Online Wealth Management: What Are The Challenges?

The digitisation of the wealth management industry has picked up a fair bit in India, especially among new-age investors. Millennials and gen-Z are used to having personal financial planning tools for almost every aspect of financial planning and favour the swiftness and convenience granted by a digital wealth management platform. Hence, as online financial planning platforms boom in India, it’s only a matter of time before every person can access ways to build their capital from their mobile phones.

In this surge, as a consumer, what precautions should you keep in mind to ensure that you haven’t been duped out of a profitable online wealth management experience? To find solutions, we first need to identify the problems that need to be addressed. Hence, this blog will discuss some common challenges that affect online wealth management. By doing so, we hope to give you a clearer idea of the landscape you are stepping into that you can mitigate against.

1. Lack of trustworthy relationships:

Relationship building is a central tenet of wealth management. A trustworthy and mutually respectful relationship between a wealth manager and their client is at the core of helping consumers create wealth. Digital wealth management takes away this critical ‘human’ aspect of wealth management, leaving no physical person to build a relationship with. The lack of face-to-face interaction is an unfortunate downside of digital wealth management, eroding the trust and relationship aspects of wealth management.

2. Technological challenges:

One cannot ignore the technology-related issues that often crop up while using any tech-based tools or platforms. Technology, while immensely powerful, can also be flimsy and unpredictable. Thus, digital wealth management has to take into account all the challenges that pop up due to internet issues, server closures, web maintenance, electricity blockages, system errors, software gaps, and so on.

3. Inadequate niche options:

Most digital wealth management platforms encompass the mainstream investment options that a large part of the population goes for. While you can find lucrative choices of mutual funds and equity instruments, it can get trickier to venture into niche investments such as INVITs, REITs, PMSs, and more. You will more often than not, need to access multiple applications to diversify your investments and explore less unconventional options. Although digital wealth management platforms give you able advisories on where to put your money, you will need additional support to execute these advisories.

4. Data safety concerns:

Anything related to the internet comes with cyber security and data safety concerns. With internet scams growing, it can be very easy to get blindsided by lucrative deals and suspiciously beneficial schemes. A lack of research can lure you into being the victim of many scams and data stealth. Along with this, data protection is an ongoing concern that any tech platform has to account for.

We’ve built Tailwind as an online wealth management platform to address all these challenges and more to give you a seamless and smooth online wealth management experience. Download our app today to kickstart your investment journey with our expert wealth managers!


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