In today’s fast-paced world, individuals need to manage their finances and capital actively.
As such, digital wealth management has emerged from an industry comprising a group of companies that provide a range of services in the financial sector – including data optimization and analytics, eCommerce advisory, and liquidity management.
Digital wealth managers help clients with investments in things like ETFs (exchange-traded funds), index funds, and commodities using algorithms to optimize client portfolios based on risk profiles and goals. Digital wealth managers also offer Robo advisory services such as automated taxes and portfolio management. This enables members to get new investment ideas to execute themselves or recommend to their discretionary money managers. When it comes to implementing investment ideas, Robo advisory firms provide data and analytics on the best platforms to execute each idea.
With such an extensive range of service offerings, there is still a need for human contact as self-directed investing takes off. This is one area where digital wealth managers excel by leveraging technologies like chatbots and virtual assistants to handle client inquiries quickly; these are some of the reasons why digital wealth management services are becoming more popular with clients globally.
Benefits of digital wealth management
1. Easy accessibility
Wealth management services, such as digital wealth management, are available 24 hours a day and seven days a week. The investor can contact their representatives at any time to take advantage of market opportunities or manage risk exposure.
2. Transparent charges and fees
Digital wealth managers do not charge commissions on the transactions they make for clients; instead, they typically charge asset-based fees (AUM fees). These AUM Fees remain competitive and affordable – even with the convenience provided by online investment tools. Digital wealth management also offers low minimums compared to traditional financial advisory firms. As such, investors can start investing with smaller sums of money without worrying about the associated costs imposed as part of traditional investment strategies.
3. Asset allocation and security
The client’s portfolio is monitored frequently and automatically, resulting in the periodic rebalancing of the account as its asset allocations change over time. This reporting is provided to help clients make more informed investment decisions as they monitor their assets and net worth.
4. Constant advice from qualified financial advisors
Digital wealth managers typically employ a team of professionals who offer expert advice on an ongoing basis. These teams ensure that clients receive round-the-clock access to a range of services, including market analysis, investment management, and risk assessments. Such information allows investors to decide where they want to invest their money or how much money they need to put into real estate investment.
5. Access to the global market
As digital wealth management services are available online, investors can invest across borders without leaving their homes. The high degree of automation digital wealth managers offer allows them to manage trades across all major markets worldwide with speed and accuracy. This offers flexibility as well as access to more investment opportunities for an investor’s portfolio.
For individuals seeking to monitor their investments or transitioning out of self-directed investing, digital wealth management provides a range of service options within one company so clients can easily switch from one service offering to another.