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WealthTech: the next evolution in banking

Written by: Job Mantz, Country Manager MeDirect Netherlands

In the past two decades, I’ve been a firsthand witness to the remarkable transformations in the banking industry. We’ve left behind the era of traditional brick-and-mortar branches, embracing the convenience of digital banking. Today, a simple tap on your phone can replace the need to call a broker’s desk, and even payments have transitioned from physical cards to effortless mobile transactions. I love it! Banking, saving, and investing have become more accessible and efficient. Now, we’re on the brink of an exciting new chapter with the emergence of WealthTech, the next frontier in financial empowerment.

WealthTech aligns perfectly with our purpose and pillars, as it stands at the forefront of a financial revolution, fundamentally reshaping how we manage and grow our wealth. Powered by cutting-edge technology, WealthTech is not just about innovation; it’s about empowering retail savers and investors with efficiency, personalization, and profound insights. Data is the lifeblood of this transformation, and I’m proud to see how data-driven innovation is driving our mission to empower people to grow their wealth with confidence.

But what exactly is WealthTech? It’s the natural evolution of fintech, encompassing a range of tools like digital advisors, digital wealth management platforms, and online investment tools. These innovations are changing the way we perceive wealth and how wealth managers engage with their clients.

So, why is WealthTech the next evolution in banking? Several factors are propelling its adoption. Younger investors are taking control of substantial wealth transfers, relying more on digital solutions. The COVID-19 pandemic accelerated the digitization of financial services, and consumers now expect app-based financial experiences.

In a recent study, Morningstar highlighted the key trends driving WealthTech innovation. These trends include a shift away from basic personal financial management (PFM) towards long-term goals and outcomes, personalization at scale, breaking down data silos across applications, and leveraging AI. These trends are reshaping wealth management, with a strong emphasis on data quality, interoperability, and personalization.

As we move forward, the importance of data cannot be overstated. It underpins innovation, personalization, and efficiency, serving the diverse needs of advisors, investors, and the industry as a whole. I’m thrilled and immensely proud to be part of this transformative journey, empowering people to grow their wealth with confidence, in perfect alignment with our purpose and strategic pillars.

MeDirect Bank is a trading name of MeDirect Bank (Malta) plc, registered under company number C3412. MeDirect is licensed by the Malta Financial Services Authority to conduct banking activities in accordance with the Maltese Banking Act (Cap. 371) and investment services under the Maltese Investment Services Act (Cap. 370).