The news: Wealthtech funding for 2025 is set to double last year’s figure and has already hit $4.2 billion as of September, according to a CB Insights report. And based on year-over-year hiring, three of the top five fastest-growing fintech segments fall under wealthtech.

Companies at the top of the Q3 funding list included iCapital (an alternative asset platform, Midas (cryptocurrency investing), Yieldstreet (investments in private markets), and

Savvy Wealth (financial advisory and dashboard).

More on this: Wealthtechs have become serious competitors to wealth managers, brokerage firms, and banks that offer wealth management services. Wealthfront, Betterment, and SoFi are major players, and there’s a long list of fintechs that serve customers, aid advisors, or provide infrastructure. Incumbents are joining the race too; JPMorgan Chase is one megabank that has invested in and acquired companies in the wealthtech space.

Our take: In our September 2025 report “Winning the Great Wealth Transfer in Wealth Management,” we noted that banks face three key considerations in competing against wealth techs:

• How to blend self-service and human connection: Recipients of the great wealth transfer will want to manage their funds digitally, but they’ll still need access to a human advisor for nuanced guidance and help with complex tasks. Banks must be prepared to offer a hybrid model that combines digital wealth management tools with high-touch services.
• How to personalize services: Banks need to deliver intuitive, personalized digital experiences, like tailored wealth recommendations and portfolio insights. But they also must tread carefully, as trust can be damaged by poorly performing digital services or AI tools that misrepresent information.
• What investment vehicles to offer: Younger investors are less likely to trust traditional assets and more open to private credit, crypto, and other alternatives than older generations. To stay relevant among wealth-transfer recipients, banks must expand their investment products.