Wealth Management Software Market Size, Share & Trends Analysis Report By Advisory Mode, By Deployment, By Enterprise Size, By Application, By End-use, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global wealth management software market size was valued at USD 3.31 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 13.5% from 2021 to 2028. Constantly increase in the number of High Net Worth Individuals (HNWIs) across the globe is expected to drive the growth. Investment banks and independent financial advisors cultivate a close working relationship with HNWIs to understand their business goals and define investment strategies. HNWIs invest in capital markets to generate maximum returns. Wealth management of the increasing number of individuals in the traditional way is a tricky and risky task for financial institutions. This, as a result, the demand for tools or systems to automate the wealth management processes is growing continuously.

Moreover, numerous organizations are shifting their focus toward digital platforms to make their business tasks simpler. The wealth management system helps businesses to keep transaction accounts and efficiently manage wealth. The technological advancement in the field of blockchain and Artificial Intelligence (AI) is expected to drive market growth over the forecast period. The AI system efficiently tracks the expenditures of the customer and advises them accordingly. The blockchain and AI track the expense and the record pattern of the customer and make estimates accordingly. Based on these estimates, the system produces advice and provides assistance to the customer to effectively manage the expenses.

AI and Blockchain technology helps the customer to avoid regular visits to financial advisors. Moreover, various factors, such as the enhancement of customer service and the lowering of the operational cost, are further expected to propel the market growth. The lowering of the operational cost is carried out by the wealth management systems by including the use of robot advisors. These aforementioned factors are expected to fuel the adoption of wealth management software over the forecast period.

The outbreak of COVID-19 is expected to have a positive impact on the market. However, high dependence on traditional assets management methods is expected to act as a challenge for market growth. Moreover, inadequate technical expertise among business professionals is further anticipated to act as a challenge. Also, lack of awareness about the benefits offered by wealth management software among businesses is further expected to hinder the market growth.

Advisory Mode Insights

The human advisory segment led the market and accounted for more than 58.0% share of the global revenue in 2020. Numerous HNWIs across the globe are considering as their first preference. Increased security concerns in the wealth management industry are expected to propel the human advisory segment growth. However, the current trend shows that clients prefer the hybrid advisory model over the human advisory model.

The robo advisory segment is anticipated to register the highest growth over the forecast period. Robo advisors are highly accurate, efficient, and more accessible in comparison to other modes. Robo advisors offer various benefits, including an easier onboarding process, minimal investment requirements, and a suite of automated capabilities in comparison to the other modes. This advisory mode provides customers with direct software-based access to the business service portfolio.

Deployment Insights

The cloud segment dominated the market and accounted for more than a 55.0% share of the global revenue in 2020. Numerous businesses across the globe are focusing on adopting cloud-based solutions owing to various benefits it offers, such as scalability, agility, easy access to data, among others. Financial advisory firms across the globe are focusing on adopting these cloud-based solutions as these solutions help firms in reducing operational costs. These aforementioned factors are expected to propel the cloud segment growth over the forecast period.

The on-premise segment is anticipated to witness significant growth over the forecast period. Numerous organizations still prefer on-premise deployment of solutions as it enables organizations to have control over all data and systems. Also, with the help of on-premise solutions, business data is stored and handled internally. Moreover, businesses have in-house IT staff specifically dedicated to supporting and maintenance processes.

Enterprise Size Insights

The large enterprises segment led the market and accounted for more than 58.0% share of the global revenue in 2020. Large enterprises across the globe are focusing on new technical functionalities, storage, and processing technologies. Computing resources have become more reliable, cheaper, and more widely deployable. Therefore, large wealth management firms are making the most efficient use of opportunities that are critical to the long-term success of their business.

The small and medium enterprises segment is anticipated to register the highest growth over the forecast period. Increasing demand for wealth monitoring software by small and medium enterprises to effectively meet regulatory requirements and to condense asset monitoring costs is anticipated to boost the segment growth. The number of small and medium enterprises in emerging economies is growing, thereby driving the demand for wealth managing software. These aforementioned factors are expected to propel the small & medium enterprises segment growth over the forecast period.

Application Insights

The portfolio, accounting, and trading management segment dominated the wealth management software market and accounted for more than a 23.0% share of the global revenue in 2020. The segment growth can be attributed to the increasing demand for decision support, portfolio management, and trading solutions across numerous programs. With the highly competitive market, the portfolio, accounting, and trading managers are under pressure to effectively handle their existing customers’ data. The portfolio, accounting, & trading management solutions provide trading managers with effective advisory solutions that concentrate on collaborative activities to serve their customers in a better manner.

The financial advice & management segment is anticipated to register the fastest growth over the forecast period. Numerous businesses across the globe are focusing on accelerating digitization, increasing operational efficiency, and strengthening client relationships. This, as a result, is expected to propel the adoption of financial advice and management solutions in various end-use industries. Integrated financial advice and management technology-enabled advisors to collaborate with their clients to create investment proposals, identify financial goals, and effectively deliver financial advice to their clients.

End-use Insights

The banks segment led the market and accounted for more than 28.0% share of the global revenue in 2020. The global economy is expected to strengthen over the forecast period, and banks are anticipated to play a key role in managing the growing assets and wealth of individuals. Moreover, banks are leveraging wealth management software to ensure a client-centric approach. Also, banks can manage the financial assets of individuals from any location.

The trading and exchange firms segment is anticipated to register the fastest over the forecast period. Broad and ongoing changes taking place around the technological capabilities in the wealth management industry are expected to create growth opportunities for the wealth management software in trading and exchange firms. Moreover, this software is widely used by trading & exchange firms to effectively manage their clients’ assets. These aforementioned factors are expected to drive the trading and exchange firms' segment growth over the forecast period.

Regional Insights

The North American region dominated the market for wealth management software and accounted for more than a 36.0% share of the global revenue in 2020. The regional market growth can be attributed to the increasing number of HNWIs in the region. These HNWIs are increasingly subscribing to advanced financial advisory solutions. Moreover, the presence of prominent market players in the region is further expected to provide lucrative opportunities for regional market growth.

The Asia Pacific regional market is expected to emerge as the fastest-growing regional market over the forecast period. The region is expected to create growth opportunities for robo advisors owing to the increasing adoption of digital platforms. The combination of innovative analytics and advanced algorithms results in allowing techno-savvy customers to adopt the robo advisory tools to efficiently meet their investment requirements. Furthermore, the increasing number of small & medium enterprises in emerging economies, such as China and India, are expected to create growth opportunities for the wealth management software providers in the region.

Key Companies & Market Share Insights

The market is moderately fragmented. Prominent players are adopting numerous strategies, such as strategic joint ventures, product innovation, partnerships, geographical expansion, mergers & acquisitions, and research & development initiatives to cement their foothold in the market. Players are focusing on offering cloud-based solutions to both large and small and medium enterprises. Moreover, these solutions are designed to help financial firms efficiently managing their clients’ assets and wealth.

Vendors are focusing on offering hybrid services, including personalized and standardized advice to their clients globally. The need for standardization and personalization of advice mainly arises owing to the increasing demand for robust and consistent solutions among consumers. This, as a result, market players are focusing on producing computer-driven analysis to provide standardized advisory services. These players are also maintaining granularity in their service offerings with tailored solutions. Some prominent players operating in the global wealth management software market are:

• Comarch SA

• Dorsum Ltd.

• Fidelity National Information Services, Inc.

• Finantix

• Fiserv, Inc.

• Objectway S.p.A.

• Profile Software

• SEI Investments Company

• SS&C Technologies Holdings, Inc.

• Temenos Headquarters SA

Wealth Management Software Market Report Scope

Segments Covered in the Report

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the global wealth management software market report based on advisory mode, deployment, enterprise size, application, end-use, and region:

• Advisory Mode Outlook (Revenue, USD Million, 2016 - 2028)

  • Human Advisory

  • Robo Advisory

  • Hybrid

• Deployment Outlook (Revenue, USD Million, 2016 - 2028)

  • Cloud

  • On-premise

• Enterprise Size Outlook (Revenue, USD Million, 2016 - 2028)

  • Large Enterprises

  • Small & Medium Enterprises

• Application Outlook (Revenue, USD Million, 2016 - 2028)

  • Financial Advice & Management

  • Portfolio, Accounting, & Trading Management

  • Performance Management

  • Risk & Compliance Management

  • Reporting

  • Others

• End-use Outlook (Revenue, USD Million, 2016 - 2028)

  • Banks

  • Investment Management Firms

  • Trading & Exchange Firms

  • Brokerage Firms

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa