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The wealth management platform market from human advisory mode segment is slated to observe 55% growth between 2023 and 2032. Due to security concerns, human advisory remains the first choice for many HNWIs around the world. Furthermore, human advisory services assist in strengthening client relationships as well as conveying and communicating wealth management strategies & plans. However, trends are gradually shifting and clients are beginning to prefer the hybrid advisory model over the human advisory model.
Several businesses around the world prefer cloud-based solutions owing to the numerous benefits they provide such as scalability, agility, and easy access to data. The cost-effectiveness and scalability of cloud platforms enable businesses to develop innovative wealth management platforms more efficiently. Financial advisory firms around the world are also focusing on adopting cloud-based solutions to reduce operational costs.
Portfolio, accounting, and trading management solutions segment hold over 25.5% wealth management platform market share in 2022 and is predicted to expand at 10% CAGR during the forecasted time-period. The market is growing as the solution allow trading managers to focus on collaborative activities and better serve their customers at a time when the demand for portfolio management & trading solutions is increasing. Portfolio, accounting, and trading managers are under intense pressure to effectively manage the data of their existing customers. As a result, they are aggressively adopting wealth management solutions. Wealth managers are also using portfolio, accounting, and trading management platforms to manage the financial data of clients and effectively support them in making the most profitable decisions
The investment management firm segment will register a growth rate of 13% through 2032. Several developments, such as digitalization and automation, have resulted in significant changes in the investment management industry over the years. Low yields and increased volatility have pushed portfolio managers to implement sophisticated strategies that have put their existing infrastructure to test. The use of derivatives has increased significantly but most firms are concerned about their ability to handle them. Firms are also being pushed to modernize their processes and replace legacy systems owing to new reporting, clearing & margin requirements
Asia Pacific wealth management platform market will gain remarkable momentum during the forecast timeline. As the adoption of digital platforms increases, the region typically holds promising growth opportunities for robo-advisors. The combination of innovative analytics and advanced algorithms is encouraging tech-savvy customers to use robo-advisor tools to meet their investment needs more efficiently. Furthermore, the growing number of SMEs in emerging economies such as China and India is expected to drive market growth. Furthermore, the adoption of cutting-edge IT infrastructures by SMEs in the region is set to drive the demand for digital financial services and subsequently improve their business capabilities.