Will new wealth management solution for digital wallets lead to DIY investing surge?

The growing use of digital wallets for payments driven by the likes of Apple Pay, PayPal, and Venmo, creates an opportunity for these firms to expand their service offering – and a new solution wants to fuel it.

While most people who use these digital wallet companies will be used to tapping their phone on a point-of-sale terminal to make a payment, they will soon also be able to use the same app for wealth management and self-directed investing.

FusionIQ has today (Oct. 29) announced the launch of a solution for wallet companies that aims to bridge the gap between payments and wealth management, building on the firm’s range of cloud-based solutions for wealth management firms.

Called FIQ Wallet, the new solution enables wallet companies, including those that are used for payroll for 1099 employees, to offer new capabilities such as goals-based digital advice and self-directed investing.

“We are excited to launch FIQ Wallet as the next evolution in digital wealth management,” said Eric Noll, the recently appointed CEO of FusionIQ. “This product aligns with FusionIQ's mission to democratize wealth management by providing wallet users with access to investment services directly within their wallets. The solution is powered by the award-winning FusionIQ One platform, known for its multi-custodian, multi-asset class, and multilingual capabilities. By offering wealth management capabilities in real-time, wallet companies can increase user engagement and build lasting loyalty.”

The use of digital wallets by consumers is one of the fastest-growing areas of financial services and a report from JD Power in March revealed that 48% of US consumers said they had used a digital wallet in the 90 days before they were surveyed. Satisfaction also increased year-over-year to 664 on a 1,000 point scale. A Capital One report showed even greater usage with 65% of respondents having used a digital wallet in the month leading up to the poll.

The JD Power report also highlighted the potential for increased competition among wallet providers, and FusionIQ will be hoping that being able to offer wealth management and DIY investing will be a differentiator for some.

The digital wallet market is huge with $9 trillion in transactions made in 2023 according to Capital One and their use for point-of-sale purchases outstripping any other single form of payment.

FIQ Wallet promises fast onboarding, a unified investing experience, intelligent goals-based investing, and modern trading solutions, all with strong security.

John Kimbro, the firm’s chief technology officer who led the development of FIQ Wallet believes it will be a disruptor.

“This solution is easy to implement and can be fully integrated into wallet platforms in as little as six weeks,” he said. “Wallet providers can offer their users a unified view of their digital finances, with sophisticated tools for goals-based investing, risk management, and more. This product is a game changer for wallet companies, and we're proud to be the first to deliver this capability to the market.”

Earlier this year, the wealth tech provider launched FIQ Market One aiming to democratize access to a wide range of investment options through an integrated solution for advisors and investors.