A new report from global financial advisory and fintech organization, deVere Group, reveals a 65% increase in the usage of fintech apps in 2022. The study found that boomers, those born from 1946 to 1964, were the fastest growing demographic of fintech consumers with 78% reporting increased usage of wealthtech apps, such as the ones developed by deVere.
Wealthtech, a combination of the words “wealth” and “technology”, refers to digital solutions that streamline wealth management processes. As a sub-sector of fintech, wealthtech is growing alongside other technological advancements in the financial industry such as digital payments and regulatory technology (regtech).
Over the past five years, deVere has rolled out a range of cutting-edge wealthtech apps, including Vault, a global e-money currency app and multi-currency card, deVere Crypto, a cryptocurrency app for storing, transferring, and exchanging major cryptocurrencies like Bitcoin, and Catalyst, a low-cost investment and savings app.
Fintech is the “New Normal”
According to deVere CEO, Nigel Green, “fintech is already the ‘new normal.’ This is backed up by the figures revealing that 90% of people in the U.S use fintech services now – and we expect it to be a similar picture in most other major developed countries.”
Contrary to popular belief, the growth of fintech consumers is not limited to the younger, tech-savvy generations. The data from deVere shows that older generations, including boomers, are becoming more tech-savvy and recognizing the benefits of fintech apps, such as convenience, cost savings, and increased control over their finances.
The Great Wealth Transfer
Another driving factor in the growth of wealthtech is the Great Wealth Transfer, in which baby boomers, the richest generation in history, will transfer over $30 trillion to their tech-orientated children in the coming decades.
Fintech companies began to emerge after the 2007-2008 financial crisis, filling the gap between what traditional financial services companies were offering and what customers wanted in terms of customer experience. The global wealthtech industry is booming and is expected to surpass 2021 funding levels with a more favorable market outlook for 2023.
A Personal Finance Revolution
In conclusion, the deVere CEO states, “we are witnessing a personal finance revolution and it’s driven by technology. The shift is far-reaching and permanent. The fintech genie is out of the bottle.”