July 11, 2024
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
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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
financial advisors believe AI can help grow their book of business organically by more than 20%
Accenture
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
of financial services executives are planning to allocate a budget for AI in the next 6-12 months
KPMG
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.
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.
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.
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.
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.
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 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.
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.
Analysis
We analyze your wealth management business goals and end-user needs and gather the requirements for your future software.
Design
We outline the software’s feature set, design the architecture, determine integrations, select a suitable tech stack, and create UX/UI mock-ups.
Planning
We create a software development roadmap, defining the project’s scope, deliverables, timeframe, and budget, and plan development and testing activities.
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.
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.
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.
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.
For wealth & asset management companies:
For investors:
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.
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.
Cloud deployment
On-premises deployment
Hybrid deployment
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