6 Wealth Management Technology Trends To Outpace Your Competitors

The wealth management industry has experienced rapid recent growth due to democratization of investments across online Apps. According to estimates, the global wealth management market has $103 trillion in assets under management (AUM). Wealth managers may now develop more intricate strategies and ensure that their portfolios will produce the highest returns thanks to this. This article will highlight the Top Tech Trends in Wealth Management.

Major innovations in wealth, fund, and asset management are anticipated for 2023 as the sector continues to hone its tools and methods to meet the ever-changing needs of millennial investors.

The Top Trends That Wealth Managers Need To Know

1. Robo-Advisory

Robo-advisory will certainly be one of the biggest shifts in the financial management industry over the next few years. A robo-advisor is software created to automatically evaluate investment trends and possibilities following a given investor’s goals, objectives, risk tolerance, and investor profile. By 2025, $16 trillion in AUM will be managed by robo-advisors, which offer specialized portfolio management services and customized investment advice.

Robo-advisors with modern artificial intelligence and machine learning capabilities offer some benefits. Wealth managers can construct and develop portfolios with minimum work and input considering the investor’s long-term goals. This technology is anticipated to be employed more frequently in the upcoming years, opening up portfolio management to all investors and offering a more affordable option to conventional investment advisors.

2. Platforms For Digital Wealth

A significant trend in wealth management technology has evolved with the expansion of online wealth management platforms. These platforms combine cutting-edge algorithms, data analytics, and artificial intelligence to provide investors with specialized financial services. These platforms may offer scaled, individualized investment advice and portfolio management, sometimes at a lower cost than traditional wealth management services, by examining their members’ financial situations and risk profiles. 

Younger generations and tech-savvy investors have been drawn to wealth management services thanks to the accessibility of digital wealth platforms. These platforms frequently connect to other financial applications and tools, giving users a comprehensive view of financial planning and investing plans. As the business evolves, using blockchain technology, robo-advisors, and improved security measures will fuel future growth in the digital wealth management sector.

3. Alternative Data Sources & Big Data Analytics

Big data analytics and alternate data sources are significant technological advances in wealth management. Companies are using advanced analytics to better understand consumer behavior, industry trends, and investment opportunities as a result of the exponential growth in data. Big data analytics allows wealth managers to analyze large amounts of data and reach well-informed decisions quickly.

Alternative Data Sources (ADS) also enhance standard financial data and offer distinct viewpoints for investing strategies. Examples include social media activity, satellite imaging, and IoT data. These resources enhance portfolio management and risk reduction by seeing emerging trends and evaluating risks in real time.

Adopting these trends enables wealth management firms to maintain competitiveness, provide specialized services, and improve investment results. It also presents concerns with data privacy, security, and regulatory compliance that must be appropriately managed to ensure successful acceptance and deployment.

4. ESG As A Method Of Investing

A major development in wealth management technology is the investment in ESG (Environmental, Social, and Governance) factors. ESG investing blends financial concerns with environmental, social, and governance factors to maximize profits while promoting sustainability and societal impact. Wealth management firms are employing ESG as a strategy more frequently due to the growing demand from investors for ethical and responsible investing.


Since it provides data analytics, machine learning, and AI-driven tools to assess the ESG performance and risks of firms, technology is crucial to ESG investment. With cutting-edge tools, wealth managers may communicate with clients about their sustainable decisions, monitor performance, and identify ESG-compliant options.

Additionally, technology increases transparency, allowing investors to evaluate the results of their bets. As consumers become more conscious of corporate responsibility and climate change, ESG investment strategies are predicted to continue impacting the wealth management industry and positively improve the financial markets and society.

5. Integration Of AI, Machine Learning, And Automation

Integrating artificial intelligence and machine learning will significantly impact investment decisions, risk analysis, and portfolio management. By analyzing massive volumes of data and discovering trends, these technologies can aid asset managers in making wise decisions by offering more precise predictions and insights.

The workload linked to routine chores, client onboarding, handling data entry, reconciliation, and reporting processes will also be reduced by robotic process automation (RPA), freeing up human resources to concentrate on more strategic tasks like investment analysis and client relationship management. AI, Machine learning, robot hand ai artificial intelligence assistance human touching on big data network connection background, Science artificial intelligence technology, innovation and futuristic. 

Source: Forbes

6. Fostering Trust With Digital Assets

Recent declines in bitcoin asset prices and a sizable number of natives have weakened trust, a foundational element of every financial system. Digital assets will likely realize their full potential and will only be valuable to most enterprises if confidence is rebuilt.

Regaining some of that trust may give certain athletes a competitive advantage. Consider how offering customers the tested, verified ability to secure their digital assets and keys could make “self-custody” safe and practical or offering “hosted” custody that is safe and secure. 

On the other hand, AWM businesses that work with or invest in digital assets must be aware of the risks associated, particularly those related to the companies that offer these services and how such risks affect stakeholder confidence.


As it adjusts to clients’ changing needs, the wealth management industry is expected to make significant strides in 2023. Technology like robo-advisors, digital asset management platforms, data management, and socially responsible investing are now anticipated to be widely adopted.

To ensure sustainability and increase their market share, investment firms and fund/asset management enterprises must keep up with the most recent changes as the sector advances. Thanks to multiple investment management platforms, investment advisors and their clients have secure, 24/7 access to their most important data from any location.

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