I posted this on LinkedIn yesterday.

“WealthTech Sucks.

That was the title of the very first show on my podcast WealthTech Unwrapped.

We had Paolo Sironi as our first guest. He is probably the most knowledgeable WealthTech guy there is. He made a good case that while it may suck but it’s getting better.

Bambu started in 2016.

That podcast was in 2020.

Today it’s 2023.

WealthTech sucks a lot less today. Doing all we can to make it better every day.”

The thought to post this came from a conversation with one of the most experienced WealthtTech guys I have met. He messaged me to chat. It was so good to listen to him.

“WealthTech sucks for most financial advisors and investors,” he said.

That’s crazy, but it’s true. It is 2023. What are we doing that one of the most important parts of our lives, our wealth, is still substandard when it comes to tech?

Is it really more important we have seamless streaming videos on TikTok, than having a seamless and fully integrated wealth experience that’s across all our financial life?

Seems so.

It is way more fun to watch TikTok (apparently :-)) than plan your wealth. I remember seeing a survey that said a certain percentage of people (I think it was like 30% ) would rather spend an hour with their ex than plan their wealth.

Is it just the tech that sucks? I don’t think so.

Wealth is today, and also 50 years in your future. We, as humans, are really bad at predicting and understanding the effects of today’s actions on our future selves. So we just buy that extra whatever today and figure our 70-year-old retired self won’t know, or would have figured it out by then.

We are DNA-wired to mess it up. How to change that? First, we have to learn to do better. I completely support having wealth planning classes at school. We don’t have it today. We should. No, we must. It’s madness that we don’t.

“Hey, kids. Here is no knowledge of how to handle money. Be off with you.”

“Oh, you messed up?”

“Hmm…”

But I don’t think that’s the only answer. It’s just a part of the answer.

So as I am a smart-ass, and run a WealthTech, here are five rad ideas:

1. Use actual real words when we talk about wealth
If you are reading this newsletter you understand the words ETF, Funds, Stock, Diversification, and Portfolio. 90% of people don’t. Let’s stop with the complexity. Make it real.

2. Technology without borders, but with complete security
Who cares what currency? What bank? What product? Allow people a single interface that does it all. I can’t tell you how far we are away from that. But it is not a tech problem. It’s a bureaucratic problem. If you redesigned the financial system today you wouldn’t build as it is. And no you don’t need blockchain or crypto. We have all the tech we need.

3. Only have fees when people achieve their goals.
People only pay when they achieve their goals. People must play their part. If they promised to save X amount a month, they have to, or we charge them. (Extra rad idea, moderate the spending so people will have X left. It’s not hard to do with the data available).

4. Let’s stop wealthy people from building wealth apps.
Come on. We build things we already know. And what we know doesn’t really work for the masses. Let people who have never seen wealth, reinvent it.

5. Oh and buy Bambu GO.

Let’s Go!

Best,
Ned Phillips
Founder & CEO