Wealth Management Platform Market size is anticipated to reach USD 10 billion by 2032, as per a recent research report announced by Global Market Insights Inc.
Rapid utilization of digital channels by banks, financial institutions, and fintech to enhance consumer experience will support market growth. Digital information fetched from these channels is used by wealth managers to make investment choices and develop intelligent customer engagement.
The emergence of advanced technologies, such as blockchain and AI, will aid market players to innovate new operating models to provide credit to several businesses and individuals. Customers refraining from the use of digital financial services and their reliance on conventional wealth management techniques are likely to restrict industry expansion. Lack of awareness regarding appropriate tools and wealth management platforms is another factor that may impact the wealth management platform market.
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Demand for dedicated data analysis tools
The human advisory segment accounted for over 60% of the market share in 2022. Mounting security concerns in the wealth management industry is enabling high-net-worth individuals (HNWIs) to shift toward human advisory services. This advisory model involves the use of dedicated data analysis tools that consider various financial credentials of the clients and provide analyzed results.
Mounting need for cloud-based wealth management solutions
In terms of deployment model, the cloud segment is poised to grow at a 15% CAGR between 2023 and 2032. Cloud-based wealth management solutions are increasingly becoming popular among finance-based firms. It provides a simpler setup, the flexibility needed for remote work, and a lesser investment in infrastructure. Cloud-based computing also allows wealth management professionals to work from any device and OS. Companies are able to create cutting-edge wealth management solutions using cloud platforms as it provides scalability and affordability.
Browse key industry insights spread across 270 pages with 280 market data tables and 30 figures & charts from the report, “Wealth Management Platform Market Size By Advisory Mode (Human Advisory, Robo Advisory, Hybrid), By Deployment Model (On-premise, Cloud), By Application (Financial Advice & Management, Portfolio, Accounting, & Trading Management, Performance Management, Risk & Compliance Management, Reporting), By End-use (Banking, Investment Management Firms, Trading & Exchange Firms, Brokerage Firms), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032” in detail along with the table of contents:
Requirement for effective risk management strategies
The risk & compliance management applications is expected to record gains at nearly 10% from 2023 to 2032. The need for effective risk management strategies that can integrate operational, IT, compliance, ESG practices, and third-party providers is considerably high in the business sector. It is projected that the implementation of Know Your Customer (KYC) and Know Your Product (KYP) compliance procedures, as well as the anti-fraud and Anti-Money Laundering (AML) system, would assist the market expansion.
High popularity of wealth management platforms across the banking sector
The banking end-use segment held approximately 30% of the wealth management platform market revenue share in 2022. Wealth management platforms are becoming popular as a result of the demand for enhanced customer experience and personalized service for high-net-worth professionals. These platforms provide financial firms with data-driven analytics and the latest integrated tools that are needed to empower their advisors to offer smart solutions. Wealth management platforms also enable advisors to better understand the needs of clients and recommend appropriate portfolio allocations.
Adoption of advanced investment solutions across Europe
Europe wealth management platform market will capture 20% of the revenue share in 2032. The incorporation of Environmental, Social, and Governance (ESG) frameworks into investment strategies by wealth managers should assist this growth. Banks, wealth managers, and other financial institutions across the region are adopting wealth management platforms as the demand for AI-enabled investment solutions.
Strategic expansion efforts to define competitive landscape
SS&C Technologies Holdings, Inc., Avaloq, Fiserv, Inc., Broadridge, FIS Global, Prometeia, and InvestCloud are some of the leading companies in the global wealth management platform market. These companies are focusing on innovative techniques to expand production capacity.
To cite an instance, in September 2022, iCapital1 and Ares Wealth Management Solutions (AWMS) expanded their partnership to offer registered independent advisors and financial advisors with greater access to a wider range of alternative investment solutions as well as a full suite of tools to assist them in creating client portfolios.