Wealth Management

Exploring Different Types of Wealth Management Software Solutions

13 min read

Both businesses and individuals face ever-increasing financial demands that modern wealth management software solutions may target directly. Today’s disruptive changes in the investment industry, fueled by social, digital, and economic changes, create a vast opportunity for investors and customers to manage wealth in a few clicks without requiring in-depth knowledge of investment rules. Sounds pretty good to be true? Well, let our experts reveal some research findings for you.

In this blog post, we delve into the intricacies of these innovative tools, exploring the reasons behind their success, their various types in different contexts, and the key features that receive high ratings. So, without further ado, let’s dive in.


Perks of Wealth Management Software Solutions in the Digital Age

In a recent research study conducted by ThoughtLab, the concept of digital leadership in the wealth and asset management industry was explored. The study revealed that a significant percentage of surveyed firms, specifically 53%, have made notable advancements in digital innovation within the wealth and asset management sector. This demonstrates a growing recognition and adoption of technology-driven solutions within the industry.

Figure 1. Digital Leadership in the Wealth and Asset Management Industry


Furthermore, the research findings indicate that 20% of these firms have already achieved a return on investment (ROI) from their digital initiatives.

The picture below, from the very same study (Figure 2), vividly demonstrates the impact of digital innovations on wealth and asset management firms. As these companies embrace digital transformation, they experience significant improvements in key performance indicators, which increases the value of their business compared to other competitors. This suggests that embracing digital transformation and leveraging technology in wealth and asset management can yield tangible benefits and positive outcomes.

Figure 2. Impact of Digital Innovations on Wealth and Asset Management Firms


Areas Where Wealth Management Software Can Help Improve Your Financial Planning

Wealth management software offers a range of benefits that make it an invaluable tool for investors. For example, financial planning tools inside the wealth management platforms can analyze income, expenses, and investments to provide personalized recommendations to help individuals reach their financial goals faster. The wealth management system relies on advanced algorithms and different financial data resources to offer a holistic view of their financial situation and help develop personalized financial strategies tailored to their needs. In other words, it's like having a wise friend who is well-versed in finance.

Moreover, wealth management software solutions foster wise asset allocation by taking into account risk tolerance, investment objectives, and market conditions to optimize investors’ portfolios and ensure diversification. With automatic rebalancing features, the software helps individuals maintain proper asset allocation, saving time and effort on manual adjustments.

Wealth management software also makes asset management effortless and efficient. These solutions offer an integrated platform for effective asset management through investment management, performance tracking, detailed reporting, and integration of all financial accounts in one place. The software keeps everything organized and provides easy access to stocks, bonds, real estate, or other investment vehicles. Thus, investors no longer need to dig through piles of papers or open various applications.

Another thing this software can help with is estate management. Individuals and businesses can create and update their trusts, wills, and other estate planning papers using these tools. The software ensures your wishes are accurately documented and easily accessed, keeping all relevant information secure.

Investment management solutions also take the stress out of paying taxes by automating various tax-related calculations and generating accurate reports. Automated tax accounting helps create tax forms and reports, calculates capital gains and losses, and keeps track of non-taxable expenses. In fact, it's like having a personal accountant without huge fees.

However, the actual value here extends far beyond its tangible technical benefits. Just imagine a financial advisor used to spending hours analyzing numbers, researching investments, and keeping their records up to date. With wealth management software, all that becomes unnecessary and time-consuming because this financial tool does all the hard work for you.

By leveraging a combination of financial data sources and advanced algorithms, this software saves investors significant time, money, and effort. It becomes their financial advisor, preparing customized financial plans aligning with individual needs, goals, and comfort risk levels.

Common Features in Wealth Management Software

There are many ways wealth management software can ease the heavy burden of proactive financial management. It has changed how investors approach holistic planning, altered the nature of personal relationships with advisors through digital platforms, and influenced behavior towards more proactive wealth decisions. The following are some essential features that are typically available in wealth management software:

  • Financial planning. With financial planning tools, companies dealing with FinTech can get their finances on track all the time. Being a fundamental aspect of the wealth management system, it helps assess an individual's financial goals, current assets, income, and expenses to develop a comprehensive plan for achieving short- and long-term goals – whether it’s debt management, budgeting, or investment planning. A well-written financial plan provides a well-thought-out roadmap that allows individuals to accumulate wealth, achieve financial goals, and move through the various life stages.
  • Accounting services. Account tracking of financial transactions keeps numbers always in check. Instead of wasting time on manual calculations and reports, you can focus on increasing your wealth, and built-in accounting services will do it for you with high accuracy. These digital tax experts provide a range of services including bookkeeping, financial statement preparation, tax planning, and compliance. Thus, with organized financial reporting at hand, individuals can track their financial health, optimize tax strategies, and ensure strict regulatory compliance with applicable tax laws.
  • Asset allocation. If you want to find the right balance when it comes to spreading your investments across different types like stocks, bonds, and real estate, welcome the innovative asset allocation options. Asset management plays a crucial role in managing risk and optimizing returns by aligning an individual's goals, time horizon, and risk tolerance. Proper asset allocation helps diversify investment portfolios, minimize the effects of market volatility, and maximize long-term returns.
  • Asset management. Consistent growth and capital preservation are clients' goals for effective asset management. Asset management tools help actively manage investment portfolios, monitor market trends, and make smart investment decisions. In turn, asset managers can use a variety of tactics, including choosing individual stocks, using mutual funds or exchange-traded funds (ETFs), and putting risk management procedures into practice.
  • Estate and legal planning. Worries about the financial future can easily disappear with early and secure estate and legal planning. As a result, people can confidently plan their futures by creating wills, trusts, and powers of attorney to ensure that their assets are transferred according to their wishes. As a result, estate planning ensures the smooth transfer of wealth by lowering property taxes, protecting assets from creditors, and securing future generations.
  • Tax accounting. The main objectives of tax accounting are to optimize tax strategies and ensure compliance with relevant tax regulations. So, this feature is convenient for keeping hard-earned money. Tax accounting tool examines deductions, credits, and exemptions and prepares tax returns after reviewing the tax implications. In this way, individuals can reduce their tax liability, increase tax-efficient investments, and take advantage of tax incentives through tax planning tactics.
  • Risk mitigation. Advanced machine algorithms embedded into wealth management systems can help investors save individual wealth. For example, they assess the risks associated with financial investments, insurance coverage, liabilities, and business ventures. This way, individuals can protect their money and reduce potential financial losses using diversification, insurance preparation, and asset protection measures.
  • Stock options planning and advice. Stock option planning and advice are primarily intended for those who receive stock options as a part of compensation for their job. Stock option planning is specifically designed to assist individuals in making informed decisions that maximize the value of their stock options. This type of wealth management involves three key aspects: calculating the value of stock options, understanding the tax implications, and developing strategies to optimize the exercise or sale of options.
  • Insurance advice. When it comes to safeguarding what matters most, auto-generated insurance advice is precious. It helps protect individuals and their assets from unexpected events. Insurance advice involves evaluating the types of coverage needed, such as life, health, property, and liability insurance. Individuals can minimize financial risks and safeguard their wealth by getting the right insurance plans and ensuring sufficient coverage.
  • Investment advice. These tools help investors make informed decisions, align their investments with their goals, and grow their wealth. They provide guidance on investment opportunities, strategies, and portfolio management. With individual guidance from expert wealth managers, investors can analyze market trends, select suitable investment products, and mitigate risks effectively.

Exploring Different Types of Wealth Management Software Solutions

The different types of money management have given rise to various asset management software solutions developed to meet specific needs. By leveraging these tools, individuals can not only manage their investments but plan for retirement and build wealth over time. We’ve identified five primary types that need to be mentioned.

Robo Advisor

These automated platforms make the best use of intelligent algorithms and artificial intelligence to provide investment advice and manage portfolios based on individual inputs (risk tolerance, goals, investment horizon, etc.). Unlike traditional human consultants, robo advisors offer lower fees, automatic rebalancing, diversified portfolios, 24/7 access to portfolio management, and the convenience of using it on the go.

Example: Betterment
Betterment is an excellent example of a robo advisor that is known for its user-friendly interface, low-cost fee structure, and tax-efficient investing strategies. Betterment's advanced technology automates portfolio construction, rebalancing, and tax-loss harvesting, allowing investors to access professional investment management services without extensive human interaction.

Robo advisor: Betterment
Robo Advisor: Betterment 

Investment Portfolio Management Apps

Simply put, with the help of smart devices, investment management solutions enable people to put money to work and make a profit. By accessing mobile applications, individuals can track and manage their investment portfolios, monitor performance, and receive real-time updates.

With user-friendly interfaces that simplify portfolio management, investors can review asset allocations, analyze performance metrics, and make informed decisions on the go. Moreover, some portfolio management apps also offer financial goal setting, risk assessment, and investment research resources.

Example: Mint
One standout example of an investment portfolio management app is Mint. Mint offers a comprehensive suite of financial management tools, including portfolio tracking capabilities. Users can link their investment accounts, track performance, and get a holistic view of their overall financial picture. The application offers customized insights and recommendations to aid users in optimizing their portfolios according to their financial objectives. Mint's user-friendly interface simplifies navigation, allowing users to track investments and analyze performance metrics with ease.

Investment Portfolio Management App: Mint

Online Brokerage Services

Online brokerage services empower investors with ease and flexibility to take control of their financial decisions. These services grant access to a broad spectrum of trading and investment options, including real-time market data, research resources, and order execution tools. Some advanced online brokerage examples offer investment research tools, educational materials, and financial advisory services.

Examples: E-Trade
ETRADE is another example of an online brokerage service. In addition to trading and investing, ETRADE offers retirement accounts, individual brokerage accounts, and managed investment portfolios for its customers. ETRADE offers a comprehensive trading platform and top-notch research tools to support customers in making well-informed investment decisions. Its research offerings include stock and bond screeners, market analysis, and investment commentary.

Online Brokerage Service: E-Trade

Robo Retirement Solutions

Retirement planners who want to plan their financial future can now benefit from robotic retirement solutions. To access this software, they must first enter their age, desired retirement age, retirement goals, risk tolerance, current income and savings, and expected expenses.

After that, this solution will guide personalized retirement planning. It will generate forecasts and simulations to visualize various scenarios and help users adjust their savings and investment strategies accordingly.

Moreover, these automated solutions often guide asset allocation, contribution amounts, and retirement income withdrawal strategies. In such a way, with the software’s comprehensive retirement planning features, individuals can plan their golden years with confidence and make the necessary adjustments to secure their future.

Example: Wealthfront
Wealthfront is a leading example of a robo advisor that offers automated retirement solutions. When it comes to retirement planning, Wealthfront's platform takes into account various factors such as age, desired retirement age, retirement goals, risk tolerance, current income, savings, and expected expenses. With this information, Wealthfront generates personalized retirement planning forecasts and simulations.

Robo Retirement Solution: Wealthfront

Micro-Investment Software

These platforms enable users to make small investments in diversified portfolios, offering automatic portfolio management and the opportunity to start investing with limited funds.

The main benefit is that investors don't need to be familiar with investment regulations. Through these micro-investment apps, they can make small-scale investments according to their preferred investment approach upon logging into the app. Micro-investing software often uses fractional shares and auto-investing features, making it accessible to a broader range of investors.

Some micro-investment apps also have savings options that automatically invest spare change from everyday purchases.

Examples: Plynk
Plynk is an example of a micro-investment app that allows users to make small investments in diversified portfolios. This type of software simplifies the investment process and enables individuals to start investing with limited funds. Plynk focuses on providing automatic portfolio management, making it easier for users to diversify their investments without needing in-depth knowledge of investment regulations.

Micro-Investment App: Plynk

Regardless of the situation, finding the perfect software solution to suit your financial goals and preferences requires comparing different options in terms of features, cost, and reputation. We are here to provide our expertise to analyze your business scenario and determine the best wealth management software solution that suits your needs. Look through our Research and Development services to explore your options further.

Must-Have Components for Cutting-Edge Wealth Management Software

When it comes to considering wealth management software development, we recommend looking for features that grab the maximum attention of target users. Therefore, we’ve prepared a list of the most demanded features for today.

User-friendly interfaces

Dealing with complex financial data can easily overwhelm and confuse the majority of users. According to Deloitte research, “The user experience is crucial for successful client interaction.” We support this point and think designing user-friendly interfaces is paramount to avoid bad experiences.

Visual simplicity, clear navigation, consistent style, accessibility, and customization are the five pillars on which the design of wealth management software solutions is based. The core rule here is that users should be able to navigate and access the desired information effortlessly and efficiently.

Comprehensive reporting capabilities

Full real-time reporting capabilities are the next must-have feature to allow users to experience the benefits of automated solutions. As Deloitte has noted in recent research, “With high-net-worth clients demanding more transparent, accurate, holistic, clear, real-time reporting, regulators are pressuring financial firms to provide more detailed reporting to their clients. ” Generating detailed reports enables users to view portfolio performance, investment analysis, asset allocation, and other financial metrics. This feature aids in decision-making and tracking progress effectively.

Security measures

Security and confidentiality of sensitive financial data is always a question of primary concern. The most standard security measures for wealth management software solutions can include data encryption during transmission and storage, secure login procedures, regular security audits, and adherence to industry-standard security protocols.

Compatibility with multiple devices

Compatibility with multiple devices ensures flexibility and convenience for users. Moreover, it can become a part of your comprehensive customer retention strategy. Individuals should be able to easily monitor and manage their portfolios across various platforms, whether they use the app on a desktop, laptop, tablet, or smartphone. This will help them stay connected and make decisions quickly.

Smooth integration with other financial tools

Seamless integration with other financial tools can significantly increase the demand for particular wealth management solutions in the market. A comprehensive, integrated suite of financial tools enhances efficiency and streamlines workflows.

For example, users of wealth management software will be able to track account balances and transaction information through connectivity to banking platforms. Tax planning, financial reporting, and accounting activities can be simplified through integration with tax software or accounting systems. All mentioned provide a holistic view of an individual's financial picture and contribute to an improved user experience.

Choose ElifTech for Developing Cutting-Edge Wealth Management Software

ElifTech is a technology partner you can rely on when building the best wealth management software. Our team has a well-established track record of designing and delivering innovative, highly scalable, and secure fintech applications.

We prioritize the creation of robust, reliable software that can uphold the demands of contemporary wealth management. Our team's experience and expertise ensure that your fintech applications will be both innovative and secure. To accomplish this, we stay updated with modern technological trends and innovations while analyzing users’ current expectations from such software.

To simultaneously satisfy all technical, client, and user requirements during wealth management software development, we give priority to the following:

  • Compliance with industry regulations. Our team of experts ensures that the wealth management software solutions we develop adhere to the highest security standards, data protection, and regulatory requirements (such as GDPR, AML, KYC, FINRA, etc.). You can trust that your software will meet all the necessary compliance guidelines, providing you and your users - peace of mind.
  • Compatibility with various devices. We take pride in developing wealth management software that runs on different devices. Our solutions are created with the goal of providing a smooth and seamless user experience across multiple platforms, catering to the diverse preferences of users who might access it through desktops, laptops, tablets, or smartphones. This versatility means that your customers can easily access their portfolios
  • Integration with other financial tools and platforms. We prioritize integration in our software solutions as it is critical to modern wealth management. Our team has experience integrating wealth management platforms with various platforms and tools used in the financial industry, including third-party APIs, accounting software, and banking systems. This integration enables a holistic approach to wealth management, providing a comprehensive view of your customers’ financial landscape.
  • Comprehensive reporting capabilities. With the advanced reporting features built into our wealth management software solutions, users can generate detailed reports on a variety of topics, including portfolio performance, asset allocation, risk analysis, and more. These documents contain helpful information to guide their investment strategy and help them make fact-based decisions.

When you decide to work with ElifTech as your development partner, you can expect a transparent and collaborative process. We will diligently work to understand your requirements, ensuring the final product meets your vision and goals. Our team of experienced developers, designers, and project managers is deeply committed to delivering top-notch solutions that are tailored to meet your unique business needs and available resources. We understand that one size doesn't fit all, and we work closely with our clients to ensure that our solutions are comprehensive, seamless, and aligned with their business goals. We invite you to book a call with ElifTech experts to learn more about how our team can assist you.

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