personal wealth creation: trends & monetization
Help people become wealthy and make it as a successful business
👋 I’m Zoe: builder, advisor, ever curious, built 11 MVPs, featured on Lifehacker, Product Hunt #1, and tech blogs in 7 countries. Also a Medium Top Writer & HackerNoon winner in VC topics. I’m part of On Deck Founder, ODF10.
At Venturescale, I unpack new insights on profitable markets—and how you can build and monetize the future of consumer tech. Read here if you’re interested in Online Shopping, D2C, Fintech, E-Commerce.
Consumer wealthtech is on the rise
If your money sits in the bank, your bank makes money, not you. This is why WealthTech exists. It helps you save, invest, trade, manage and grow your wealth at your fingertips. Wealthtech may also provide tools for real-time stock prices, portfolio management, charting, market news, reporting, simulator, etc.
For example, people can buy/sell stocks, options, and IPO shares online using Robinhood. Public.com lets you invest in stocks and see other people’s portfolios. You can buy and sell Bitcoin, Ethereum via Coinbase or Binance. You can also use Wealthfront to automate savings and investment.
Today, we’ll examine companies that provide for personal wealth building. If you want to build something in consumer FinTech, keep reading because we’ll unlock exciting opportunities!
1. Key trends
(1) Wealthtech is growing rapidly:
Wealthtech funding hit $20 Billion in 2021, up from $9.2 Billion in 2020.
Digital wealth management will become a $16 Trillion dollars market by 2025 according to Financial Times.
The top 4 FinTech sectors that attract the most funding include:
(2) Wealthtech that went public evidence that consumer-facing solutions are creating clear winners :
Coinbase (April 2021)
SoFi (June 2021)
Robinhood (July 2021)
MoneyLion (Sept 2021)
Nubank (Dec 2021)
Wise (July 2021)
(3) Rise of social investing:
Companies are taking a “social” approach to online investing by providing social networks, user-generated content, and community learning components to help investors succeed.
Public is making investing in stocks more social. Users can follow each other, see what they invest in, share their portfolios, and create chat groups with friends and communities.
TradingView is a social platform for traders and investors. Users can discover charts, broadcast trading activity live, or publish analysis as a video idea.
Fractional allows you to co-own real estate with friends and investing communities.
(🔒 Full version) +6 more key trends in the WealthTech space. These insights will help you capture specific customer needs:
🔑 (4/9) Which websites are offering alternative investments for everyday consumers? (3 company examples)
🔑 (5/9) How do e-commerce websites enter the investing space and expand new product offerings? (2 company examples)
🔑 (6/9) The millennial & Gen-Z investors are leading the WealthTech market adoption. What are they really looking for when it comes to investment apps?
🔑 (7/9) How new companies help everyday people become wealthy by using new product strategy? (3 company examples)
🔑 (8/9) How non-investment apps are entering the WealthTech market to expand revenue streams? (3 company examples)
🔑 (9/9) What kind of new product categories are popping up in the Wealth/FinTech space? (6 company examples)
2. Market players, competitors & databases
Find market niches, discover competitors, and explore ways to differentiate your new ideas:
🏢 Total 88 company examples across consumer WealthTech
🔖 Total 7 positioning categories
🗃 Company databases with key information: value proposition, website link, funding type, total funding raised, year founded, company size, and location.
👌 Filter competitors by categories. Or search by product name, country, funding stage, etc.
3. What problems do they solve?
(1) Eliminate brokerage fees:
Online brokers typically charge transaction, administration, management, or ticketing fees.
Platforms like TD Ameritrade, E*Trade, Fidelity, Schwab Mobile, Robinhood, Public, eToro provide commission-free, “$0 commission trade” for stocks, ETFs, options, etc.
(2) Investing is risky & intimidating:
New platforms are democratizing investing knowledge.
Public.com lets you see what people invest in and learn from others in the feed.
TradingView users can learn from other traders through live broadcasts or technical analysis videos shared by others.
(🔒 Full version) +3 more well-defined market needs in the space. Solving the right problems will help you build something people want:
🔑 (3/5) How new startups are thriving by focusing on this market need? (3 company examples)
🔑 (4/5) How consumer investing apps differentiate and solve problems differently? (6 company examples)
🔑 (5/5) How companies make money management faster? (5 company examples)
4. Business models, revenue streams & monetization
(1) Interest—earning interest by loaning out cash on the uninvested assets in clients’ accounts. Schwab made $265 billion interest earnings in 2018; TD Ameritrade had 23% of its $5.4 billion net revenue in 2018; ETrade had 64% interest revenues of $2.8 billion net revenue.
(2) Rehypothecation—use client securities to support other financial activities.
(3) Trading fees—Cryptocurrency exchange platforms typically monetize through this model. A service fee is incurred when customers buy and sell crypto through the exchange.
(🔒 Full version) +7 more revenue sources used by most consumer wealthtech platforms.
5. What are the next big things?
(1) Micro-investing will explode beyond stocks:
Fractional investing will appear in different niches, not just owning partial stocks.
Robowealth allows users to invest on behalf of others, i.e. to invest for one’s parents, or for children.
Think about “alternative micro-share ownership” in other areas. For example, investing in someone’s educational fund, employee shares, makers/developers fund and get a percentage of returns when the asset appreciates.
(2) New ways to own crypto assets:
Asset classes are expanding beyond cryptocurrencies. OpenSea, CryptoPunks, Rarible are where people buy and sell non-fungible tokens. Fyooz and BitClout are where people buy and sell social tokens (fungible tokens).
As newer crypto asset classes are emerging, more solutions are needed to make access to new assets as frictionless as possible.
Ideally, new NFT marketplaces can differentiate by solving these huge pain points: reducing scams, gas fees, plagiarism, false transactions, etc.
(🔒 Full version) +5 more insights that explore the future of Wealth Creation, what new solutions will look like, where’s the market demand, and answer the most important questions for your investors:
🔑 (3/7) How can retail, media and content websites tap into the WealthTech market?
🔑 (4/7) What new consumers expectation are shaping the demand for digital investing platforms?
🔑 (5/7) How to create new products in an adjacent market that has $156.6 billion revenue worldwide?
🔑 (6/7) Where’re the new opportunities for Web3 digital assets platform?
🔑 (7/7) How can new startups build something to attract the younger investors?