Global Wealth Management Platform Market Extends at a Healthy CAGR of 14% by 2030

Introduction

The wealth management platform is uniquely developed for the planning and monitoring financial services in conjunction with tax and legal advice, estate planning, personal retail banking services, and investment management. Financial institutions are building workflows to ease the lives of their consumers as a result of the expansion of digitalization across multiple industries and their continued focus on automating the system. Utilizing bank channels and other digital platforms, financial service providers are progressively adopting open application programming interface (API) frameworks to offer their financial services alongside third-party solutions.

The APIs allow service providers to access one another's products and services. However, conventional financial advisors are using in-house systems to accommodate investors' various tastes and clients' expanding needs. Wealth management platforms provide numerous advantages, including enriched and streamlined business, increased business process efficiency through system automation, regulatory compliance, services standardization, an Omni channel strategy, and a fantastic user experience.

Market Dynamics

Digitization and Automation Propel the Global Wealth Management Platform Market

Following company policies, the market is adopting digitalization and process automation, both of which hold profit potential. Numerous organizations strive to accelerate digitization, boost operational efficiency, and fortify client interactions. Consequently, several end-use industries will likely accelerate their use of financial consulting and management solutions. Tools for wealth management can aid firms in keeping track of transactions and properly managing their assets.

Technological advances in blockchain and AI will propel market growth throughout the forecast period. The artificial intelligence system monitors the customer's expenditures and gives pertinent recommendations. The blockchain and AI monitor customer expenditures and trends and provide estimates based on this information. The system offers better user assistance and recommendations to manage costs based on these forecasts. In addition, enhanced security and protection for client data enable organizations to sustain consumer relationships, which is expected to be one of the primary drivers driving global market expansion.

Increased Adoption of Robo-Advisors in Wealth Management Creates Umpteen Growth Opportunities

The financial sector always uses cutting-edge technology to provide financial services cost-effectively and efficiently. During the global financial crisis of 2007–2008, when strict regulations were imposed on traditional banks and advancements in the IT sector boosted the incentives for expanding nonbank and technology-based financial firms, these cutting-edge and innovative technologies garnered considerable attention. Mobile payments, ATMs (automated teller machines), and blockchain-based trade finance are a few examples of technological breakthroughs in the finance industry. The technology disruptions in wealth management services include

Robo-advisors and computerized financial advisors are designed to compete with human advisors. Robo-advisors suggest various investment methods for goals such as retirement planning, saving for significant expenses, and maintaining a consistent income to cover bills. Robo-advisory management wealth services have several advantages over traditional services that rely on human advisory, including easy accessibility, affordability, and the ability to provide clients with the option of receiving financial advice and managing their investments whenever they desire from any Internet-connected location. Robo-advisory enables market participants in the wealth management platform sector to offer their services at competitive prices, facilitating their growth in the wealth management platform industry.

Regional Insights

By region, the global wealth management platform market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. 

North America accounts for the largest market share and is estimated to grow at a CAGR of 13.8% during the forecast period. The United States has been a key market for wealth management systems in the North American region as the world's largest economy. Several trends, including the introduction of blockchain, machine learning, natural language processing, digital process automation to eliminate exceptions, and a drive toward digitization, are contributing to the expansion of the studied market in the region.

In addition, customers in the region are moving away from risk-based portfolio construction and towards outcome-based planning across various dimensions (such as investments, banking, health, protection, taxes, and estate). Also, client expectations for virtual interaction, seamless app experiences, omnichannel assistance, and quick payments are expanding at a pace comparable to that of industries outside financial services. These shifting trends are anticipated to boost the market under study.

Europe is estimated to reach an expected value of USD 2.2 billion by 2030, growing at a CAGR of 13.5%. In Europe, various industries have been disrupted by digital technology during the past decade, resulting in the emergence of new business models and the demise of incumbents. In wealth management, technology-driven business models are attracting new clients and assets. Additionally, the region is home to several necessary wealth management platform providers, including Temenos, Finantix, Avalantq, and others, whose fresh investments create new prospects in the region. By partnering with aggregators, numerous small and medium-sized fintech companies rapidly expand their services and customer base.

In addition, the EU's General Data Protection Regulation (GDPR) mandates that businesses take data protection measures and implement extensive record-keeping systems for data storage and management. The revised markets in financial instruments directive (MiFID), introduced in the same year as the GDPR, further strengthens client protection by enhancing product transparency, know-your-customer (KYC), and execution standards anticipated to boost the growth of the studied market in the region.

Key Highlights

• The global wealth management platform market was valued at USD 3.6 billion in 2021. It is estimated to reach USD 10.2 billion by 2030, growing at a CAGR of 14% over the forecast period (2022–2030).
• By deployment type, the global wealth management platform market is segmented into On-premises and Cloud. The Cloud segment accounts for the largest market share and is estimated to grow at a CAGR of 14.5% during the forecast period. 

• By end-user, the global wealth management platform market is segmented into Banks, Trading Firms, Brokerage Firms, Investment Management Firms, and Others. The Banks segment accounts for the largest market share and is estimated to grow at a CAGR of 13.8% during the forecast period. 

Competitive Players

1. Avaloq Group AG
2. Fidelity National Information Services Inc. (FIS)
3. Temenos Headquarters SA
4. Prometeia SpA
5. Backbase Inc.
6. Tata Consultancy Services Limited
7. Fiserv Inc.
8. InvestCloud Inc.
9. EdgeVerve Systems Limited
10. CREALOGIX AG
11. Broadridge Financial Solutions Inc.

Recent Developments

• July 2024 - Leading provider of intelligent data, wealth solutions, and integrated technology, Envestnet, Inc. (NYSE: ENV) ("the Company" or "Envestnet"), announced that it finalized an acquisition agreement with Bain Capital, valued at USD 4.5 billion (USD 63.15 per share).
• July 2024 - Earned Wealth secured USD 200 million in funding for its consultancy services, which specialize in providing financial guidance to physicians regarding both their professional and personal matters. The organization offers a unified platform that enables doctors to get advice from wealth management specialists on several subjects, such as financial planning, tax planning, wealth management, and investment.

Segmentation

1. By Advisory Mode
   1. Human advisory
   2. Robo advisory
   3. Hybrid
2. By Deployment Type
   1. On-premises
   2. Cloud
3. By Business Function
   1. Financial advice management
   2. Portfolio, accounting, and trading management
   3. Performance management
   4. Risk and compliance management
   5. Reporting
   6. Others (billing and benchmarking)
4. By End-user
   1. Banks
   2. Trading Firms
   3. Brokerage Firms
   4. Investment Management Firms
   5. Others