Wealth management software
July 11, 2024
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Senior Quantitative Analyst
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.
Financial planning software
Investment platforms
Investor portals
Client lifecycle management (CLM) systems
Trading software
Blockchain solutions
Investment accounting software
Financial analytics tools
Book of Record (BORs) systems
Streamline wealth management with efficient software
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
Know-your-customer (KYC)
Notifications & alerts
Payments
Account aggregation
Reporting
Global access & mobility
News feeds
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.
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.
AI for wealth management
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.
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
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
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
Implement a reliable wealth management solution risk-free with Itransition
FAQs
What types of companies can use wealth management software?
What are the benefits of wealth management software?
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.
Can I use Microsoft Cloud for Financial Services as a wealth management solution?
Microsoft Cloud for Financial Services offers an industry-specific data model and provides features designed specifically for wealth managers and financial advisors, including a client onboarding process and unified client profiles. With the platform, you can create a tailored wealth management solution that will enable you to deliver personalized investment experiences as well as ensure regulatory compliance.
How much does it cost to develop a wealth management app?
Which deployment option should I choose?
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
Service
Banking software development
Itransition helps financial institutions drive business growth with a wide range of banking software solutions. Book your consultation.
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