Over the past decade, fintechs have brought accessible, user-focused, and cost-effective financial products and services to a broader audience. This is especially true in the retail investment sector, where the pace and depth of innovation have been remarkable. A decade ago, the idea of offering digital, affordable investment platforms and apps to consumers with minimal investment thresholds amounts was a dream. Today fintechs playing in the investment space are on the brink of an Uber
UBER
The Introduction of Invisible Investing
Fintech’s entrance into the retail investment arena has democratized access to products traditionally available only to qualified investors or those with substantial capital. The first wave of investment fintechs introduced a variety of low-cost, digital investment platforms, often with a mobile-first approach, such as e-Toro and Robinhood. However, a significant level of investment knowledge and experience was still necessary. This era also saw the rise of robo-advisors, like Nutmeg, which simplified the investment process by automating portfolio management and maintenance.
The next wave of innovation saw the launch of micro-investing platforms like Plum and Chip. These platforms integrated investment with savings and personal financial management, allowing users to round up transactions to invest spare change into stocks or low-cost ETFs. With the onset of micro-investing, novice retail investors with minimal capital could begin investing with less exposure to complex products, thus removing the volume of complex information and significant knowledge required. The foundation for invisible investing was laid.
The Push for Invisible Investment Continues
Today’s investment…
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