Self-service investment tools are becoming a core pillar of wealth management, with it serving as an important entry point for many, according to Tamara Kostova, Founder and CEO of WealthTech company Velexa.
Kostova noted that self-service investment tools have become the default entry point into the world of wealth management, especially when coupled with hybrid AI/human guidance is layered on top.
“Financial service providers that don’t offer intuitive, guided self-service will gradually lose relevance—and clients.”
This rising popularity of self-service investing has been supported by the rise of mobile-first platforms, fractional shares and low/zero commissions, which have helped remove the barriers to entry. For instance, digital trading platforms like Robinhood and WealthSimple have allowed people to quickly and easily build a portfolio without needing to reach out to a firm and meet with a financial advisor. This has allowed them to fit investing around their busy lives, making it much more appealing to get started.
This shift has also been encouraged by various regulators around the world, which are hoping to turn retail savers into investors. For instance, the UK recently announced plans for a new awareness campaign set for 2026 that will target people with low-interest savings accounts. It aims to boost awareness for investment opportunities and the opportunities they offer. Initiatives like this around the world are helping to encourage DIY investing.
A clear example of where this is happening is in Canada. A recent study in Canada by the B.C. Securities Commission (BCSC) found that 43% of Canadian investors have some DIY investments and 64% have an advisor. However, a third of those with an advisor also self-manage some of their investments.
Kostova noted that there younger generations are getting involved with investing but expect slick digital tools. “These digital natives demand control over their assets in the form of real-time reporting, seamless mobile access, transparency, and customisation.”
Firms will need to ensure they have tools available that meet these demands, or risk losing out on potential customers that are attracted to the digital-native WealthTech apps. But adopting enhanced technology is not exclusively about meeting customer demands, it can also allow a firm to reach more people.
Kostova pointed to a report from Reuters that noted physical investing advice is scarce in the UK, with under 10% of adults receiving regulated investment advice in the past year. However, through AI-powered guidance, digital self-service investment platforms can solve this problem.
Kostova added, “Of course, without in-app guidance tailored to financial literacy levels of each investor segment (e.g. market news, basic education for first-time investors) there are risks for end-users related to overtrading, herd effects, and “finfluencer” and social media noise – all of which need to be carefully considered and mitigated by investment service providers.”
On a final note, Kostova offered an insight into what a great self-service platform should look like. At the top of this list was guided DIY, not full ‘do-it-alone.’ This includes offering simple explanations, market news and gamified education for beginners should be embedded across the user journey.
Next, she pointed to offering various assets. “Multi-asset from day one. Bonds, ETFs, equities, digital assets and listed funds in one place—aligned to local market requirements (e.g., Shariah compliant instruments in the GCC, US equities in Brazil, bonds in Eastern Europe).”
Kostova also highlighted the importance of being hybrid at the flip of a switch. This means easily going from self-service trading to AI generated portfolio suggestions, to chat/video with an advisor.
Finally, she noted the importance of meeting the customer’s needs. “Cover metrics that matter and drive engagement – track literacy uplift, completion of financial-health tasks, and long-term outcomes—not just log-ins and trades.”
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