Product Code: 57230
The Wealth Management Platform market is expected to register a CAGR of 14.37% over the forecast period from 2020 to 2025. Robust wealth management platforms offer support for a broad set of digital channels such as smartphones, tablets, and browsers. Supporting cross-channel experiences reduces friction for financial institution's customers and financial advisors resulting in more efficient operations. As trading and investment management fees go to zero and firms grapple with decreasing margins, they have the requirement to digitize operations and find 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 financial advisor, make wealth management platforms stand out. Some 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 seeking advice for withstanding the current uncertainty in the investment environment, fintech companies are launching wealth management platforms that give wealth managers the insights and data they require to understand better and serve the needs of multiple clients. For instance, in June 2020, Fidelity National Information Services, Inc. launched FIS Unity, which utilizes open application programming interfaces (APIs) to give wealth managers a complete, integrated view of a client's financial assets across several financial providers. Using the system's analytics tools and intuitive dashboards, wealth managers can gain insights into their clients' investment history, lifestyle changes, and investing preferences, enabling managers to offer personalized investment recommendations that meet clients' current and future needs.
- In May 2020, Infosys announced a strategic partnership with Avaloq to provide end-to-end (e2e) wealth management capabilities through digital platforms. Infosys will act as an implementation partner for the company's wealth management suite of solutions to help clients transform and modernize their legacy systems into efficient digital advisory platforms. Infosys will utilize a standardized approach and its Global Delivery Model to implement Avaloq's solutions for clients. Infosys will work together with Avaloq to develop market opportunities beyond Switzerland and go to market capability for targeted accounts across multiple geographies. With a primary focus on Europe, Middle East, Africa, and Asia-Pacific regions, the partnership aims to offer e2e products and services as Software-as-a-Service (SaaS), private cloud, or public cloud across the globe.
- In August 2020, Lu International (Singapore), a subsidiary of China's retail fintech enterprise Lufax Holding, along with ASIKORNBANK announced a partnership to form an online wealth management platform for retail investors in Thailand. The platform named LU Global said it offers customers with round-the-clock access to a wide range of high-quality investments. The platform has instated a risk management system that adopts Know Your Product (KYP) and Know Your Customer (KYC) compliance procedures, alongside an Anti-Money Laundering (AML) and anti-fraud system. Lufax Holding will utilize its cloud-exporting model for the platform, which will be jointly operated and managed by both parties. The partnership is expected to increase the pace of digital transformation within the financial institution industry in Thailand and across the Southeast Asian region.
- The COVID-19 outbreak has prevented millions of people from gaining access to critical advice around investments and their finances. The pandemic has hugely impacted trading and investment, and multiple companies are improving their trading platform services to provide a scalable and reliable platform, which simultaneously offers access to global markets as well as insight into a range of trading strategies, and up-to-date market valuations and investment services. For instance, in May 2020, ITI Capital, a global financial services provider for institutional investors and private clients, has launched a new digital wealth management offering for investors during the COVID-19 crisis. The latest offering gives users instant online access to detailed financial and investment advice, using artificial intelligence and fintech.
Key Market Trends
Banks are Expected to Hold Significant Share
- According to Dorsum, based on surveys conducted with their banking clients, an average advisor needed to spend up to 60 minutes preparing for a meeting utilizing various back-office and auxiliary systems to retrieve the necessary data clients may request during the session. With a wealth management platform, this time significantly reduces since all relevant data is gathered in one place from all source systems with automatic data load overnight. Wealth Management Platform makes banking customers feel their investments are safe, which leads to more robust engagement and further investment willingness, which is tangible because they visit their advisors more frequently. The platform is expected to serve the growing demand and drives administrational efforts and costs down, resulting in a significant increase in effectiveness throughout the advisory network.
- In January 2020, private sector lender IndusInd Bank has launched its wealth management platform Pioneer Banking, which caters to high net-worth customers. Based on the bank's research-based capabilities, the new service merges wealth management solutions with an array of personal and commercial banking products. Moreover, multiple companies the market offer a wealth management platform exclusively for core banking abilities. For instance, Avaloq Banking Suite's flexible architecture allows for custom solutions and integration with third-party apps to create a personalized experience for the end investor and advisor. Avaloq Banking Suite's can create consistent client and advisor solutions using personas and a dynamic goals-based wealth management module that automatically adapts to the client's wealth and life situations using probability algorithms.
- In July 2020, Barclay's bank announced to introduce a hybrid digital wealth management service for current account customers with a minimum of EUR 5000 to invest. The latest service, Barclays Plan & Invest developed in collaboration with Scalable Capital, is expected to create a personalized investment plan tailored to a customer's goals, with Barclays then managing the investments on their behalf. The latest service will initially be piloted with Barclays current account customers who have at least EUR 5,000 to invest and will be accessed through online banking, with dedicated support over the phone. The significant increase in online and mobile banking is expected to positively impact the market with more banks incorporating their wealth management solutions through online banking.
- In January 2020, Citi's fintech incubator unit announced a strategic partnership with digital wealth management platform YieldStreet Capital, which is focused on opening up access to institutional-quality investments for individual investors across a range of asset classes, such as marine finance, art finance, legal finance, real estate, and commercial loans. In the same month, Citi launched Citi Wealth Builder, a low-cost, easy-to-use, digital investing platform with professionally managed portfolios that, in a matter of minutes, helps new and existing customers get on track and stay on track to achieve their retirement goals. Citi customers can start using the latest digital platform with a low initial investment of USD 1,500 and no advisory fees for Citi Priority and Citigold clients on their initial portfolio.
North America is Expected to Hold Significant Share
- 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 as 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 January 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. Pascal's advanced functionality and user design, client, and advisor advanced alerts engine, client engagement and behavioral finance tools, investment portfolio tools, and compliance are expected to provide Sterling a significant edge in the industry.
- In July 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. The partnership is forged with a joint-client mandate as its initial collaborative project, and Apex expects that project to go live in the coming months. In the future, innovations such as advisor tools, are planned for the platform. Marstone, also based in New York, currently has integrations with banking platforms, investment managers, and account aggregators.
- In October 2019, CI Financial Corp., an independent Canadian company offering global asset management and wealth management advisory services, announced that it is entering into a strategic partnership with fintech firm d1g1t Inc., provider of the first enterprise wealth management platform coupled with institutional-grade analytics and risk management tools. As part of the partnership, CI will utilize the d1g1t technology platform across the company's advisory businesses and make an equity investment in d1g1t equal to 9.5% of the company. Proceeds from the investment will be utilized to further product development and acceleration of d1g1t's commercial expansion. The company's enterprise wealth management platform allows CI Financial Corp. to share real-time intelligence about portfolios, clients, and the business.
The Wealth Management Platform market is highly competitive, owing to the presence of multiple vendors. The market appears to be moderately concentrated. Some of the major companies in the market include Avaloq Group AG, Fidelity National Information Services, Inc. (FIS), Prometeia S.p.A, etc. Additionally, many wealth management platform providers are making partnerships and acquisitions to expand their product portfolio and venture into new geographies.
- August 2020 - Prometeia, an Italian firm which provides wealth-tech management announced the opening an office in Zurich to serve as an operational hub for the Swiss market. Prometeia's digital wealth management platform provides tools and analytics to HNWI-focused advisors and robo-advisory models for self-service clients.
- July 2020 - Avaloq has announced the launch of a new stand-alone, core-agnostic suite of digital wealth management platforms. Besides Wealth, Avaloq plans to launch two additional stand-alone platforms, Engage and Insight, designed to provide cost-efficient end-to-end digital solutions at a level of simplicity that will pave the way for the democratization of wealth management.
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TABLE OF CONTENTS
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Buyers
- 4.2.3 Threat of New Entrants
- 4.2.4 Intensity of Competitive Rivalry
- 4.2.5 Threat of Substitutes
- 4.3 Assessment of the impact due to COVID-19 on the market
5 MARKET DYNAMICS
- 5.1 Market Drivers
- 5.1.1 Rising need to integrate business capabilities and channels in the wealth management process
- 5.1.2 Requirement of customer-centric business priorities, such as fully digitized client on boarding
- 5.2 Market Restraints
- 5.2.1 Lack of awareness related to wealth management platforms and higher dependency on traditional methods
6 MARKET SEGMENTATION
- 6.1 By Deployment Type
- 6.1.1 On-premises
- 6.1.2 Cloud
- 6.2 By End-User
- 6.2.1 Banks
- 6.2.2 Trading Firms
- 6.2.3 Brokerage Firms
- 6.2.4 Investment Management Firms
- 6.2.5 Other End-Users
- 6.3 Geography
- 6.3.1 North America
- 6.3.2 Europe
- 6.3.3 Asia Pacific
- 6.3.4 Latin America
- 6.3.5 Middle East and Africa
7 COMPETITIVE LANDSCAPE
- 7.1 Company Profiles
- 7.1.1 Avaloq Group AG
- 7.1.2 Fidelity National Information Services, Inc. (FIS)
- 7.1.3 Temenos Headquarters SA
- 7.1.4 Prometeia S.p.A
- 7.1.5 Backbase, Inc.
- 7.1.6 Tata Consultancy Services Limited
- 7.1.7 Fiserv, Inc.
- 7.1.8 Finantix S.p.A
- 7.1.9 EdgeVerve Systems Limited
- 7.1.10 CREALOGIX AG
- 7.1.11 Broadridge Financial Solutions, Inc.
- 7.1.12 InvestCloud, Inc.
8 INVESTMENT ANALYSIS
9 FUTURE OF THE MARKET