Most people want to leave something behind for their children and grandchildren – something more than memories. Generational wealth isn’t just about having money to pass down; it’s about creating a financial system within the family that allows future generations to thrive. And in today’s world, smart legacy planning is being reshaped by a powerful tool: embedded finance. Here’s how companies can take advantage and offer customers a worthwhile investment.

Automate wealth growth
One of the biggest challenges in building generational wealth is consistency. Life gets busy, and financial planning often takes a backseat. Embedded finance tools, such as automated investing platforms and AI-driven savings accounts, remove the guesswork. Users can set up recurring contributions to a diversified portfolio that aligns with their long-term goals, ensuring wealth accumulation without constant manual intervention.

For example, micro-investing apps allow family members to invest spare change automatically, turning everyday transactions into wealth-building opportunities. Moneybox has taken the initiative and widened the opportunity for spare money to convert into big wins with features such as Junior ISAs that enable parents to grow their children’s money from the moment they are born.

Make wealth transfer seamless
Traditional estate planning can be complex and time-consuming, often leading to disputes or delays in asset distribution. With embedded finance, digital tools can simplify the process and make family conflicts a thing of the past. Smart contracts powered by blockchain technology can ensure that wealth is transferred to the right beneficiaries automatically, without the need for extensive legal processes.

For instance, programmable trusts can distribute funds based on specific conditions, such as reaching a certain age or achieving a milestone . This ensures that the next generation receives wealth responsibly and at the right time.

ADAPT is a notable company that has put this into action. It is a cloud-based platform that enables estate planning professionals to efficiently gather client information and generate custom legal documents. ADAPT offers dynamic interviews and customisable questionnaires, facilitating the creation of wills, trusts, and other essential estate planning document

Teach financial literacy through everyday transactions
The biggest reason generational wealth often doesn’t last past the third generation isn’t a lack of money – it is a lack of financial knowledge. Embedded finance can help solve this by integrating financial education into daily life.

For example, family banking apps can allow parents to set up digital allowances for their children, where they earn money through chores and learn budgeting skills in real time. Some apps even offer investing features that allow children to see how small investments grow over time, fostering a long-term mindset about money.

Protect assets with smart insurance and fraud prevention
It is important to emphasise that wealth protection is just as crucial as wealth creation. Embedded finance tools offer automated insurance solutions that protect assets without the hassle of paperwork or annual renewals. For example, AI-driven insurance policies can adjust coverage dynamically based on real-time needs, ensuring that family assets – whether properties, businesses, or investment accounts – are always protected.

Additionally, embedded fraud prevention technology can help secure accounts from unauthorised access, ensuring that family wealth is safeguarded from cyber threats and financial scams.

Create passive income streams with embedded payments
Passive income has become a hot topic, and it can be brought to the next level. Embedded finance makes it easier than ever to create revenue streams that can benefit future generations. Whether it’s real estate crowdfunding platforms, dividend-paying stocks, or peer-to-peer lending, financial tools are now integrated into apps that allow families to generate wealth without heavy lifting.

For example, platforms that offer embedded rental management solutions can help families own and manage property with minimal effort. Rent payments can be automatically collected and reinvested into other assets, creating a self-sustaining financial ecosystem.

The future of wealth is embedded
The beauty of embedded finance is that it removes many of the barriers that once made wealth management a daunting task. It automates the process, making it easier to build, protect, and pass down wealth in a way that is both seamless and intelligent.

By integrating these smart financial tools into your legacy planning, you’re not just leaving behind money – you’re leaving behind a financial system that ensures families thrive for generations. The key is to start early, embrace technology, and make financial literacy a core part of your offerings. With embedded finance, building a lasting legacy isn’t just for the ultra-wealthy; it’s for anyone willing to take a smarter approach to managing their money.

The future of wealth isn’t just about what you have – it’s about how well it works for you and the generations to come.

About the author

Philipp Buschmann is a serial entrepreneur with extensive experience of working in challenger banking, financial services, IT and energy across the world. Buschmann holds an MBA from the London Business School. He is passionate about entrepreneurship and loves exchanging ideas, insights and discussing FinTech's future. He is a speaker at fintech events.