Guide:
Top 20 Wealth Management Software Providers in 2024
Wealth management platforms play a crucial role in achieving financial success and asset growth. With the increasing importance of digital solutions, choosing the right wealth management software can be challenging. This guide explores key factors and criteria for selecting quality platforms, providing insight into the top-rated solutions for 2024.
Author: Alena Tomchuk
Last updated April 23
Contents
Introduction
Wealth management platforms are online tools that help manage assets and increase a client’s investments. These tools can be used by personal bankers in wealth management and personal finance. The services provided include financial planning, managing risks, handling portfolios, and dealing with clients.
A study reveals that the market for these platforms was worth $2.37 billion in 2021. It is estimated to rise to $6.29 billion by 2029. This increase comes from people’s need for digital solutions for managing wealth and making decisions based on data.
Wealth management, once a luxury for only wealthy individuals and families, is now opening its doors to
everyone. This change happened thanks to WealthTech companies. WealthTech is part of fintech that uses up-to-date technology like Artificial Intelligence (AI), Machine Learning (ML), and blockchain to improve the user experience in financial matters.
AI and ML predict market behaviors and provide customized advice about financial matters, while blockchain ensures that all transactions are secure and transparent. WealthTech companies offer complete solutions for managing investments and assets. These changes are big, and they’re shaking up how wealth is managed across the globe
TOP Wealth Management Trends to Watch in 2024
Personalized wealth management
At the heart of this change, personalized services stand out as an important trend in 2024. With data analytics and artificial intelligence (AI) by their side, firms can understand client behaviors better than before. The result is tailor-made investment advice that matches each person’s financial goals perfectly. Wealth management companies are changing their ways of working. They are making their setups better for facing new trends. To cope with this trend, firms are focusing on improving hybrid styles and enabling fluid conversations. To do this, companies are using digital tools to talk effectively with tech-wise investors.
Personalized wealth management comes loaded with several perks:
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Provides unbiased and effective tips on growing and guarding your investment.
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Provides a financial plan suitable for the client’s unique position and aims.
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Offers regular help as per the changing needs of the clients.
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Allows advisors to tune client’s portfolios as the market changes.
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Provides an all-round solution, better than old investing methods.
A PwC report predicts that the total monetary assets looked after globally, also called assets under management (AUM), will reach $145.4 trillion by 2025. This prediction is based on an annual growth rate of almost 6%. A big part of this growth comes from the rising demand for wealth management services, especially from very rich people and their families.
A new generation of investors
The field of wealth management is also adopting a set of new challenges offered by different age groups of investors on the scene. This group of investors includes people from younger generations, Generation X, and also Baby Boomers. But what causes this change? It’s due to different investment habits, new technology, and huge amounts of money being passed down between generations.
Wealth management companies are adjusting to these changes. They’re changing up their business plans and using digital technology more often. By using customer information, analysis tools, and artificial intelligence (AI), they are making their services more customized to suit individual preferences. Catering towards this new investor group is a trend that goes across the whole field. Morgan Stanley even says that this shift could have significant effects when it comes to helping customers at banks overall.
Millennials and Generation Z are good with technology. They want easy-to-use wealth management services that work well online. They also like premium features. A recent study shows that 44% of investors plan to move their funds within two years. Nearly half of them rate an easy-to-use online service as important when choosing a provider. To attract these young clients, firms offering wealth management are using new tools and technologies. They’re updating their systems and the data they use.
The next group up in age is called Generation X. This group is key for wealth management providers as they currently earn high wages and are starting to receive large sums from older generations passing on their money. But this generation likes a mix of human contact and tech convenience. Firms understand this preference, so they offer what’s termed ‘hybrid’ models. These blend computer power with real-world interaction - ideal for Generation X’s needs.
Another age group of investors is the Baby Boomers. Baby Boomers hold a lot of wealth right now. They will soon give most of it to the younger people. In the next 25 years, about 45 million homes in the US will shift $68.4 trillion to younger family members. This big money move is why many companies are changing how they handle money management. For instance, wealth management firms are planning on making their services better for Baby Boomers by providing services that manage this transfer of wealth efficiently.
Sustainable investing and ESG
In simple terms, sustainable investing has become vital to all wealth management companies. It uses environmental, social, and governance data for decision-making in finance. People are expecting this trend to emerge as a top one in wealth management by 2024.
The financial world is putting more effort into addressing issues related to the environment and society. They are coming up with new ways of investing that take these issues into account. At the end of 2020, we see evidence backing up this shift: Investments using such strategies have passed $35 trillion.
Investment corporations broadly accept ESG data in their processes now. They offer products tied directly with ESG principles. These companies also ensure investors know what they’re doing; transparency is key here.
Some leading players embracing ESG include DBS, UBS, WealthSimple and many others like BlackRock or Betterment. Essentially, these firms use specific tools like myImpact from BNP Paribas Wealth Management firm, which helps align clients’ values in tandem with their goals regarding sustainability.
ESG highlights real risks and opens up new ways to invest. It lets us understand how people’s wants, government spending, financial value, and performance change with time. It is predicted that by 2026, ESG-focused investing will jump 84% to a huge $33.9 trillion. This accounts for about one-fifth of managed assets. By the start of 2022’s second quarter, globally, it was found that over $2.77 trillion were held in ESG-focused portfolios.
Modern technologies
Modern techs, such as big data, advanced analytics, and artificial intelligence (AI), are all driving changes in how companies handle wealth management. Also, the use of Application Programming Interfaces (APIs) is increasing, too. These trends could be a big deal in wealth management by 2024.
Big data and high-end analytics help find patterns and trends and test how investments are doing. Companies that manage wealth can get ahead if they make good use of these tools for analyzing data. That’s because they can offer more personal services based on what the customer wants or needs, with better ways to invest their money, too. Analytics tools give useful tips for investment using big data – this includes understanding what consumers want, the spending behavior of the government, value assessment and financial results.
The wealth management industry is also slowly but surely embracing Artificial Intelligence (AI). They are using a strategy which focuses on safety and adhering to regulations. Most of AI’s use falls into day-to-day tasks rather than directly dealing with customers. By the end of 2024, it is expected that this trend will continue. AI can shed light on real risks and uncover new opportunities for investment. It can also offer deep insights, which can be important for investments in being compliant with ESG frameworks.
Financial firms also use APIs, tools that link investment decision-making with trading platforms. APIs enable different applications or programs to talk to each other in real-time. This linkage speeds up access to market knowledge, hence improving the quality of investment decisions that are made. Thanks to such integration, there is less waiting between deciding what actions to take and what trades to carry out on a stock exchange platform. By the end of 2024, global spending connected to managing APIs may reach an impressive $6.2 billion.
Blockchain in wealth management
People are seeing blockchain as a big change in wealth management. Blockchain is a secure network that doesn’t require banks for validation. This technology makes it easier to trade digital goods and helps follow compliance measures with better data transparency.
Wealth management firms want to use blockchain to help customers and make their systems more efficient. They plan to use it quietly in the background without customers knowing about it. Blockchain can lessen transaction costs and risks involved with other parties and improve capital availability. It can also increase the accuracy of data while simplifying ‘Know Your Customer’ checks and flagging linkages to entities under sanctions.
In this regard, Northern Trust is working with IBM to produce blockchain technology aimed at the private equity market. This technology is being used for managing private equity fund operations of Swiss asset-manager Unigestion. Separately, Xapo Bank, a licensed private bank, is also experimenting by combining traditional banking with the benefits of Bitcoin and stablecoins’. The CEO of Xapo Bank, Seamus Rocca, talks about how their contribution is leading to an evolution in the financial industry.
Predictions show an increase in spending on blockchain solutions. It is expected to reach nearly $19 billion by 2024. The worldwide market size of the tech could hit $1.2 trillion by 2030, growing massively at a rate of 82.8 percent annually.
Key Wealth Management Software Platform Features
Essential features of wealth management software platforms
Account aggregation
Account aggregation is an impressive feature in wealth management software. It automatically gathers financial data from many accounts at different places. This includes custodians and client’s other held accounts. All the information gets put together in one platform. This gives a complete look at a person’s finances. Because of this, it becomes an essential part of financial planning. There is no more need to collect paper statements or manually enter data into various systems for reports or other uses.
A study by Wealth Access shows how effective this tool can be. Their platform gathered over $4.8 billion in assets from held-away accounts alone. The 130 advisory firms using Wealth Access managed about 65% of these assets, which added up to new assets worth around $3.1 billion being managed.
Compliance and security
Wealth management software needs to be safe and compliant with rules and regulations. This helps advisors keep up with needful laws and industry standards. Keeping client data safe is important for wealth management firms. To do this, they use flexible controls for access and encryption standards that protect information and follow compliance protocols.
The 2023 Thomson Reuters Risk&Compliance Survey Report says that about 70% of professionals dealing with corporate risk see a shift in how companies meet compliance over the past two or three years. The measures went from just ticking off boxes to more careful planning. Finally, according to Gartner, by the end of 2024, companies using a cybersecurity mesh can cut down financial losses caused by security issues by almost 90%.
API and integrations
Wealth management software also needs to have features called APIs. These help different programs to communicate and share data quickly. This changes how wealth is managed. APIs let investment tools combine easily with trading platforms, making investments better and faster.
APIs also open the door to many new chances for investment. They link clients with numerous wealth platforms, such as AI advisors and alternative investments. Before, these were just for institutional investors. Research has highlighted huge trends for API management by the end of 2024, showing that it could be worth $6.2 billion worldwide.
Reporting and analytics
The reporting and analytics feature in wealth management software lets wealth managers learn about the needs, likes, and actions of a client. It aids in creating tailored investment plans for them. The data collected from this feature helps give a full picture of one’s financial status. The feature also allows wealth management platforms to check how well products are working and what resources they’re using effectively.
A survey by Deloitte showed that nearly 86% of respondents spent more on data analysis in the last three years than before. The rise can be tied down mainly to two reasons: people want digital solutions for managing their wealth and an increased urge to make decisions based on data.
Scalability
Wealth management software needs to be scalable. This is because as people build their assets, things can get complicated and a good system evolves with the users’ needs. More investors mean more accounts, but a strong platform takes it in stride without slowing down. This results in better service for clients and leads to happier and longstanding relationships.
To put into context the size of the wealth management software market, this sector was worth over $3 billion in 2022 alone! It’s estimated that it’ll grow by 10% every year from 2023 to 2032. What’s driving this growth is that people are increasingly looking at online options for managing their assets across the globe.
Financial planning
Another important feature wealth management software should have is financial planning. Platforms should provide users with an overview of their financial situation and should allow customized plans to be made. If there are risks in clients’ portfolios, these platforms should help advisors spot them early, allowing them to make changes to manage the risk better. People all across the world are using digital tools like these more every year. In fact, by the end of 2024, the market size is expected to reach $5.31 billion and could reach as much as $10.25 billion by 2029, with an annual growth rate of 14.04 percent.
Risk management
Wealth management software platforms should have a key feature called risk management. Risk management features are used for checking and lessening risks in an investor’s portfolio. This helps wealth managers make strong portfolios for their clients.
Risk management should be automated, providing managers with more control over investments. Wealth managers can help clients meet their investment targets by using these automated assessments and data collection. The need for digital solutions in wealth management and the desire to make decisions based on data is creating an increasing demand for platforms with risk management features.
User experience (UX)
User experience, or UX for short, is very important in wealth management software. This is because it represents how users feel when they use the system. Things like how easy it is to use and how pleasing it looks make up the UX. Good UX can help businesses bring in new investors. Plus, it can boost relationships with clients and make a business grow faster.
Research shows that if users have a bad experience, there’s an 88% chance they won’t come back, whereas investing just $1 into improving UX can give returns of $100 - quite the profit! People are changing what they want from services these days as well. They want digital platforms that can be tailored to suit them perfectly and work smoothly without any hitches.
So for wealth management software to do well against other businesses, they need to put User Experience first before anything else.
Cost of wealth management software platforms
Wealth management software prices can change a lot. These changes depend on functions, services, and the size of your business. Some platforms need you to pay each month or each year; for others, you might have to buy some for one time only or get a license.
The following table lists the approximate prices for the various platforms depending on the set of features:
* Please be aware that these are typical expenses and that actual costs may differ depending on a number of variables.
Main challenges faced by wealth management software
Data privacy and compliance
Wealth management platforms keep private information. So, keeping this data safe is very important. Companies need to follow many financial rules and industry guidelines for their software. To deal with this issue, firms use complete end-to-end encryption, strong firewalls, and control over who has access to information.
Security
Safety of data becomes a big worry when wealth management platforms manage lots of financial details and client records. To save themselves from online threats, companies are using hard-to-break data encryption methods, authenticating users through multiple checks, regularly updating their software systems, teaching employees about security threats, and planning how to respond when such incidents occur.
Regulatory changes
Different laws regulate how wealth management works in different regions. So, software developers need to stick to these changing rules. To do this, some companies use special features within their platforms that alert the users about any regulation changes. This helps them adjust quickly to the changing laws. In this aspect, automation also helps make things better in wealth and asset management by improving efficiency and accuracy.
Integration Challenges
It’s crucial to manage the vast amount of data wealth management softwares has in one place. If a client’s information is scattered, getting a full picture of the client becomes hard and almost impossible. This makes personalized service difficult to offer as well. To tackle this, companies are moving from old legacy systems to modern cloud-based solutions.
TOP 20 wealth management software providers
Velmie
Velmie offers a modular software platform tailored for wealth management companies, private banks, and investment advisors, enabling highly customized solutions. Its innovative API orchestration technology facilitates connections to multiple payment rails, while omnichannel interfaces enhance client engagement and convenience.
Our platform offers key features that make it an ideal solution for wealth management services providers:
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API and integrations: Our strong API layer allows smooth integrations with a core banking system and other financial tools and services.
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User-friendly UI: Intuitive and straightforward interfaces ensure a smooth customer journey and engagement.
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Modularity: A microservices infrastructure makes our banking software platform modular and extremely flexible, allowing it to perform customizations, integrations, and extensions efficiently.
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Security and compliance: We prioritize robust security measures and stringent compliance protocols to ensure a safe and regulatory-compliant financial environment.
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Full tech support: Starting an agency banking journey can be complex, but we're here to help. We guide our customers through the process and provide comprehensive tech support every step of the way.
FIS Unity Wealth Platform provides a unified, seamless user experience across various channels for wealth providers in the front and middle office, catering to both high-net-worth individuals and institutional investors. It offers a comprehensive view of household accounts for both wealth advisors and investors, facilitating more tailored interactions. Leveraging data, artificial intelligence, predictive analytics, and seamless API integrations, Unity provides a comprehensive solution, presented in a unified interface accessible through various channels.
Key features:
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Client engagement: Versatile tools for seamless investor relationship management, spanning digital, face-to-face, or hybrid channels.
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Advisor productivity: a web-based dashboard consolidates client management, financial planning, trading, asset allocation, and reporting tools.
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Investment management features user-defined access for various roles like investment officers, account administrators, and traders, facilitating tasks such as electronic order management and trade execution while ensuring compliance.
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Operations and asset servicing, including securities processing, asset accounting, trust accounting, multicurrency accounting, reconciliation, portfolio and cash management, fee processing, and custody.
Avaloq Wealth
Key features:
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Prospect management
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Client profiling and onboarding
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Relationship manager dashboard
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360° client view
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Tailored news feed
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Sales opportunities tracking
Aladdin Wealth
Key features:
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Portfolio analysis
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Proposal generation
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Business management:
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Alerts
Morningstar Direct
Morningstar Direct stands out as a premier investment analysis platform, celebrated for its comprehensive insights and data-driven solutions. Grounded in innovation, it provides professionals unparalleled access to financial analytics, empowering informed decision-making and revolutionizing investment strategies crucial for success across diverse markets.
Key features:
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Investment research tools: Extensive research on various investment options.
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Portfolio analytics: Tools for analyzing and evaluating investment portfolios.
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Performance attribution analysis: Evaluating factors contributing to portfolio performance.
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Risk management tools: Assessing and managing investment risks.
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Market data and insights: Access to comprehensive market information and trends.
Temenos Multifonds
Temenos Multifonds, developed by Temenos, is a specialized banking and financial software solution tailored to serve the asset management and investment fund sectors. With its all-in-one platform, Temenos Multifonds offers seamless fund administration, accounting, and investor servicing capabilities. It supports various types of investment funds, such as mutual funds, hedge funds, and private equity funds. By automating and simplifying complex fund administration tasks, the software enables firms to enhance operational efficiency, mitigate risks, and ensure compliance with regulatory standards.
Key features:
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Fund accounting: calculation and reporting of net asset value (NAV), income, expenses, and other financial metrics.
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Fund administration: investor onboarding, fund performance analysis, trade processing, and compliance monitoring.
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Transfer agency: registration, transaction processing, reporting, and fee calculations.
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Regulatory compliance.
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Data management: data integration, accuracy assurance, and reconciliation across multiple sources.
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Reporting and analytics: customizable reporting templates and analytics tools.
Comarch Wealth Management
Comarch Wealth Management offers an integrated, multi-module platform designed to provide optimal investment advice to clients regardless of their profiles or evolving needs. It combines traditional, personalized banking-client relationships with digital innovations in wealth management services. Whether you prefer personal investment advisory, discretionary portfolio management, or automated robo-advisory driven by AI engines, Comarch caters to your specific business model and preferences.
Key features:
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Advisor’s front-end: client management and profiling, financial analysis and planning, full advisory process, alerts and monitoring.
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Client reporting: custom templates and preferences, scheduled and ed-hoc reporting, report distribution.
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Portfolio management: order management, pre and post-trade compliance, portfolio valuation and accounting, integration with counterparts and data vendors.
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Performance and risk analytics: P&L and performance analysis, risk assessment, data analytics.
InvestEdge
InvestEdge epitomizes innovation in wealth management technology, providing cutting-edge solutions tailored for advisory firms. It leads with customized approaches that optimize portfolio management and enhance client engagement, emphasizing analytics and insights to empower advisors in delivering exceptional service and strategic guidance.
Key features:
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Prospect management
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Client profiling and onboarding
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Relationship manager dashboard
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360° client view
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Tailored news feed
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Sales opportunities tracking
FNZ Platform
FNZ is a global fintech platform that collaborates with numerous top financial institutions to revolutionize how they cater to their wealth management clientele. Its Platform-as-a-Service combines cutting-edge technology, IT infrastructure, and investment operations, seamlessly integrating front-office digital delivery with back-office operations and regional hosting infrastructure.
Advent Portfolio Exchange (APX) by SS&C Technologies is a unified solution for portfolio management, performance measurement, accounting, and reporting, seamlessly integrating front, middle, and back-office functions. With APX, investment managers can efficiently oversee portfolios and strategies for individuals, institutions, and funds, while maintaining control over holdings, transactions, and performance tracking all in one place. Advent Portfolio Exchange (APX) is a unified solution for portfolio management, performance measurement, accounting, and reporting, seamlessly integrating front, middle, and back-office functions. With APX, investment managers can efficiently oversee portfolios and strategies for individuals, institutions, and funds, while maintaining control over holdings, transactions, and performance tracking all in one place.
Key features:
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Extensive collection of standard reports. Automated report bundling
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Adaptable personalized reporting
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Comprehensive coverage across multiple currencies and asset classes
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Performance analytics
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Fully integrated front-to-back suite
WealthBlock
WealthBlock introduces accessible real estate investment opportunities through blockchain technology, democratizing investing with fractional ownership and liquidity. Renowned for its innovative approach, it reshapes how individuals engage with and benefit from the real estate market by prioritizing transparency and security.
Key features:
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Fractional ownership: Allowing partial ownership of real estate assets.
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Blockchain integration: Utilizing blockchain for security and transparency.
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Access to real estate investments: Offering diverse investment opportunities.
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Liquidity provision: Options for trading fractional real estate shares.
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Risk assessment tools: Analyzing and mitigating risks in real estate investments.
Objectway
Objectway specializes in providing wealth and investment management software solutions, renowned for its innovative digital platforms empowering financial institutions and advisors with robust tools for client engagement, portfolio management, and advisory services, enhancing efficiency and delivering personalized experiences in the financial industry.
Key features:
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Wealth management platforms: Comprehensive software for managing wealth and investments.
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Client engagement tools: Interactive platforms for effective client engagement.
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Portfolio management: Tools for efficient management and analysis of investment portfolios.
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Advisory services: Solutions supporting financial advisors in offering guidance and services.
eMoney
eMoney transforms financial planning with its user-friendly platform, empowering advisors to provide personalized, comprehensive guidance. Renowned for its client-centric approach, it facilitates deeper engagements through interactive tools and innovation, streamlining planning for both advisors and clients toward financial success with confidence and clarity.
Key features:
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Scenario planning: Modeling various financial scenarios for informed decision-making.
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Legacy planning: Preparation of assets and instructions for heirs.
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Retirement planning: Calculators and projections to achieve retirement goals.
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Estate planning: Tools for managing and planning inheritances and legacies.
AdvisorEngine
Key features:
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Client portal
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Data import/export
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Financial planning
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Investment tracking
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Loyalty program
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Portfolio management
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Patch scanning
Practifi
Key features:
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Fee calculation and management: Managing fee structures and billing.
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Mobile accessibility: Accessing and managing data on mobile devices.
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Data security measures: Ensuring robust security for client data.
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Automated notifications: Notifying users about important updates or tasks.
Addepar, a leading fintech company, is transforming wealth management with its comprehensive platform offering financial data aggregation, analysis, and reporting for investors. Its intuitive interface simplifies complex data, empowering financial advisors with insightful tools to make informed decisions and revolutionize the understanding and management of wealth in the industry.
Key features:
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Investment research tools: Extensive research on various investment options.
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Portfolio analytics: Tools for analyzing and evaluating investment portfolios.
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Performance attribution analysis: Evaluating factors contributing to portfolio performance.
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Risk management tools: Assessing and managing investment risks.
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Market data and insights: Access to comprehensive market information and trends.
Allvue's wealth management software delivers seamless integration, providing advisors with a holistic platform to foster unparalleled client relationships while streamlining operations and facilitating data-driven decision-making. Through innovation, it raises industry standards, transcending traditional limitations and creating an evolved landscape for wealth management.
Key features:
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Portfolio management: Comprehensive tools for managing various investment portfolios.
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Client relationship management (CRM): Tools to manage client interactions and relationships.
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Risk management: Tools to assess and mitigate portfolio risks.
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Trading and order management: Facilities for executing trades and managing orders efficiently.
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Compliance management: Ensuring regulatory compliance and adherence to industry standards.
Advisor360 is a comprehensive wealth management platform aimed at strengthening advisor-client relationships by integrating tools for portfolio management, client engagement, and financial planning, providing advisors with a holistic view.
Key features:
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Financial planning: Tools supporting financial goal setting and planning.
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Reporting and analytics: Robust reporting and data analytics capabilities.
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CRM integration: Integration with customer relationship management systems.
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Advisory support: Solutions aiding financial advisors in their services.
Pershing
Key features:
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Clearing services: Processing and settlement of trades for financial institutions.
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Custodial services: Safeguarding and administering client assets.
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Trading platforms: Access to various trading tools and markets.
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Wealth management solutions: Tools for managing client wealth and investments.
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Account management: Efficient management of client accounts.
Backstop Portfolio Management
Key features:
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Portfolio data aggregation.
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Data analysis.
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Policy adherence
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Sophisticated benchmarking
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Portfolio performance tuning
Conclusion
Introducing a new wealth management software can be hard. This is because the developers have to make sure that things like data privacy and compliance are not breached. It also has to do with security, regulations, and how the software integrates with the rest of the platform.
However, companies are solving these problems in many ways. They use strong data protection and more than one way of confirming identity for users. They also keep their software updated and train employees for security lapses. Also, they have plans in place if something goes wrong.
Beating these troubles means that firms can offer a top-notch user experience without breaking any rules or putting client details at risk. Plus, being able to handle lots of different data on one platform helps these platforms grow bigger and faster while reaching out to more clients. As the market gets bigger, there’s a big opportunity for those who wisely work through these challenges using digital transformation.