Quick Summary: Financial giants, who want to stay ahead of the competition and position themselves as a market leader should leverage the latest technologies and trends in a wealth management software development. It empowers you with real-time portfolio reporting, aids in better investment decisions, financial planning, client management and more. A wealth management software can easily be integrated into a pre-existing financial ecosystem. Its importance is reflected in the statistics presented by the Grand View Research, which predicts the market of a wealth management software globally—“the global wealth management software market is growing at a CAGR of 13.9% from 2023 to 2030 and is projected to reach USD 12.07 billion by 2030”. 

What is Wealth Management Software and why is it important today? 

Wealth management software is a technological solution to simplify your financial assets and investment portfolio. Utilizing a wealth management software allows multinational financial firms and private finance providers like financial advisors and asset managers to effectively manage their client’s portfolios and make better financial decisions. 

Having a fully equipped wealth management system is critical for any financial institution to keep up with the rapidly evolving financial landscape and its complexities. The wealth management software helps you to differentiate your business from the other players by providing- 

• Data driven decision making 
• Personalized client experiences 
• Scalability and cost reduction 
• Efficiency and automation 
• Integration with other fintech tools

Market analysis of wealth management software 

• Assets under management are expected to grow at a CAGR of 5.90% by 2027, translating into a market volume of US $155.10 trillion. 
• There is a rapid increase in the number of high net worth individuals, with the global population expecting to go beyond 17.7 million. HNWIs have a consistent appetite for digital wealth management softwares. 
• There was a rise in the human advisory segment in 2022, accounting for 57% of the global revenue, which again creates a demand for wealth management softwares and their utility. 

Trends in wealth management software 

• Integration of AI, ML and automation for digital wealth management– new technologies like artificial intelligence (AI) and machine learning (ML) have revolutionized the way wealth management software works. These technologies play an important role in personalized portfolio management, wise investment decisions and risk assessment. AI combined with ML is capable of analyzing huge volumes of data effortlessly and identifying intricate patterns to provide managers with accurate predictions and insights. Fintech giant Deloitte predicts that “By 2025, Robo Advisors will manage $16 trillion in assets under management”. 

• Robo Advisors– Robo Advisors are going to shape the future of wealth management software development. They provide automated, algorithm-driven investment services to investors without the need for human intervention. A Robo Advisor studies your financial data, which involves analyzing your current financial situation, and preferred investment options. It then offers a personalized investment plan and suggestions to multifold your accumulated wealth. 

• Embracing ESG as an investment strategy- Environmental, Social and Governance aspects have significantly reshaped the thinking and investment patterns of investors. Investors integrate ESG into their portfolios to minimize tax compliances and show up as sustainable and socially responsible businesses. A world wealth report by Capgemini indicates that “55% of High Net Worth Individuals invest in causes with positive environmental, social, and governance impacts”. 

Integration of GPT AI and the future of digital wealth management technologies 

AI, especially generative AI will change the game and future of digital wealth management technologies. GPT AI can be used to generate personalized investment plans, based on a given portfolio. As the demand to generate a customized investment strategy is increasing, it is likely that integration of AI in wealth management softwares will gain acceptance. 

On the other side—administrative side— the huge volume of clients and multiple communication channels to manage (emails, chats, voice calls, chatbots etc)— is becoming a task involving risks. AI clearly comes to the rescue while extracting the relevant information, monitoring it for compliance and maintaining a database record of everything while minimizing operational risks. Financial Advisors are now free of their administrative burden to give more personalized investor experiences. 

Must have features for wealth management software 

In the competitive world of managing one’s wealth wisely, understanding your client’s needs is the key to success. But in order to achieve client delight, you need to deliver a solution that truly aligns with the needs of fintech companies and finance giants.

A few of the must have features for wealth management software are- 

• A wealth management software must bring automation and efficiency to reduce manual tasks and streamline workflows within an organization. 
• Leverage data analytics to provide personalized investment decisions, and manage risks effectively. 
• It must offer a secured client portal and provide real time portfolio updates to make informed decisions. 
• Accommodate growing client base while giving smart decisions to manage incoming wealth so as to increase profits in long run. 
• The wealth management software must also adhere to complex financial regulations. 

Finding the perfect developer for wealth management software development 

Whether you are a startup, or an established organization seeking tools for financial planning, the key is finding a team which best addresses your needs and empowers you to manage your assets effectively. Choose a financial software development company who is well-versed with the latest trends and technologies in wealth management softwares and willing to leverage advanced technologies like AI and ML to bring your vision into reality!