Matthew Goldman is a regular contributor to TWIF Signals, the Founder of Totavi, a boutique fintech product & marketing consulting firm, and the publisher of CardsFTW.

Over the past two decades, fintech has transformed the way we access financial services. The early 2000s saw a major shift in consumer finance, particularly in how people gained access to credit and diversified investment products like exchange-traded funds (ETFs). 

Historically, ETFs were primarily available to institutional investors or high-net-worth individuals due to the high costs of entry. However, the rise of fintech platforms like Betterment and Wealthfront allowed everyday consumers to easily invest in ETF portfolios, opening up access to diversified, low-cost investment options. Peer-to-peer (P2P) lending platforms, online banks, and payment solutions like Lending Club and PayPal also changed the landscape by offering consumers—many of whom were previously unbanked or underserved—new avenues to access credit.

Fast forward to the 2020s, and fintech is once again leading the charge, but this time, the focus has shifted from credit to wealth management. A new wave of platforms and tools, such as robo-advisors and fractional shares, are democratizing access to sophisticated investment strategies that were once reserved for high-net-worth individuals. My hypothesis is that over the next 5 years, the phrase “wealthtech” is going to surpass “fintech” in popularity.

Credit as the Gateway