Channel

Wealthtech & Insurtech

How apps are changing the way people invest and buy insurance, and which rules still protect you when the interface is new.

This channel explains wealthtech (technology for investing and saving) and insurtech (technology in insurance) for complete beginners: robo-advisors, fractional shares, how commission-free trading is paid for, embedded insurance, and the custody and compensation rules that protect investors.

Start here: read these first

A hand holding a phone that shows a folder of investing apps — Photo: “Trading apps on an iPhone screen” by forextime.com, CC BY 2.0 (edited)

Wealthtech

What is a robo-advisor and how does it manage your money?

A robo-advisor asks you a few questions, picks a mix of investments and keeps that mix on track automatically. Here is what happens behind the screen, and what it cannot do.

8 min read

The curved glass headquarters of the US Securities and Exchange Commission in Washington, DC — Photo: “United States Securities and Exchange Commission (SEC) (55266859043)” by ajay_suresh, CC BY 4.0 (edited)

Wealthtech

How does investor protection work, and what does it not cover?

Investor protection is not one safety net but several layers: rules on how firms treat you, rules on where your assets are kept, and compensation if a firm fails. None of them protects you from prices falling.

7 min read

A 1908 fire insurance policy with an eagle letterhead — Photo: “1908-08-01 Londoner Phönix Feuer-Assecuranz-Societät Police 45396 Agentur-Direktion Kranichfeld, Leipzig” by Lithografie im Auftrag der Londoner Phönix Feuer-Assecuranz-Societät, Public Domain Mark 1.0 (edited)

Wealthtech

What is insurtech and how is it changing insurance?

Insurance is one of the oldest financial products. Insurtech is what happens when apps, sensors and data models are added to it, from photo-based claims to car insurance priced on how you drive.

6 min read

More in Wealthtech & Insurtech

7 explainers & comparisons

Key terms ↓

WealthtechExplainer

What is embedded insurance and is it good value?

Buy a phone, a flight or a car on finance and you are often offered insurance in the same click. That is embedded insurance: convenient, but regulators have found it can be poor value.

Photo: “Travel insurance vending machines at Haneda Airport Terminal 3” by Momiji.Takinogawa, CC BY-SA 4.0 (edited)

WealthtechExplainer

What are fractional shares and how do they work?

Fractional shares let you invest $10 in a company whose single share costs hundreds of dollars. The idea is simple; the small print about transfers, voting and order timing is where beginners get caught out.

Photo: “Two pizza slices” by Douglas Perkins, CC0 1.0 (edited)

WealthtechExplainer

What is payment for order flow and why does it matter?

If your trading app charges no commission, someone else may be paying your broker for your orders. That arrangement is called payment for order flow, and regulators on each side of the Atlantic treat it very differently.

Photo: “Frankfurt Stock Exchange (Ank Kumar) 02” by Ank Kumar, CC BY-SA 4.0 (edited)

WealthtechComparison

Robo-advisor vs financial advisor: what is the real difference?

One is software, the other is a person, but the bigger differences are in the scope of advice, the legal duty behind it and how the fee is charged. Here is a side-by-side comparison without the sales pitch.

Photo: “Braccio robotico con Arduino 01” by Nicolò Bertuccioli, CC BY-SA 4.0 (edited)

Key terms in Wealthtech & Insurtech

Glossary

What is a custodian in investing?

The institution that keeps your investments safe, separate from the firm that manages them.

Photo: “Cleveland FRB Vault Door - brightened” by Spamguy at English Wikipedia, CC BY 2.5 (edited)

Glossary

What is a robo-advisor?

Investment management run by software instead of a person.

Photo: “Robot Arm (NIH BioArt 457)” by Courtesy of NIAID Ryan Kissinger, Public Domain Mark 1.0 (edited)

About this channel

#What this channel covers

Investing used to start with a broker's office and a minimum balance. Today it can start with a phone and ten dollars. Wealthtech is the technology behind that change: robo-advisors that manage a portfolio from a questionnaire, fractional shares that let you own a slice of an expensive stock, and trading apps that charge no commission. Insurtech does the same for insurance, from app-based claims to cover offered at checkout. The US insurance regulators' association describes insurtech as new technologies that make buying, using and understanding insurance easier, faster and more personalised⁠^[1].

#Why the rules behind the app matter

A new interface does not change the old risks. Investments can fall in value, and insurance only pays for what the policy covers. What protects you is the regulated firm behind the app and the rules it follows. In the US, robo-advisers are typically registered investment advisers subject to the fiduciary obligations of the Advisers Act⁠^[2]. If a member brokerage fails, SIPC protection is limited to $500,000, including $250,000 for cash, and it does not cover a fall in the value of your securities⁠^[3]. Our guide to how investor protection works explains each layer, and payment for order flow explained shows how 'free' trading is paid for.

#How to use these guides

Every number, date and rule on these pages links to a regulator, statute, supervisor or official scheme, and every worked example is calculated with code. Nothing here recommends a particular app, fund or insurer, and nothing here is personal financial advice. If you are new, read the three guides in the 'Start here' list in order, and use the glossary entries for robo-advisor and custodian when a word is unfamiliar. Insurance readers can start with what is insurtech? and then embedded insurance. Wealthtech also connects to the rest of fintech: compare investor protection with deposit insurance, and see how embedded insurance mirrors embedded finance.

Sources for this introduction (3)

Sources

Insurtech (Insurance Topics) — National Association of Insurance Commissioners, 2026 Primary
IM Guidance Update No. 2017-02: Robo-Advisers — US Securities and Exchange Commission, Division of Investment Management, 2017 Primary
What SIPC Protects — Securities Investor Protection Corporation, 2026 Primary

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