Wealth app developers sharpen both tone and content for better ‘conversations’ with the next generation of consumers: 2022 Digital Wealth Report

From

Dr Irene Guiamatsia

Leading research firm Investment Trends has released its latest 2022 Digital Wealth Report, a review of the latest developments in digital technology used to deliver wealth services to Australian retail consumers.

A comparative analysis of 866 digital wealth applications (apps) and services, the report recorded a surge in the usage of digital wealth applications by Australian retail consumers in recent years, enabled in part by factors such as mobile adoption and open banking.

“Consumer adoption of digital wealth applications had been building up as mobile adoption reached saturation levels and open banking regulations came to pass,” according to Irene Guiamatsia, Head of Research at Investment Trends. “The past three years have seen this trend accelerate with no less than 866 digital wealth apps considered in this latest study.”

The research has found that platforms are all striving to support the next generation of Australians, with those aged 15 to 35 years of primary focus. Wealth content is being repurposed to cater for this new cohort across money management, investing and trading, in a bid to provide a more holistic personal finance experience.

“The best performing platforms tend to be those with a clearly defined target audience, with Zoomers and Millennials the priority age segments,” noted Guiamatsia. “Apps are offering a range of features such as account transaction aggregation, spending insights, credit scores, service switching recommendations, debt consolidation and online communities to reach these end users.”

The study revealed that digital wealth apps have continued to evolve towards greater personalisation while granting more control to consumers. These developments in user engagement are enabled by the ability, through open banking, to aggregate transactional data from banks to third-party aggregators and service providers.

“New-age apps have had success in leveraging users’ activity for a uniquely powerful and personalised experience, and therefore more prolonged and in-depth digital conversations with users,” said Guiamatsia.

“This report highlights the great challenge wealth service providers, established or emerging, face in creating meaningful engagement with the next generation of investors and wealth builders.”

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