According to recent statistics from one of the biggest independent financial advice, asset management, and fintech organizations in the world, the use of finance applications increased by almost two-thirds in 2022, with boomers being the generation with the strongest growth rate.
The utilization of deVere Group’s suite of fintech apps has increased by an astounding 65% year over year, according to the company, which operates in more than 100 countries worldwide.
By age group: 78% of baby boomer customers (those born between 1946 and 1964) reported increasing their use of fintech tools in 2022, such as wealthtech apps.
The same was also reported by 67% of millennials (those born between 1981 and 1996) and 71% of Gen X (those between 1965 and 1980).
DeVere has created and released an innovative suite of wealthtech apps during the past five years.
These include Catalyst, an inexpensive investment and savings app, Vault, a global e-money currency app and multi-currency card, deVere Crypto, a cryptocurrency app to store, transfer, and exchange major cryptocurrencies, including Bitcoin, Core, an app to monitor your investments in real-time while you’re on the go, and others.
Digital tools that speed up various aspects of wealth management are included in the term of “wealthtech.”
Wealthtech is one of the subsectors of the fintech business, along with digital payments, regulatory technology (regtech), and insurance technology (insurtech), among others.
DeVere Group CEO Nigel Green comments on the data’s findings: “We were already in an exciting new era before the epidemic, propelled by the breakneck rate of digitalization in our daily lives. But the epidemic hastened this trend, just as it has in so many other aspects of our life.
“People are embracing the convenience of instant, affordable access to, and usage of, their money through wealthtech apps now more than ever before. The way we save, invest, use, and manage our money has changed forever and is changing quickly, that much is evident.
The “new normal” already includes fintech. This is supported by statistics showing that 90% of Americans currently use fintech services, and we anticipate a similar situation in the majority of other major industrialized nations.
The statistics dispel the misconception that only “digital native” generations utilize financial technology, according to Green, who also points out that boomers have been the fastest-growing segment of fintech users in recent months.
The results show that older generations are becoming more computer savvy and are becoming aware of the enormous potential benefits of fintech apps, including the fact that they can help you save time and money and give you greater control over your finances.
The majority of experts concur that a number of factors, including the accessibility of the applications, ensure the expansion of the wealthtech sector, which includes tools for tax planning, investments, wealth protection, estate planning, retirement structuring and planning, and general saving.
The Great Wealth Transfer is another important motivator.
Baby boomers, the wealthiest generation in history, will transmit more than $30 trillion (516 trillion) to their more tech-focused Generation X and Millennial offspring over the course of the following few decades. In the years following the global financial crisis of 2007–2008, when traditional financial organizations were, for the most part, caught off guard by the catastrophe, fintech companies gained traction as a concept in the financial services sector.
Fintech startups filled the gap between what banks and other traditional financial services providers were providing and what customers today want, particularly in terms of user experience.
Despite financing levels being below the all-time highs of more than $25 billion witnessed the year before, the global wealthtech business is thriving after a wonderfully successful 2022. But given the worsening state of the global macroeconomic environment in 2017, this is to be expected.
However, most analysts anticipate that the wealthtech sector will surpass 2021 levels of venture capital, private equity, M&A investments, and R&D due to more promising market and economic outlooks for 2023.
“We are witnessing a personal finance revolution, and it’s driven by technology,” says Green in his conclusion. The change is substantial and long-lasting.
The fintech genie is no longer contained.
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