Wealth management software

Wealth management software

July 11, 2024

Wealth management software: market overview

the projected share of wealth management solutions in fintech by 2026

Statista

of the wealth management platform market held by portfolio, accounting & trading management solutions

Global Market Insights

the predicted CAGR for the robo-advisory segment from 2022 to 2027

PwC

Scheme title: Wealth management software market size, 2021 to 2030 (USD billion)
Data source: visionresearchreports.com — Wealth Management Software Market

Types of wealth management software

To facilitate the provision of financial advisory and other financial services, businesses can use different types of software solutions, ranging from tools automating specific wealth management workflows to multi-functional systems.

Portfolio management software

Portfolio management solutions track investments and automate portfolio performance analysis and asset rebalancing, helping investors optimize asset allocation and achieve their investment goals easier. Investors can leverage the software’s algorithms to factor in various risks, such as market downturns or asset volatility, to prevent losses and maximize returns.

Financial planning software

Financial planning software allows users to analyze their current assets, calculate expected returns, and evaluate future financial obligations to set and achieve long-term financial goals. These solutions can provide automatic financial advice to help users choose an optimal investment strategy and minimize tax liabilities while adhering to tax laws.

Investment platforms

Investment platforms provide investors with convenient and secure access to diverse investment options and the ability to manage trading transactions without intermediaries. These platforms can offer ready-made investment plans for individual investors and deliver personalized guidance to help users select an investment strategy that best suits their objectives.

Investor portals

Investor web portals provide investors with instant and secure access to their financial information, portfolio details, and portfolio performance reports. Portals can feature interactive dashboards and self-service tools for registration, account management, and investment transaction management to engage investors better and make their experiences seamless and user-friendly.

Client lifecycle management (CLM) systems

CLM software helps financial organizations automate client management, from prospecting and onboarding to servicing and loyalty management. CLM solutions, which provide complete visibility into investors’ activities and preferences, enable professionals to offer a personalized set of services using comprehensive data from unified client profiles, contributing to customer retention in the long run. Moreover, using CLM software for ongoing customer due diligence (CDD) and know-your-customer (KYC) reviews helps mitigate business and regulatory risks.

Trading software

Trading software enables buying and selling stocks, commodities, exchange-traded funds (ETFs), and other assets with web platforms or mobile apps. When equipped with trading algorithms, risk management features, and market data integrations, these solutions help traders optimize their portfolios and improve trading outcomes.
With blockchain technology, wealth management companies and traders can streamline transactions with cryptocurrency, tokenized assets, and non-fungible tokens (NFTs). Blockchain solutions facilitate digital asset portfolio tracking with immutable record-keeping and regulatory compliance with accelerated KYC and anti-money laundering (AML) procedures.

Investment accounting software

Accounting software automates routine accounting tasks related to investments, including calculating returns and taxes, payouts, and financial reporting on gains and losses. These solutions typically support multiple accounting methods depending on the asset class to recognize all investment income and ensure transaction transparency.
Financial analytics solutions help analyze portfolios’ performance against diverse benchmarks to identify their strengths and weaknesses. Users can track asset price fluctuations, explore market dynamics, and forecast financial trends to build well-balanced portfolios and efficient trading strategies.

Book of Record (BORs) systems

Accounting Book of Record (ABOR), Investment Book of Record (IBOR), and Performance Book of Record (PBOR) platforms ensure the accuracy and completeness of the portfolio data and provide different perspectives on portfolio component positions and transactions. This increased visibility into investment data helps streamline front-to-back wealth management operations, improve investment decision-making, and reduce operational risks.

Streamline wealth management with efficient software

Turn to Itransition

Functionality for excellent investment experiences

The choice of functional capabilities for a wealth management solution depends on your business objectives, client needs, regulatory requirements, and market trends. Here are some features that will help create great user experiences and distinguish your solution from others.

Unified client profile
Analyzing users’ personal data, life events, financial details, and investment portfolios to tailor the content to their preferences, adapt the communication, and offer personalized services to each user
Know-your-customer (KYC)
Checking clients’ identity, assessing their risk tolerance, verifying the source of funds, and running anti-money laundering (AML) screening to prevent fraud and ensure regulatory compliance
Notifications & alerts
Keeping users informed with automatic notifications, such as real-time market changes or suspicious activity alerts, and helping them seize investment opportunities and prevent malicious actions
Payments
Allowing transactions via integrated payment gateways, enabling users to quickly and securely transfer funds without the need to use other apps or visit physical offices
Account aggregation
Securely linking clients’ financial accounts (including bank, brokerage, or mortgage accounts) to the wealth management solution to gain a holistic view of the clients’ financial condition and valuable insights for better investment decisions
Reporting
Facilitating scheduled and ad-hoc reporting to provide users with valuable insights into investment portfolio performance, risks, and market trends to help them track the progress toward financial goals and optimize investment strategies
Global access & mobility
Providing clients with an opportunity to use your products/services from any place in the world via preferred channels like a web portal or mobile app to better cater to their needs and foster engagement and trust
News feeds
Delivering insights from reliable market data providers and financial institutions to inform wealth managers, financial advisors, and investors on the latest market trends and help them make more informed investment decisions

Client spotlight

With 15 years of experience in financial software development, Itransition has been a reliable technology partner for multiple wealth management service providers. Explore some of our success stories from our wealthtech portfolio.

Investment portfolio management ecosystem development

Billions in investments

attracted

A large US-based provider of online investment tools partnered with Itransition to develop an investment portfolio tracking and management ecosystem. The platform features custom algorithms and trading strategy tests, helping investors increase the profitability of their investments.

Trading platform software development

3x

user base growth

We helped a bond-trading service turn an MVP into a full-fledged solution consisting of two mobile apps. Our team enhanced the apps’ UX and significantly expanded their functionality, ensuring compliance with industry standards.

Cryptocurrency exchange platform development

5+ Bitcoin exchanges

in a single solution

Our team delivered a user-friendly web platform that connects end-users’ Bitcoin exchange accounts in a single interface and allows them to trade at the best exchange rates. We also migrated the project infrastructure to the cloud and set up automated infrastructure monitoring.

Investment portfolio management ecosystem development

Billions in investments

attracted

A large US-based provider of online investment tools partnered with Itransition to develop an investment portfolio tracking and management ecosystem. The platform features custom algorithms and trading strategy tests, helping investors increase the profitability of their investments.

Trading platform software development

3x

user base growth

We helped a bond-trading service turn an MVP into a full-fledged solution consisting of two mobile apps. Our team enhanced the apps’ UX and significantly expanded their functionality, ensuring compliance with industry standards.

Cryptocurrency exchange platform development

5+ Bitcoin exchanges

in a single solution

Our team delivered a user-friendly web platform that connects end-users’ Bitcoin exchange accounts in a single interface and allows them to trade at the best exchange rates. We also migrated the project infrastructure to the cloud and set up automated infrastructure monitoring.

Investment portfolio management ecosystem development

Billions in investments

attracted

A large US-based provider of online investment tools partnered with Itransition to develop an investment portfolio tracking and management ecosystem. The platform features custom algorithms and trading strategy tests, helping investors increase the profitability of their investments.

Trading platform software development

3x

user base growth

We helped a bond-trading service turn an MVP into a full-fledged solution consisting of two mobile apps. Our team enhanced the apps’ UX and significantly expanded their functionality, ensuring compliance with industry standards.

Cryptocurrency exchange platform development

5+ Bitcoin exchanges

in a single solution

Our team delivered a user-friendly web platform that connects end-users’ Bitcoin exchange accounts in a single interface and allows them to trade at the best exchange rates. We also migrated the project infrastructure to the cloud and set up automated infrastructure monitoring.

Challenges in wealth management software development

Financial data security

Wealth management software must safeguard clients’ sensitive data, such as bank account information or investment portfolio details. This way, wealth managers can meet financial regulatory requirements, build trust with clients, and prevent company reputational losses.

Companies should make sure that their wealth management apps have solid security mechanisms, including data encryption, multi-factor authentication, and intrusion detection and prevention systems. Before the solution provider deploys the app to the production environment, they should perform penetration testing. This will help prove the software has no security vulnerabilities. After the software goes live, companies should update it regularly with security patches and run regular security audits. These measures allow experts to eliminate potential weaknesses or misconfigurations.

Software integration with other systems & applications

Since wealth management involves handling data from various sources, ensuring consistent data flow to and from the wealth management platform is essential for its proper operation.

Solution providers should build robust APIs, ESBs, or suitable middleware to enable seamless data exchange between a wealth management platform, other internal systems (like CRM or accounting software), and third-party services (like market data providers). Also, wealth management firms should develop a data governance framework to ensure data quality, consistency, and availability across different systems and applications. Such a framework establishes data standards, sets up data ownership and stewardship processes, and defines data validation and verification procedures.

Ensuring compliance with regulations

If a firm fails to comply with the relevant regulations, this results in penalties and negatively affects the bottom line.

The regulatory environment in the financial industry is constantly evolving. Specific requirements can apply depending on the business and software type. These include KYC/AML regulations, SEC cybersecurity standards, and investor protection rules. The development team must be highly competent to create a wealth management solution in line with these regulations. Therefore, we recommend partnering with a trustworthy software engineering company that has a proven track record of successful fintech projects.

Market pressures

Today, wealth management companies face intense market competition and customers’ rising expectations. These factors force them to continually innovate and integrate advanced technologies into their wealth management software to improve their service offering and succeed in the market.

To future-proof wealth management software, we recommend businesses consider moving their solutions from on-premises servers to the cloud. Cloud migration ensures software scalability, flexibility, and global access for users while reducing IT infrastructure costs. Another option to address the market challenges is to build a wealth management solution on top of a reliable off-the-shelf platform. Platform providers take on the burden of integrating innovative functionality and performing software maintenance, enabling companies to drive innovations quicker and stay competitive.

Scheme title: Top most impactful GenAI applications according to wealth and asset management executives
Data source: ey.com — The transformation imperative: generative AI in wealth and asset management

9 out of 10

financial advisors believe AI can help grow their book of business organically by more than 20%

Accenture

87%

want to use more AI tools day-to-day and are willing to spend time to learn an AI-based process and tool if there’s a clear benefit

Accenture

64%

of financial services executives are planning to allocate a budget for AI in the next 6-12 months

KPMG

Key benefits & applications

Artificial intelligence algorithms can process large amounts of structured and unstructured data, helping financial advisors and wealth managers better understand their client's needs, improve investment strategies, and accelerate operations. Moreover, AI-powered solutions can provide insightful, personalized content that supports more informed decisions and creates value for all stakeholders.

Drawing on our solid AI expertise, we can program, train, and integrate AI models into your wealth management software to enhance its capabilities and deliver differentiating client experiences.

Personalized financial advisors

AI-driven robo-advisors can generate personalized investment advice based on the investor’s financial goals, time horizons, and risk tolerance, enabling wealth management companies to scale their advisory services and boost investor engagement.

Back- & middle-office automation

With the help of AI, wealth management firms can automate many time-consuming and error-prone manual processes (like portfolio rebalancing based on historical and future market changes or KYC processes with automated data analysis and fraud detection), supporting faster decision-making and allowing managers to spend more time on higher-value activities.

Risk management

By using AI to analyze historical data and market trends, financial advisors can identify potential risks, such as inflation or credit risks, and develop more resilient investment strategies.

Financial analytics & forecasting

Machine learning algorithms can find hidden patterns and correlations in vast volumes of financial and market data as well as predict investment performance and market trends, providing more accurate investment recommendations.

Sentiment analysis

NLP-powered solutions can analyze text-based sources like news articles or social media to measure public opinions and detect market fluctuations, helping wealth managers make more informed investment decisions.

Client onboarding

AI chatbots and virtual assistants can collect necessary information from new clients, introduce the platform, its capabilities, and digital tools to users, and help them select an optimal service while holding a natural, human-like conversation, thus reducing the workload on employees and improving customer experience.

Our wealth management software services

Consulting

We provide technology advisory services to help wealth management organizations conceptualize their future software solution and choose suitable technologies to build it. Our experts draw up a step-by-step software implementation plan and oversee the implementation process, helping companies navigate possible challenges.

Development & customization

Our team delivers robust wealth and investment management solutions, applying the software development methodology best suited for each case and adhering to software development best practices and secure coding guidelines recognized globally.

We can start by creating a minimum viable product (MVP) to enable businesses to enter the market faster and gather early adopters’ feedback, gradually developing the solution into a full-fledged competitive product.

Integration

We help wealth management companies integrate their software solutions into the existing IT environments and create smooth connections with third-party services to extend the software’s functionality while preserving its security.

Our wealth management software delivery process

Itransition’s fintech development team builds wealth management software end-to-end, providing regular reports and software demos to keep you updated on the project progress and ensure the product evolves in line with your vision.

1

Analysis

We analyze your wealth management business goals and end-user needs and gather the requirements for your future software.

2

Design

We outline the software’s feature set, design the architecture, determine integrations, select a suitable tech stack, and create UX/UI mock-ups.

3

Planning

We create a software development roadmap, defining the project’s scope, deliverables, timeframe, and budget, and plan development and testing activities.

4

Development

We perform platform configuration and/or customization or front-end and back-end development and set up software integrations with internal or external systems. For AI-driven software, we build and train AI models.

5

QA & testing

Our QA team performs comprehensive testing to eliminate potential bugs that can affect software performance or security and ensure that the solution meets the requirements.

6

Launch

We deploy the software to the target cloud or on-premises production environment and perform post-deployment testing to check it performs live as expected.

7

Support & maintenance

After the release, we monitor your solution’s performance, resolve issues, and make minor improvements based on your feedback to keep your software well-performing and secure.

Technologies & tools we use

Platforms
Platforms
Back-end technologies
Back-end technologies
Front-end technologies
Front-end technologies
Cloud platforms
Cloud platforms
Mobile technologies
Mobile technologies
Blockchain
Blockchain
Transform wealth management with the right software

Transform wealth management with the right software

Technology breakthroughs, growth in the number of high-net-worth individuals (HNWIs), and the shift of customer preferences toward digital channels are pushing financial advisors and wealth managers to look for tools that will streamline wealth management processes. Digital platforms allow organizations to manage assets more effectively and provide faster and more individualized services to clients. If you are ready to implement a wealth management software solution, you can rely on Itransition’s expertise in fintech software development and consulting.
Transform wealth management with the right software

Implement a reliable wealth management solution risk-free with Itransition

Get in touch

FAQs

What types of companies can use wealth management software?

Various types of companies can benefit from using wealth management software. These include investment management businesses, wealth management companies, asset management companies, financial advisory firms, hedge funds, exchange-traded funds (ETFs), investment banks, and private equity firms.

What are the benefits of wealth management software?

Dedicated solutions that streamline wealth management can benefit both software adopters and their clients.

For wealth & asset management companies:

  • Enhanced operational efficiency and cost efficiency due to automation of manual processes
  • Data-driven decisions 
  • Wider audience reach, potentially leading to customer base growth
  • Reduction of operational risks

For investors:

  • Access to diverse investment options
  • Financial goals achievement
  • Faster servicing
  • Personalized advice
  • Convenience of use with remote access 24/7

What is the difference between custom wealth management software and off-the-shelf platforms?

Custom solutions are built in accordance with the company’s needs. Therefore, custom development requires high upfront investments and a development team to handle software implementation, maintenance, and updates.

Off-the-shelf software is faster to implement as it comes with pre-built features that typically cover core business needs. Traditionally, such platforms are available upon subscription with several pricing plans.  Platform providers take care of software maintenance, deliver regular software updates, and provide support upon request. However, such systems can have a limited customization potential and imply extra costs for advanced functionality. Some examples of off-the-shelf wealth management platforms are Microsoft Cloud for Financial Services and Salesforce Financial Services Cloud.

How much does it cost to develop a wealth management app?

The final cost for wealth management app development depends on many factors, including the number and complexity of features, integrations, technology stack, and development team composition. After carefully analyzing your business needs and objectives, our experts conceptualize the solution and outline possible technology options (custom or platform-based solutions) within your budget. If you need a ballpark estimate for your project, contact our consultants.

Which deployment option should I choose?

Wealth management companies can deploy their software on-premises, in the cloud, or combine both models. Each approach serves different purposes, so organizations should choose the optimal option individually based on their needs.

Cloud deployment

  • Hosting on reputable cloud platforms like Amazon Web Services (AWS), Microsoft Azure, or Google Cloud Platform (GCP)
  • Software can be available to end-users as Software as a Service (SaaS)
  • Reduced infrastructure maintenance costs
  • Easily scalable resources to support business growth
  • Global availability

On-premises deployment

  • Wealth management software is installed and managed on the company’s internal servers
  • Meeting the company’s specific security or compliance needs
  • Full control over software infrastructure 
  • A dedicated IT team is needed to take care of software maintenance, security, and upgrades

Hybrid deployment

  • Some of the software components are hosted in the cloud, while others are maintained on-premises
  • Greater software flexibility and customizability with benefits from both models
Banking software development

Service

Banking software development

Itransition helps financial institutions drive business growth with a wide range of banking software solutions. Book your consultation.

RPA in finance:
10 use cases, benefits, and challenges

Insights

RPA in finance: 10 use cases, benefits, and challenges

Learn how RPA can help financial institutions streamline their operations and increase efficiency. Explore RPA challenges and get some implementation tips.

Mobile banking application development

Service

Mobile banking application development

Turn to Itransition’s mobile banking software developers to build, design, and implement your next bespoke customer-oriented application.

A guide to predictive analytics in finance

Insights

A guide to predictive analytics in finance

Learn how financial institutions can apply predictive analytics in finance to minimize risks, decrease operational costs, and improve their bottom lines.

Loan management solution

Case study

Loan management solution

Read how Itransition developed a platform for streamlining the entire range of back-office loan management operations.

Banking portal development for a large EU bank

Case study

Banking portal development for a large EU bank

See how Itransition handled banking portal development, redesigning an outdated internet banking app.