As embedded finance continues to transform payments, lending, and insurance, a new frontier is emerging: Embedded WealthTech. This rapidly growing segment integrates wealth management and investment tools directly into non-financial platforms, creating seamless financial experiences for users.
Research suggests that the global embedded finance market, including wealthtech, will grow from $43 billion in 2021 to over $138 billion by 2026. Within this, embedded wealthtech is projected to reach $80 billion in revenue by 2030, driven by increasing demand for personalized investment solutions and broader financial inclusion.
This blog explores what embedded wealthtech is, why it matters, real-world applications, and the opportunities and challenges it presents for businesses and consumers alike.
Embedded wealthtech refers to the integration of wealth management tools, investment options, and financial planning services into platforms outside the traditional financial ecosystem.
This enables platforms—such as payroll providers, e-commerce sites, or digital wallets—to offer investment capabilities directly to users without requiring them to engage with separate financial institutions. Examples include: Payroll systems that allow employees to invest part of their paycheck as well as Digital apps embedding robo-advisors for personalized financial planning.
The growth of embedded wealthtech is fueled by advancements in APIs, Open Banking regulations, and demand for hyper-personalized, seamless user experiences.
Democratization of Investments: Traditionally, wealth management services catered to high-net-worth individuals, with barriers such as high fees and account minimums. Embedded wealthtech eliminates these barriers, making financial growth accessible to everyday users, including underserved populations and SMB employees.
Revenue Amplification for Platforms: Embedded wealthtech offers businesses new revenue streams. A report by Juniper Research found that platforms integrating investment tools can boost revenues by 30-50%, with recurring income from asset management fees, transaction charges, or premium services.
Improved Financial Inclusion: By embedding investment options into familiar platforms, users with limited financial literacy or resources can access financial planning tools in a simple, engaging way. For example, gig economy workers can allocate earnings into retirement savings through their work apps.
Hyper-Personalization Through Data: Platforms with rich customer data can tailor investment advice to individual spending habits, savings goals, or lifestyle changes, creating a highly relevant user experience.
Payroll Platforms and Retirement Planning: Platforms like Gusto and Zenefits integrate investment options into payroll systems, enabling employees to automatically allocate a portion of their paycheck to retirement plans or savings accounts.
Digital Wallets with Robo-Advisors: Fintech apps like Revolut and Cash App provide users with low-barrier access to investments, including fractional shares, ETFs, and cryptocurrencies, integrated within the wallet.
E-Commerce and Stock Rewards: Platforms experimenting with stock rewards allow users to allocate cashback or loyalty points toward fractional stock purchases. This innovative approach links daily spending to wealth creation.
SMB Financial Tools with Investment Features: SaaS platforms like QuickBooks and Xero integrate wealthtech capabilities, allowing small business owners to invest excess cash flow or plan for retirement within their financial management tools.
Regulatory Hurdles: Complying with financial regulations like PSD2, MiFID II, and local tax laws requires significant investment in compliance frameworks.
User Trust: Wealth management involves sensitive financial data. Platforms must ensure high levels of security and transparency to gain users’ trust.
Education Gaps: Many users lack financial literacy, which could hinder adoption without sufficient education and intuitive design.
Market Growth Potential: With 72% of Gen Z and Millennials expressing interest in embedded investment tools, platforms have a massive opportunity to tap into this demographic.
Financial Empowerment: Embedded wealthtech can enable SMBs and individuals to achieve better financial outcomes, fostering long-term engagement and loyalty.
Partnership Models: Collaboration between fintechs, wealth managers, and platforms can create robust ecosystems for innovation and scalability.
AI-Powered Financial Advice: Advanced algorithms will deliver real-time, personalized investment recommendations, adapting to user behavior and market conditions.
Broader Asset Classes: Embedded wealthtech will expand beyond traditional investments into alternative assets, such as real estate crowdfunding and ESG-focused portfolios.
Global Reach: With smartphone penetration increasing globally, particularly in emerging markets, embedded wealthtech has the potential to reach 1 billion users by 2035, driving financial inclusion.
Integration Across Industries: From healthcare apps to travel platforms, investment tools will be seamlessly embedded into more sectors, further normalizing wealth management as part of everyday life.
According to research by Bain & Company, embedded wealthtech could account for 20-25% of the wealth management market share by 2030, redefining how individuals approach financial growth.
Embedded wealthtech is not just a trend; it is a transformative force reshaping wealth management. By integrating investment tools into everyday platforms, businesses can unlock new revenue streams, deepen customer relationships, and foster financial inclusion.
The numbers speak for themselves: a projected $80 billion market by 2030 and a growing appetite among younger demographics signal a bright future. However, realizing this potential requires overcoming regulatory hurdles, building user trust, and focusing on intuitive design and education.
As businesses look to the future, embedded wealthtech offers a powerful tool to bridge the gap between financial services and everyday life. Platforms that embrace this shift will not only lead the market but also play a vital role in democratizing access to financial growth.
What role do you see embedded wealthtech playing in your industry?
