Wealth Management Platform Market Size By Advisory Mode (Human Advisory, Robo Advisory, Hybrid), By Deployment Model (On-premise, Cloud), By Application (Financial Advice & Management, Portfolio, Accounting, & Trading Management, Performance Management, Risk & Compliance Management, Reporting), By End-use (Banking, Investment Management Firms, Trading & Exchange Firms, Brokerage Firms), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 - 2027
The wealth management platform market is expected to witness significant growth by 2027 driven by the proliferating demand for efficient wealth management systems across the globe.
Wealth management platforms equip financial firms with latest integrated tools as well as data driven analytics to help their advisors deliver smart solutions. These platforms also allow advisors to better comprehend client needs and suggest optimal portfolio allocations. Recently, the COVID-19 outbreak has significantly disrupted the financial sector, creating an unprecedented demand for digital wealth management solutions, which has positively impacted market outlook.
Thus, industry players are adopting various strategic initiatives to gain a robust foothold in the evolving industry scenario, which has substantially enhanced the business landscape worldwide. For instance, in June 2021, Refinitiv, a financial software and risk solutions provider, launched its new platform for wealth management companies and their customers. The “Refinitiv Active Investor” was developed to help wealth management companies offer a superior trading environment by means of detailed and timely data and insights.
The technology has been built to provide a fully customizable look, which would allow companies to retain their brand identity. The platform also claimed to make trading efficient as it could be integrated into the existing order management system of a wealth management company.
In another instances, in June 2021, d1g1t Inc., the first company to provide an enterprise wealth management platform integrated with risk management tools and institutional-grade analytics, announced the closing of a new $16 million (CAD)-funding round. Previously, in April 2021, d1g1t had also formed a strategic alliance with Conquest Planning Inc., to offer a top-flight, modern, and seamless technology solution to financial advisors and companies.
The wealth management platform market has been categorized on the basis of advisory mode, deployment model, application, end-use, and region. In terms of application, the market has further been segmented into portfolio, accounting, & trading management, financial advice & management, risk & compliance management, performance management, reporting, and others.
The performance management sub-segment is estimated to grow at a CAGR of over 10% through the assessment period. Growing demand for understanding portfolio performance using analytics tools is likely to enhance segmental demand across the globe.
From the end-use perspective, the market has been bifurcated into investment management firms, banking, brokerage firms, trading & exchange firms, and others.
The wealth management platform market from the brokerage firms sub-segment is projected to expand at a CAGR of approximately 15% over the analysis period. Rapid digitalization across brokerage firms is anticipated to boost product demand in the coming years.
In the regional landscape, Latin America accounted for over 5% of the global wealth management platform market in 2020 and is set to observe considerable growth over 2021-2027. Increasing digitalization of the financial sector in the region is expected to support market expansion through the following years.
Meanwhile, propelled by the rising demand for secure wealth management solutions, the MEA wealth management platform market is estimated to grow at a CAGR of around 10% over the forecast timeline.
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