the decades. But according to mckinsey.com, By 2030, American women are expected to control much of the $30 trillion in financial assets that baby boomers will possess — a potential wealth transfer of such magnitude that it approaches the annual GDP of the United States.

So there is a more need to add women in the field of wealth management.

Let’s Wrap Up

As our society is becoming more digitally active, thanks to the pandemic. The traditional firms and the newer ones have to use futuristic technology to sustain themselves in the market.

In every business, success can be achieved by gaining customer trust and providing value to them.

The same goes for wealth management. Wealth managers are well suited for this role and thanks to the tech stack, it can easily be achieved.

The current and upcoming industry of digital industry will fuel new opportunities in wealth management. With the right decision, wealth managers can achieve life-long success, just try to be the best.

That’s it–thanks.

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