Financial advisors who have been involved in streamlining economic processes use wealth management software systems. It is an investment advisory service that looks after the requirements of wealthy investors. Financial advisors use this advice-giving process (wealth management system) to gather information about their clients' needs. According to salesforce.com, inc., new technologies are changing the way wealth managers operate. Technology enables wealth managers to address these needs, with customer relationship management (CRM)-based wealth management software providing the most benefit.

Market Driver

What's ahead for Artificial Intelligence (AI) global wealth management software market?

As technology advances and becomes more important differentiators, competition between non-traditional and traditional firms will improve. As it learns from client financial data (portfolio allocations, account statements, fees, financial planning, interactions, and so on), AI will provide applications for providing personalized solutions. Furthermore, predictive analysis will use a massive amount of data related to investments, sentiments, and emotions to forecast the future state using machine learning and artificial intelligence. For example, Chase Manhattan deployed predictive analysis across the retail financial consumer’s data and identified the customers that are most likely to refinance their mortgage. This provides a greater proposition to the client with attractive interest rates. Additionally, machine learning and artificial intelligence can help predict the future high net worth individuals (HNWIs) among the small retail clients as well as offer personalized solutions to individual prospects by assisting them by engaging in a strategic manner. Thus, AI applications could preferably increase wealth management efficiency and business opportunities in the years to come.

What’s new in wealth management software market?

Bank launches new wealth management robot-advisor.

Customers' interactions with financial service providers are growing significantly right now. To stay ahead of the competition, the client intends to launch a new robot-advice platform for its retail client in order to serve more customers online and increase human advisor productivity. A robot-advisor is a digital financial advisor powered by artificial intelligence and automation. It asks a customer a series of questions about their finances, investment experience, and risk tolerance. Furthermore, it offers solutions in the form of recommendations for a personalized investment portfolio comprised of stocks, bonds, and other asset types. The bank will use an agile approach to design, build, and test a robot-advisor that will serve as a viable product for the bank's growing client base. In the coming years, it will be further tested in the global market, where customers will be able to access the online service 24 hours a day, seven days a week, and complete the questionnaire within the time frame specified.

Changing investor demographics, new industry players, and rise of digital platform has positive influence on the global wealth management software market

To meet the demands of changing investor demographics, the wealth management industry is currently undergoing transformation. Stakeholders must continue to collaborate to adopt across the wealth management industry, beginning with the way firms engage with clients, offering varying types of advice and service models, to the application of different regulations on firms. According to the IIROC and Accenture report titled "Enabling the Evolution of Advice in Canada," firms are undergoing significant transformation in response to the demands of millennial, a powerful emerging investor segment. Furthermore, Canadian investors are more educated and confident than ever before, and by incorporating a rich digital platform, clients experience the same level of satisfaction from digital experiences from financial service providers as they do from traditional service providers.

Market Segmentation

The global wealth management software market is segmented as an advisory model, business function, deployment model, size of organization, and end-user. By advisory model, the market is segmented as human advisory, robot advisory, and hybrid. By business function, the market is segmented as financial advice management, portfolio, accounting, and trading management, performance management, risk and compliance management, reporting, and others (billing and benchmarking). By deployment model, the market is bifurcated into cloud and on-premise. By size of organization, the market is classified into large enterprises and SMEs. End-user, the market is segmented as banks, investment management firms, trading and exchange firms, brokerage firms, and others (asset management firms, and custody and compliance providers)

By advisory model, robot advisory is expected to grow at the fastest pace in the forthcoming years. As it provides low-cost alternatives over human advisory service offering to the client base 24/7 it will gain high prominence in the forecast period contributing the growth of global wealth management software market. By deployment model, cloud segment will grow at a faster pace. As cloud system provides several benefits to the manufacturers involving reduction in cost of operation, flexibility in payment, scalability of the system, access from anywhere worldwide, low deployment & maintenance cost, and easy handling of the commands are the supportive factors that will drive the overall wealth management software market globally. By enterprise size, the large enterprise segment will take a forefront lead in the global wealth management software market. Large enterprise focusing on adoption of new technical functionalities, storage, and processing is one of the prominent factors that contribute for the growth of global wealth management software market. Furthermore, by end-user, the bank segment holds the dominating market share from the past and is expected to continue similar trend till the forecast period. This is attributed to banks playing a key role in management of the growing assets and wealth of individuals. 

Regional Overview

North America dominated the wealth management software market in the past and is expected to do so again in the coming years. The early adoption of new emerging technologies, as well as the expansion of client data bases, is important factors that will contribute to the overall growth of the global wealth management software market. Furthermore, the highly competitive environment in North America province supports the growth of the global wealth management software market. The presence of key banking players such as UBS, Morgan Stanley, and Bank of America Merrill Lynch offers good wealth management deals and tries to provide maximum benefits to the growing client base. In addition to private banks, the wealth management industry in North America includes various types of wealth managers. Independent broker-dealers (IBDs), wire houses, independent advisors, and managed futures organizations (MFOs) compete for clients in the High Net worth (HNW) and Ultra High Net worth (UHNW) segments. As the number of HNW and UNHW people grows, it serves as another powerful driver. Asia Pacific, on the other hand, is expected to have the fastest growing CAGR during the forecast period. The growing number of small and medium-sized businesses in emerging markets, particularly China and India, is expected to create lucrative growth opportunities for the wealth management software market.

Competitive Analysis

The prominent players involved in global wealth management software market involve SS&C Technologies, Inc., Fiserv, Inc., Fidelity National Information Services, Profile Software, Broadridge Financial Solutions, InvestEdge, Inc., Temenos AG, Finantix, SEI Investments Company, Comarch, ObjectWay SpA, Dorsum, and among others

Market Segmentation

Market By Advisory Model
Human advisory
Robo advisory
Hybrid

Market By Business Function
Financial advice management
Portfolio, accounting, and trading management
Performance management
Risk and compliance management
Reporting
Others (billing and benchmarking)

Market By Size of Deployment Model
Cloud
On-premises

Market By Size of Organization
Large Enterprise
SMEs

Market By End-User
Banks
Investment management firms
Trading and exchange firms
Brokerage firms
Others (asset management firms, and custody and compliance providers)

Market By Geography

North America
•    U.S.
•    Canada

Europe
•    U.K.
•    Germany
•    France
•    Spain
•    Rest of Europe

Asia-Pacific
•    China
•    Japan
•    India
•    Australia
•    South Korea
•    Rest of Asia-Pacific

Latin America
•    Brazil 
•    Mexico
•    Rest of Latin America

Middle East & Africa
•    GCC
•    South Africa
•    Rest of Middle East & Africa