Last Updated on July 19, 2024 by Team Experts
Wealth management companies have been leveraging technology to improve efficiency and customer service for years. With a recent rise in competition from start-up and legacy firms, the need for innovation has increased to maintain market share.
Many trends will shape the future of wealthtech management, with artificial intelligence (AI) and machine learning (ML) at the forefront. In this article, we’ll examine some trends shaping how we manage our money in the digital age.
Significant Statistics in Wealth Management Sector
An intelligence report reveals that the wealth management software development market valued at US$3.6 billion in 2021. It is projected to grow a value of US$8.15 billion by 2027.
Wealthtech management software is accounted for a compound annual growth rate (CAGR) of 14 points or about 56% over the period from 2022 to 2027. With this huge market, the wealthtech market remains to grow in the future.
The wealth management market share was valued at US$1.25 trillion in 2020. Wealthtech industry projects to grow by US$43 trillion by 2030 and will grow to a CAGR of 10.7% from 2021 to 2030.
Robo advisors, quasi-banks, and other fintech solutions are predicted to have the largest growth compared to other wealth management solutions in years to come. In 2021, the use of financial technology for wealth management it’s about 8% but expected to grow more than 14% by 2022. The highest usage of wealth management comes from fund managers.
Top Trends in Wealth Management in the Global Scene
Wealthtech is a sub-category of fintech that combines the wealth management industry and digital technology in how people manage and control their funds in a wealth management software solution. Developers are implementing advanced technologies to create digital wealth management software solutions like artificial intelligence (AI), machine learning (ML), blockchain, cloud computing, and other wealthtech software development tools.
With the changing technology in the fintech industry, there are top trends a wealth manager or advisor should be aware of. These are the following:
1. Robo-advisors
2. Micro-investing
3. Cryptocurrencies and NFT
4. Robo-retirement
5. Digital Brokers
6. B2B and P2B Investing
7. ESG Investing
8. Adoption of Wealth Management Solution Tools
Read more: What Should You Consider When Getting a Financial Advisor?
