Home IoT Can Change Wealth Management

IoT Can Change Wealth Management

Is the Internet of Things going to change the wealth management customer experience? Some of the dreams of wealth management have already come true.

Is the Internet of Things going to change the wealth management customer experience? In the last few years, there has been a lot of talk about how the Internet of Things (IoT) can change how we live. People hope that connected devices will share information to make our lives easier. Microwaves that scan food packaging, lights that turn on and off when we enter and leave rooms — and fridges that order food when we run out are some examples of the IoT miracle.

As they say — whether you’re rich or whether you’re poor, it’s nice to have money. And it’s nice just to save a little money.

How Can Technology Change Our Interactions?

Are you one of the many people who wear or have a smartwatch? If you are, then you’re more aware of how technology can change how we interact with appliances and material things. However, it may be hard to imagine how the Internet of Things could change a service industry like wealth management.

However, there is a lot of room for growth. Sensors, wearables, and other devices and apps can now share data with other applications. As a result, wealth managers and advisers can personalize accounts more cost-effectively, and this moves the wealth management system forward.

Significance of IoT

IoT can significantly increase customer service and outcomes.

Account-holders may find a local advisor using geolocation, and their calendars can sync while they are speaking with each other. Most technology will make better use of everyone’s time.

A financial advisor can utilize the tech, Open Finance, to get all financial data. Many systems can help in the field of finance and will assist the advisor in guaranteeing the customer has adequate money for bills, savings, and long-term investments.

A financial management company can also find tech solutions that help bridge the gap between two separate applications. For example, if a wealth manager uses a product such as Black Diamond for client management and a product like Asset-Map to help find new opportunities for those clients, there’s a solid chance that somebody somewhere has set up Black Diamond integration for Asset-Map. (And they have.)

What About Wearables

Even wearables nowadays can help people plan for their retirement. In addition, a wearable can tell people how healthy they are, how likely they will get sick, and how well their organs are working.

Account owners can use this information to make precise, personalized calculations about how long a person will live. A better understanding of an individual’s health could help advisers and wealth managers develop better solutions for their clients’ needs. Always good to know is the length of life expectancy or the need for better personal and professional care.

Account owners can use this health and lifestyle data to make customized cash flow forecasts. The forecast uses real-time monitoring information of different factors that affect life expectancy.

Knowing how much exercise you do and how much you eat can boost morale. It can also help providers figure out how much to charge for products that promise to make money. In addition, account owners can set up notifications to help improve health and lifestyle factors. For example, encouraging exercise, making healthier choices, and translating health into telling people to change their pension contributions.

An Example

Vitality is an excellent example of a company that uses innovative technology. This company uses rewards to encourage and keep people from doing healthy things. People who sign up for Vitality get discounts on trackers from their partners. When they record an activity like a workout, steps, or meditation through the Vitality App — they get free drinks from Caffé Nero every week for a year. Another way IoT is permeating all business.

Vitality members get points for things they do for exercise. Over time, these points add up to make the bronze, silver, gold, or platinum members. As a result, members can get lower product fees on their pension investments based on their status. They can get them all the way down to zero when they reach Platinum status. The company calls it “shared value insurance.”

It is so named because it gives members tangible health and financial benefits. It helps Vitality and its advisers because people keep investing for longer. It also helps society because more people have better health and more money. And there are many similar companies out there.

Many companies are changing to a motto of better daily exercise for employees — and they get better insurance. Of course, none of this could be done without new technology.


One way to make investments more personalized is to use behavioral data to determine how much risk each person is willing to take. Then, the system can recommend funds and companies that match the person’s interests and purchasing habits. It can also work the other way around.

You can boost the value of your investments by assisting people to buy more products from the companies you own. In addition, a link between a client’s interests and investments should help them become more interested in their money.

Real-time information can help investment managers decide whether to buy or sell.

For example, crop sensors are used to understand how decisions are made and offered from financial managers to clients. These sensors measure air temperature and water content in the soil — then financial managers can take a short position in the wheat market for their clients.

Tracking how much fuel you use in your home is another example. That info could help you decide whether to invest in or get rid of energy supplier stocks. Having information then shows us that wealth can come with the use of the IoT.

Real-time information can also help drive environment, social, and governance (ESG) investing to become more common.

More accurate data collection and reporting mean more transparency and better corporate behavior. For example, if the company’s carbon footprint, waste management, or employment practices fall below a certain level, the system liquidates the holding automatically. This could happen if an asset manager sets a certain threshold for a particular set of criteria.

Sensors and devices are becoming more common in a wide range of industries. However, we are still in the early stages of how IoT products will affect infrastructure and security and how businesses will make money as IoT becomes more common.

Wealth Management Industry

The big question is how the wealth management industry takes advantage of this power and uses all the available data.

Many companies that still use old technology have difficulty getting data out of old systems.

It’s like battery power is stopping the development of electric cars. Still, the lack of a rich platform ecosystem and an open operating system that lets us plug and play are also preventing us from taking full advantage of IoT.

IoT devices used to manage wealth become more important as more people store more data.

As a result, the ability to capture and use this data grows more important. Firms will be able to clear these hurdles when they start using the most up-to-date APIs and intelligent data analytics.

IoT can be a game-changer. There, different systems from providers in different places will talk to each other seamlessly, benefiting everyone in the process, including finances and wealth management.

Move forward and increase your business to include a new way to take care of your own wealth management.

Image Credit: Stan Krotov; Pexels; Thanks!

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Brad Anderson
Former editor

Brad is the former editor who oversaw contributed content at ReadWrite.com. He previously worked as an editor at PayPal and Crunchbase.

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.