The WealthTech sector continues to have strong growth opportunities across major markets, like the US and Europe, but it is also gaining significant attraction in other markets around the world.
Adoption of WealthTech solutions is only expected to continue over the coming years. For instance, ResearchAndMarkets.com estimates the WealthTech solutions market to be worth $5.4bn in 2024 and grow at a CAGR of 14.9% to be valued at $9.4bn by 2028.
The sector has largely been led by countries like the US, UK, Germany and France but funding in these regions has been in decline. With 2024 being a tough year for a lot of businesses, it is no surprise that total funding in the WealthTech sector declined. Research from FinTech Global found that US WealthTech deal activity dropped by 65% YoY, with total funding going from $23.1bn down to $8.2bn – a 65% drop. Similarly, European WealthTech deal activity plummeted by 80% in 2024 YoY, with total funding across the continent dropping 65% to $5.4bn in 2024.
While these regions are still bastions of the WealthTech sector, other regions are starting to increase in market size. For instance, in Q3 2024 the 10 biggest WealthTech deals came from several emerging countries. Aside from the US, the countries represented were Chile, India, Indonesia, Lithuania, the Philippines and Uzbekistan.
FinTech Global recently spoke to several industry players to identify what regions wealth management firms should be watching.
GCC
One of the regions a couple of the experts noted as the GCC region. The Gulf Cooperation Council includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. With the GCC FinTech market being valued at $5.4bn in 2023, and predicted to reach a valuation of $23.1bn by 2032, according to IMARC, there is clearly a big opportunity for companies.
Tamara Kostova, CEO at Velexa, said, “The GCC region is emerging as a key hotspot for WealthTech innovation, driven by ambitious economic transformation initiatives like Saudi Arabia’s Vision 2030 and the UAE’s FinTech-friendly policies.
“These countries are focused on building a diversified and inclusive financial ecosystem, fostering fintech innovation, and attracting global investment players. With a young, tech-savvy population and increasing digital adoption, the region offers significant potential for embedded investing and other digital wealth solutions.
“The GCC’s commitment to modernising its financial sector, coupled with strong governmental support and initiatives like fintech sandboxes, creates a fertile ground for WealthTech companies to thrive and redefine wealth management in the region.”
Fredrik Davéus, CEO and co-founder of Kidbrooke, also highlighted the UAE as a great market for WealthTech. “UAE given that they are reforming group pension rules to enable occupational pension benefits.”
The new voluntary scheme allows employers to transition from the traditional gratuity model to investment-based alternatives, offering employees greater financial security through tailored investment options. These alternatives include safeguards against inflation and company insolvency, ensuring expatriate workers can better plan for their future.
Latin America & Southeast Asia
A couple other markets Kostova highlighted are Southeast Asia and Latin America, which are regions that traditional wealth management services have typically been unavailable for a large percentage of the population. This has created a significant gap that digital service providers can come and solve, she explained.
“Countries like India, Indonesia, and Brazil have not only seen rapid smartphone and internet adoption but are also emerging as key markets for neobank adoption, with neobanks experiencing substantial growth due to their ability to deliver seamless, mobile-first financial services.
“These regions’ digitally native, youth-driven populations, combined with their increasing comfort with digital-first user experiences, present significant opportunities for WealthTech growth and transformation. Neobanks are paving the way for broader financial inclusion, signalling strong readiness for advanced digital wealth management solutions.”
These markets, alongside the GCC, are a big focus area for Velexa in 2025. Over the year, the company plans to continue its expansion efforts into key growth markets, which include Saudi Arabia, the UAE, Bahrain and Brazil. It is also exploring the potential expansion into India. What makes these areas appealing is the sizable opportunity created by their dynamic economy.
“These regions present immense potential due to their dynamic economic environments, increasing adoption of digital services, and growing demand for accessible wealth management solutions. With progressive initiatives from the government and private sector, focusing on financial innovation, these markets are primed for digital-first investment platforms that cater to a rapidly evolving customer base.”
European private banking
For Fincite founder and co-CEO Ralf Heim, one of the most exciting markets for WealthTech is in Europe. He said, “The European private banking market is experiencing a positive ‘Innovation Momentum.’ Banks are leveraging their interest-rate-driven profits to invest in technology, positioning themselves for success in a ‘post-interest-rate’ environment.”
Fincite is helping to support this space through its focus on time-to-value, which enables banks to deploy its software quickly. Through this, smaller firms, independent wealth managers and IFAs can leverage the solutions without needing to go through lengthy and complex implementations. He added, “At the same time, it minimizes risks for larger enterprises, ensuring a seamless and efficient adoption process.”
Looking to the future, Heim also sees there being a shift in focus in the market. Currently a lot of attention is placed on private banking customers, but this could soon shift as the generational wealth transfer continues. “While a lot of focus is on the Private Banking Customers, the focus might shift towards the “poorer millionaires” – the affluent segment – soon. Empowering Advisors to serve more customers in a scalable way, will lower the costs of Advice and thus open up new Segments for the Advisors.”
Future markets for WealthTech
Looking even further ahead, there are bound to be other regions and countries that will become a major market for WealthTech in the coming years.
Kidbrooke’s Davéus believes there will likely be a number of countries that will become the domineering force in each region, but it is tough to know who they will be. He said, “With all the geopolitical developments currently happening I think we may see more regional actors dominating each region. Very hard to make any predictions around this at the moment.”
As for Tamara, she sees Sub-Saharan Africa as an attractive market in the future. “In Sub-Saharan Africa, WealthTech has significant potential due to the region’s young and tech-savvy population, along with increasing mobile phone usage. The demand for affordable, user-friendly wealth management solutions is growing, especially in markets like Kenya and Nigeria, where mobile banking and digital finance are rapidly expanding.”
Alternatively, there are still some established markets that could see a boost in WealthTech over the coming years, most notably being Japan. She said, “Japan, with its aging population, presents an interesting opportunity for WealthTech, particularly in retirement planning, long-term care, and estate management.
“As the elderly population grows, the demand for digital financial services to manage wealth, plan for retirement, and navigate estate issues is increasing. WealthTech solutions that offer personalised advisory services, tailored investment strategies, and digital tools to manage retirement savings will be crucial in helping Japan’s elderly population navigate their financial futures.
“Additionally, Japan’s established financial services sector, coupled with government initiatives such as the NISA (Nippon Individual Savings Account), is fostering a more inclusive investment environment. WealthTech firms can build on these initiatives by creating platforms that help individuals maximize tax-free investment opportunities and simplify the investment process, all while catering to the needs of an older demographic.”
How opportunities in emerging markets differ to established
No two markets are the same and each will have their own unique challenges or gaps that need to be addressed. As wealth management firms and WealthTech companies look to support those in these emerging markets, they will need to understand the best way to achieve that.
Kostova explained that the consumer bases of emerging and established markets are very different. Within emerging markets, there is greater demand for accessible, low-cost investment solutions due to traditional wealth management not being readily available to many of them. Kostova added, “True to our mission we believe that digital platforms have the potential to democratise wealth management in these markets, leveraging mobile-first, user-friendly interfaces that appeal to younger, tech-savvy, and increasingly affluent consumers.”
On the other side, established markets have more mature financial ecosystems and WealthTechs can excel at evolving these systems into a customer-centric approach.
“These markets combine both digital and traditional financial advisory approaches, allowing institutions to offer a seamless mix of automated investment tools and personalised wealth management. In fact, recent Deloitte research shows that over the next three years, 67% of advisors are expected to rely on hybrid, tech-driven approaches to meet the needs of their clients. Here the emphasis is on optimising user experiences, leveraging advanced analytics, and integrating AI to further improve service delivery while addressing the needs of more sophisticated investors.”
In short, Kostova explained, “While established markets emphasise wealth preservation and tailored investment strategies, emerging markets present a unique opportunity to drive financial inclusion and offer education on investing, paving the way for long-term market growth.”
However, Heim had a differing opinion on the difference between markets. He noted that there aren’t really any established markets for WealthTech and even in those, there are still major challenges still to be addressed. He said, “With very few exceptions (like the US), I do not see established Markets when it comes to WealthTech. Software Maturity is a big issue in the countries we call established as well.”
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