What’s Driving Wealth Management Trends for 2024

WealthTech | Jan 9, 2024

Image: Unsplash/Morgan Housel

The wealth management industry in 2024 is at the cusp of a revolution, driven by technological advancements and changing investor expectations.

The wealth management industry is witnessing several key and game-changing innovations that are shaping its landscape in 2024. Here’s a summary of the most significant trends and developments.

Integration and Expansion of WealthTech Platforms

One of the most significant trends is the integration and expansion of WealthTech platforms. Altruist, for instance, has added new integrations with various portfolio accounting, CRM, analytics, and financial planning software. This expansion is not just enhancing the capabilities of wealth management firms but also making them more efficient and versatile.

Public Market Funding for WealthTech

2024 also witnesses a shift in how wealth technology firms approach funding. Apex Fintech Solutions‘ move to file for an IPO represents a significant development. This could lead to more rapid innovation in the sector, as public market funding offers a new avenue for growth and development in wealth technology.

Blockchain and Distributed Ledger Technology

The launch of Tokenbridge, a distributed ledger technology startup, is a development to watch. This technology could revolutionize asset and data management in the wealth and fund management industries, offering more secure and efficient transaction and data management systems.

Advancements in Asset Tracking

Addepar‘s achievement of tracking $5 trillion in assets signifies the growing importance and capability of wealth management platforms in handling large-scale asset management efficiently. This milestone reflects the industry’s increasing reliance on technology for asset tracking and management.

Direct Indexing and ETF Innovations

Direct indexing and actively managed ETFs are changing the competitive landscape in investment management. These innovations offer more personalized investment options, catering to the evolving needs of investors who seek more control and customization in their investment strategies.

Customer-Centric Approaches

The industry is also seeing a shift towards customer-centricity in investment vehicles and portfolios. Understanding the target investor and offering diverse investment options tailored to their preferences is becoming increasingly important. This approach is predicated on knowing the types of investments investors want and how they prefer to interact with their investments and investment managers.

Insights from Deloitte’s 2024 Investment Management Outlook

Deloitte’s report adds several critical dimensions to our understanding of the wealth management landscape in 2024:

Firms are expected to invest in technology and associated controls to meet client expectations and achieve internal efficiency goals, even amid weak performance and margin pressures.  However, there’s a consistent decline in the percentage of firms expecting a large increase in tech spending in key areas like AI and Cybersecurity (see Figure 3 below).

There is a growing trend towards theme-driven portfolio construction, offering new avenues for product development.

See:  Award-winning Investment App, Webull, Expands to Canada

The implementation of generative AI is transforming customer interactions, requiring collaboration across various organizational domains.  Yet, see:  Can AI Truly Replace Human Financial Advisors?

Quantum computing technologies are being considered for revenue generation, but they also pose cybersecurity threats that need to be addressed.

Aligning the workforce with the firm’s sense of purpose is becoming crucial for navigating organizational changes, leading to improvements in efficiency, productivity, and collaboration.

Image: Deloitte, Center for Financial Services, 2024 Investment Outlook

Other Insights by CapIntel in Collaboration with Vivaldi Research (more)

Clients primarily seek financial advisors due to time constraints, the complexity of investing, or for validation of their choices. They value personalization, convenience, and efficiency in financial planning.

Investors want more decision-making tools, future scenario visualization, and active participation.  They prefer a partnership role in their advisory meetings.

See:  WealthTech in Asia-Pacific: A Trillion-Dollar Opportunity

There is a growing demand for visually engaging, credible digital experiences. Advisors recognize the importance of meeting these expectations to build trust through transparency and investor education.

The use of technology as a solution in addressing these challenges enhances transparency, enables proactive communication, and provides better access to data and proposals, all crucial for building trust.

Conclusion

The wealth management industry in 2024 is characterized by a blend of technological innovation, a deeper understanding of investor needs, and a strategic approach to organizational and operational challenges. From the integration of WealthTech platforms to the advent of quantum computing and AI, these developments are reshaping the industry, setting new standards for efficiency, personalization, and security in wealth management.

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada’s Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

• SEO Powered Content & PR Distribution. Get Amplified Today.
• PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
• PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
• PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
• PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
• Source: https://ncfacanada.org/whats-driving-wealth-management-trends-for-2024/