Financial technology: 'Wealthtech' and 'Insurtech' — two bright spots that will redefine the industry in FY 24-25, says expert

As the financial technology (finTech) landscape continues to evolve, two sectors — WealthTech and InsurTech — are emerging as the brightest stars. With innovative solutions and disruptive technologies, these sectors are poised to redefine the FinTech industry in the fiscal year 2024-2025 and beyond.

WealthTech

Rayan Malhotra, a serial entrepreneur, FinFluencer and CEO of NeoFinity, informs that WealthTech — the amalgamation of wealth management and technology — is experiencing a surge in popularity as consumers seek more accessible and personalized investment options. He says, "In FY 24-25, WealthTech firms are expected to leverage advanced algorithms and artificial intelligence (AI) to offer tailored investment strategies to a broader range of investors. Robo-advisors, powered by machine learning algorithms, will play a pivotal role in democratizing wealth management, providing cost-effective solutions and personalized advice based on individual financial goals and risk tolerance."

Moreover, he feels that WealthTech platforms are anticipated to integrate Blockchain technology to enhance security and transparency in asset management. "By leveraging blockchain's immutable ledger, WealthTech firms can streamline processes such as asset transfer and settlement, reducing administrative costs and mitigating the risk of fraud," he adds.

InsurTech

On the other hand, he says InsurTech — the intersection of insurance and technology — is set to revolutionize the insurance industry in FY 24-25. 

He informs, "InsurTech startups are leveraging data analytics and IoT devices to offer usage-based insurance (UBI) models, providing customers with personalized premiums based on their actual behaviors and risk profiles. By utilizing telematics devices installed in vehicles or wearable devices, insurers can accurately assess risk factors such as driving behavior or health habits, leading to fairer pricing and improved customer satisfaction."

Furthermore, he states that InsurTech companies are exploring innovative ways to streamline the claims process through automation and AI-powered chatbots. "By utilizing natural language processing (NLP) algorithms, these chatbots can efficiently handle claims inquiries, provide real-time assistance, and expedite claims settlement, enhancing the overall customer experience and reducing operational costs for insurers," he avers.

The CEO of NeoFinity states that the integration of Blockchain technology is set to revolutionize the insurance industry by enhancing transparency, reducing fraud, and facilitating seamless transactions. He says, "Smart contracts, powered by Blockchain, enable automated claims processing and execution, eliminating the need for intermediaries and reducing administrative overhead."

Overall, the convergence of WealthTech and InsurTech is poised to reshape the FinTech landscape in FY 24-25, driving innovation, improving efficiency, and delivering greater value to consumers. "As these sectors continue to mature and evolve, collaboration between traditional financial institutions and FinTech startups will be crucial to unlock the full potential of technology-driven solutions and navigate the complexities of regulatory compliance. With a relentless focus on innovation and customer-centricity, WealthTech and InsurTech are set to redefine the future of finance, making wealth management and insurance more accessible, affordable, and transparent for everyone," he sums up saying.