Wealth Management Platform Market is Segmented By Advisory Model (Human Advisory, Robo advisory, Hybrid), By Business Function (Financial advice management, Portfolio, accounting, and trading management, Performance management, Risk and compliance management, Reporting, Others), By Deployment Model (Cloud, On-premises), By End-User (Banks, Investment management firms, Trading and exchange firms, Brokerage firms, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Market Overview
The Global Wealth Management Platform Market is expected to reach at a high CAGR during the forecast period 2024-2031
A wealth management platform is a front-to-mid program that combines all functions into a single system with a high level of usability. It provides a solution for all advisory network needs by offering an effective advisory network with great client involvement while maintaining regulatory compliance. An extensive range of digital channels, such as tablets, smartphones, and browsers, are supported by sophisticated wealth management platforms. It facilitates cross-channel encounters that decrease friction between financial institutions' consumers and financial advisors, resulting in more efficient operations. Further, several platforms include AI components like machine learning, natural language processing, and digital process automation to eliminate exceptions and make the onboarding process paperless.
Market Summary
| Metrics | Details |
| Market CAGR | High |
| Segments Covered | By Advisory Model, By Business Function, By Deployment Model, By End-User, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other vital insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Source: DataM Intelligence Analysis (2023)
Market Dynamics
The growing adoption of paperless and automation for better finances drive the global wealth management platform market. However, preliminary technical skills resulting in less familiarity with wealth management solutions are expected to impede the market.
The growing adoption of paperless and automation for better finances
For many broker-dealers and RIAs, moving to a paperless workplace is a long-term aim. Most businesses have embraced paperless processes, but few have fully implemented a paperless office approach. For instance, using the platform reduces the use of paper and auxiliary applications during the advice process. It results in immediate cost savings on office supplies, system maintenance, and support fees for applications that the new system replaces. The average cost reduction amount for each bank is 10%.
Wealth management organizations can use digital document services to make it easier for advisers to open accounts and onboard new clients. It can import client data from CRMs and other paperless document systems. The information is then automatically populated in all relevant fields, significantly decreasing the amount of human labor required of advisers.
Therefore, the growing demand and adoption have resulted in companies investing in the business. For instance, in February 2023, Savvy, a next-generation wealth management firm that supercharges wealth managers with upgraded software, sales, and marketing automation, and back-office servicing, raised US$ 7.3 million in seed funding from Thrive Capital and Index Ventures.
Preliminary technical skills resulting in less familiarity with wealth management solutions
One of the most significant drawbacks is that the wealth management platform market faces considerable hurdles due to a lack of knowledge of wealth management solutions and technical skills among company experts. In addition, the cost of asset management services is another restraint for the market. There may be various wealth management fees, which might eat into your profits. Therefore, prospective clients should acquire complete estimates detailing all related expenses before signing up for an asset management service.
COVID-19 Impact on Market
COVID-19 hurt the wealth management platform market. The global economy was shaken by the virus's rapid spread, owing to the closure of factories and businesses due to social distancing measures. The unexpected circumstances impacted both investors and wealth management organizations. Given the initial market declines and historically high levels of volatility, investors noticed direct effects on their portfolios. Transactional revenues increased as trading volumes increased, while total net interest income and fees connected to assets under management (AUM) decreased with market performance.
Market Segmentation Analysis
Based on end-user, the global wealth management platform market is segmented into banks, investment management firms, trading and exchange firms, brokerage firms, and others.
Investment management is the process of experts managing financial assets and investments on behalf of clients, usually through strategies and executing trades within a portfolio due to technological improvements such as automation and digitalization. Portfolio managers have been compelled to employ sophisticated strategies such as wealth management platforms due to low yields and greater volatility.
Further, global regulation has become much more prevalent on the buy side, posing operational and compliance issues for investment managers. Therefore, firms are being pushed to modify their procedures and replace conventional technology. The issues drive asset management organizations to use wealth management platforms and related solutions.
Moreover, fintech businesses are introducing wealth management platforms that deliver wealth managers the insights and data they need to understand and service the needs of different customers. For example, Fidelity National Information Services Inc. introduced FIS Unity in 2020, an open application programming interface (API) to help wealth managers get a complete, integrated view of a client's financial assets across several financial providers.
Besides, several startups are receiving large sums of money to develop investment management solutions. For instance, Vise, an AI-powered investment management platform allowing advising firms to design and manage portfolios, announced the closing of its US$ 45 million Series B funding round in 2020, increasing Vise's total capital raised since its establishment to over US$ 60 million.
Market Geographical Share
Based on geography, the global wealth management platform market is segmented into North America, Europe, South America, Asia-Pacific, and Middle East & Africa.
North America is likely to hold a major market during the forecast period, owing to the early acceptance of new technologies and expanding data. The U.S. is one of the world's largest economies and a major market for wealth management systems. Several trends are assisting the expansion of the analyzed market in the region, including the introduction of blockchain, natural language processing, machine learning, and digital process automation to eliminate exceptions, and a drive toward digitalization.
Wealth management solutions are becoming increasingly important in acquiring and maintaining profitable retail consumers. For example, rich mass customers account for a considerable portion of retail banks' net profits. Their partnership with a wealth management service provider is supposed to be their most important financial relationship.
For instance, in July 2020, Apex Clearing, based in New York, established a new strategic relationship with Marstone, a digital wealth management platform. The company will assist investment management firms, insurance companies, and organizations with big financial services operations which confront a need from their clients for digital experiences and capabilities.
Source: DataM Intelligence Analysis (2023)
Companies and Competitive Landscape
The global wealth management platform market is competitive and moderately consolidated with multinational and local brands. Major companies include SS&C Technologies, Inc., Fidelity National Information Services, Fiserv, Inc., Profile Software, Broadridge Financial Solutions, Inc., InvestEdge, Inc., Temenos Group AG, InvestCloud, Inc., SEI Investments Company, and Comarch SA, among others. Further, product development, technological advancement, acquisition, merger, and collaboration are the primary growth methods these companies use to improve their geographical presence to address the growing demand for wealth management platforms.
Fiserv, Inc.
Overview: Fiserv, Inc. is a U.S.-based global company that provides financial services, technology, and payment solutions. The company provides products and solutions in the following categories: Payments, Processing Services, Customer & Channel Management, Risk & Compliance, and Insights & Optimization.
Product Portfolio: Fiserv, Inc. offers a unified wealth platform that combines front, middle, and back-office wealth management technology into a single platform that large enterprises with multiple business lines, functions, and users can utilize.
Key Development:
- In December 2019, Fiserv, Inc. and Motive Partners, a private equity firm focused on technology-enabled financial services companies, reached an agreement under which Motive Partners-led investors would purchase up to 60% of Fiserv's Investment Services business.
Why Purchase the Report?
- To visualize the global wealth management platform market segmentation by advisory model, business function, deployment model, end-user, and region and understand key commercial assets and players.
- Identify commercial opportunities in the global wealth management platform market by analyzing trends and co-development.
- Excel data sheet with numerous data points of wealth management platform market-level with four segments.
- PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
- Product mapping available in excel consists of critical products of all the major market players
The global wealth management platform market report would provide approximately 69 tables, 66 figures, and almost 208 pages.
Target Audience 2024
- Service Providers/ Buyers
- Industry Investors/Investment Bankers
- IT Companies
- Research Professionals
- Software Business
