March 1, 2024

| Source: ReportLinker ReportLinker
New York, June 13, 2022 (GLOBE NEWSWIRE) — announces the release of the report “Wealth Management Platform Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” –

Key Highlights
The robust wealth management platforms offer support to a broad range of digital channels, such as smartphones, tablets, and browsers. This support enables cross-channel experiences which reduce friction between the customers of a financial institution and the financial advisors, resulting in more efficient operations. Also, the trading and investment management fees are dipping to zero while firms wrestle with decreasing margins. This has led a requirement for digitizing operations and finding efficiencies elsewhere.
Customer-centric business priorities, such as fully-digitized client onboarding, goal-based financial planning, and secure, real-time collaboration between the client and the financial advisor, thus, making the wealth management platforms to stand out. Some of the platforms offer AI components such as machine learning, natural language processing, and digital process automation to reduce exceptions, making the onboarding process paperless and frictionless.
As multiple investors seek advice for withstanding the current uncertainty in the investment scenario, fintech companies are launching wealth management platforms that give wealth managers the insights and data they require to understand and serve the needs of multiple clients. For instance, in mid-2020, Fidelity National Information Services Inc. launched FIS Unity, an open Application Programming Interfaces (APIs) to assist wealth managers with a complete, integrated view of a client’s financial assets across several financial providers.
Financial institutions have been viewing wealth management as an integrated set of products: cash management, asset management, protection, credit, retirement and estate planning, and tax planning. While a product-centric approach to wealth management is sensible in some respects (because products drive profit), this approach fails to address a large portion of clients’ needs.
This is a primary reason to integrate various business capabilities for wealth management products, are roughly equivalent regardless of who offers them. Clients are less interested in product specifics, assuming that they meet certain basic requirements than in the service elements surrounding the products.
One significant challenge for potential entrants is expensive property prices for setting up branch locations. The wealth management model is based on a high-touch client relationship, and, therefore, establishing a physical presence is critical.
Overall, the global COVID-19 pandemic has not fundamentally altered the industry’s strategic imperatives, but strives to further accelerate the difference between winning wealth managers; that explore innovative edge business models, increase their operational agility and engage digitally with their clients and other firms with a more reactive approach that may struggle increasingly in a wealth management industry that is bound to be even more competitive in a ‘’next to normal’’.

Key Market Trends

Investment Management Firms to Drive the Market Growth

Investment management is the handling of financial assets and other investments by professionals for clients, generally by utilizing strategies and executing trades within a portfolio. The investment management industry has significantly changed over the years owing to several advancements, such as digitalization and automation. Low yields and increased volatility have considerably driven portfolio managers to implement sophisticated strategies that are straining their existing infrastructure. The use of derivatives has increased significantly, but most firms have concerns about their ability to handle them.
In addition, global regulation has become much more pervasive on the buy side, resulting in the creation of operational and compliance challenges for investment managers. New rules related to reporting, clearing, and margin requirements are pushing firms to revamp their processes and replace legacy systems. All these factors are driving investment management firms to utilize wealth management solutions.
Multiple wealth management platforms in the market have a command center that provides users with real-time portfolio insights as well as the ability to act immediately. The workstation manages all position and risk data, which ensures that investment managers are working with up-to-date and accurate information.
For instance, Calypso’s (provider of front-to-back trade processing technology for both derivatives and cash instruments) investment management solution integrates with its multi-asset trading and collateral management platform. And the company’s collateral optimization solution provides a single data repository for real-time views of all available and pledged securities coupled with existing margin calls.
Multiple startups are receiving significant funding for the development of investment management platforms. For instance, in December 2020, Vise, an AI-powered investment management platform for advisory practices to build and manage portfolios, announced the close of its USD 45 million Series B funding round, bringing the total capital raised since Vise’s founding to over USD 60 million.

North America is Expected to Hold a Significant Market Share

The United States represents the largest economy globally and has been a significant market for wealth management platforms in the North American region. Several trends, including the advent of Blockchain, machine learning, natural language processing, digital process automation to reduce exceptions, and a push toward digitalization, are aiding the growth of the studied market in the region.
Wealth Management offerings in the North American region are becoming essential to attract and retain profitable retail customers. For instance, affluent mass customers in the region represent a significant part of the net income generated by retail banks. It is expected that their relationship with a provider of wealth management services is their most important financial relationship. As a result, many diversified financial services firms in the region expand on their wealth management businesses.
The industry in the region is in the midst of significant change where a new generation of investors, whose expectations and preferences have been shaped by new technologies and by their living through the last financial crisis, have brought new standards to the industry in terms of how investment products are being delivered.
In Jan 2020, Pascal Financial, an emerging fintech company with Canada’s only fully integrated, AI-powered digital wealth management platform, announced that it had integrated its digital wealth platform with Sterling Mutuals, one of Canada’s premier independent mutual fund dealers with over USD 4 billion in assets under administration and almost 300 advisors and support staff. Pascal will be working with Sterling’s advisors to promote the digital tools they need to thrive in a time of disruption.
Moreover, in Jul 2020, New York-based Apex Clearing announced a new integration with Marstone, a digital wealth management platform, via a strategic partnership. According to Apex, the business will benefit investment management firms, insurance companies, and organizations with large financial services practices and those expanding into the financial services, who face a demand for digital experiences and capabilities from their clients.

Competitive Landscape

The intensity of competitive rivalry is high, and the emergence of new software providers is growing globally. Particularly in emerging markets such as India, for instance, multiple start-ups have emerged in the domain, giving market incumbents a considerate amount of competition. The nature of the market studied makes it crucial for new market players to constantly keep track of the technological advancements, regulatory dynamics to maintain compliance while offering upgraded functionalities to the end-users.

December 2021 – Temenos Headquarters SA announced its expansion of the strategic relationship with Microsoft to meet the increasing demand from banks for SaaS and banking services delivered by Temenos Banking Cloud. This Collaboration with Microsoft is to develop financial services in the cloud to drive scalability, operational efficiency, and innovation.
July 2021 – Cincinnati, Ohio-based Fifth Third Bank chosen financial technology leader FIS to replace its legacy deposit and trust servicing systems with FIS next-generation platforms. The bank will replace its legacy, in-house advanced core banking system with the next-generation FIS Modern Banking Platform.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support
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