Wealth Management

Wealth Management Trends 2024: Driving the WealthTech Market and Beyond

8 min read

The wealth management industry is undergoing a significant transformation thanks to rapidly evolving technologies. In particular, WealthTech has enabled personalized wealth management, advanced financial planning, and robust asset management solutions, driving wealth management companies to provide more accessible, cost-effective, personalized solutions for managing wealth.

The industry has shifted towards more advanced technologies to keep up with the changing wealth management landscape. The next 8 wealth management trends 2024 reflect this shift towards technology-driven solutions, including AI-based robo-advisors, sustainable and socially responsible investing, and more.

Let's explore how WealthTech is reshaping the industry landscape and driving the future of wealth management.


According to a report by PwC, the global assets under management (AUM) are projected to reach $145.4 trillion by 2025, with a compound annual growth rate (CAGR) of 5.9%. This growth is driven by the increasing demand for wealth management services, particularly from high-net-worth individuals and families. WealthTech is playing a crucial role in meeting this demand.

But what exactly is WealthTech?

WealthTech refers to the use of technology to provide financial services and solutions for wealth management. It includes a range of tools and platforms, such as robo-advisors, digital wealth management platforms, and blockchain-enabled solutions.

Learn the difference between WealthTech and FinTech in our article down the link.

WealthTech companies drive industry transformation by leveraging cutting-edge technologies to streamline operations, enhance client experiences, and deliver comprehensive financial planning services.

The Rise of WealthTech & Its Impact on Modern Finance

The wealth management industry has experienced a significant shift with the rise of WealthTech companies. These firms combine advanced technologies, such as artificial intelligence (AI), machine learning, and data analytics, with financial expertise to provide complete wealth management solutions.

The impact of WealthTech on the wealth management industry includes:

  1. Service Democratization: WealthTech has made wealth management services more accessible and tailored to a broader audience, breaking down barriers that were once limited to high-net-worth individuals and families only. This empowers more individuals to take control of their financial future.
  2. Personalized and Tailored Services: Through the integration of data analytics and AI, wealth management firms can gain valuable insights into client behavior, preferences, and goals. This enables them to offer customized investment advice and financial planning services that align with each client's unique circumstances.
  3. Enhanced Client Experience: Digital wealth management platforms and robo-advisors provide clients with convenient and accessible ways to manage their portfolios. Clients have 24/7 online access to their investments and financial data, granting them greater control and transparency over their wealth management journey.
  4. Operational Efficiency: WealthTech automates processes and leverages advanced technologies to streamline operations, improve risk management, and deliver more cost-effective solutions to clients.
  5. Data-Driven Decision Making: The use of data analytics enables wealth management firms to make informed decisions based on insights derived from vast amounts of data. This leads to more accurate investment strategies and improved performance.
  6. Expanded Range of Services: WealthTech has expanded the range of services available to clients, including sustainable and socially responsible investing, goal-based planning, and comprehensive financial wellness tools.
  7. Regulatory Compliance: WealthTech solutions help ensure regulatory compliance by automating compliance processes, monitoring risks, and ensuring adherence to regulatory standards.
  8. Innovation and Industry Transformation: WealthTech fosters innovation in the industry, driving continuous improvement and evolution of wealth management practices to meet the changing needs of clients.

Looking ahead, WealthTech will continue to play a pivotal role in the wealth management industry. It causes new wealth management technology trends with newly-emerging innovations. Wealth management firms that embrace these technological advancements and partner with expert IT vendors for WealthTech software development will be well-positioned to thrive in this dynamic landscape.

#1 AI-Based Robo-Advisors

AI-powered robo-advisors are revolutionizing the investment landscape. These platforms leverage sophisticated algorithms to automate investment advice, portfolio management, and rebalancing. By analyzing vast amounts of data, robo-advisors provide personalized investment recommendations, optimize risk management, and deliver cost-effective wealth management services.

The Statista report states that assets under management are expected to show an annual growth rate (CAGR 2023-2027) of 14.00% by 2027. The increasing adoption of robo-advisors is driven by several factors, including the growing demand for low-cost investment solutions, the rise of digital natives, and the need for personalized investment advice.

PROs of AI-based robo-advisors:

  • More affordable, with lower fees and minimum investment requirements;
  • Streamlined investment process;
  • Personalized investment recommendations based on ML algorithms.

However, there also exist a few concerns around robo-advisors in general. One of them is the lack of human interaction, which can be a disadvantage for investors who prefer a more personalized approach. There is also the risk of algorithmic bias, where the algorithms used by robo-advisors may inadvertently discriminate against certain groups of investors. Additionally, there are concerns around data privacy and security, as robo-advisors collect and store sensitive personal and financial information.

Overall, AI-based robo-advisors are expected to have a significant impact on the wealth management industry in the coming years. As the technology continues to evolve and become more sophisticated, we can expect to see increased adoption of robo-advisors by investors and wealth management firms alike.

#2 ESG Investing

Environmental, social, and governance (ESG) investing takes into account a company's performance in areas such as environmental impact, social responsibility, and corporate governance.

ESG investing has gained significant traction in recent years, with investors increasingly looking to align their investments with their values and contribute to a more sustainable future.

In fact, a recent survey by the Morgan Stanley Institute for Sustainable Investing revealed that despite the COVID-19 pandemic, 80% of U.S. individual investors have continued to prioritize sustainable investing with 99% of millennials being interested in sustainable investing.

To facilitate ESG investing, wealth management platforms now integrate sustainability factors into their investment strategies. These platforms evaluate companies' sustainability performance using specific ESG metrics and data, enabling investors to make informed decisions that align with their values and contribute to a more sustainable future. By selecting companies with strong ESG performance, investors may also unlock potential financial benefits.

However, ESG investing is not without its challenges. One major concern is the lack of standardization in ESG metrics and data, which makes it difficult for investors to compare companies' sustainability performance accurately. Moreover, there is a risk of "greenwashing," where companies make misleading or false claims about their sustainability practices to attract ESG investors.

Despite these challenges, there’s a big demand to align investors’ investments with values and contribute to a more sustainable future. The industry continues to evolve and standardize ESG metrics and data, and we can expect greater adoption of ESG investing strategies by investors and wealth management firms.

#3 Digital Wealth Management Platforms

Digital wealth management platforms offer a range of financial planning tools and services to individuals. These platforms provide a comprehensive suite of features, including account aggregation, budgeting, investment tracking, and goal-setting, to give users a holistic view of their personal finances.

PROs of digital wealth management platforms:

  • Intuitive user interfaces and personalized recommendations;
  • Advanced algorithms and AI-based financial analysis;
  • More accessible and affordable than traditional wealth management services;
  • More options to manage finances and make more value-based investments.

Clearly, top wealth management platforms face several challenges in today's dynamic landscape. They must navigate changing business models, adapt to FinTech disruptions, meet increasing client expectations, address revenue and fee compression pressures, overcome legacy system limitations, manage data effectively, and strike a balance between digital capabilities and human interaction.

These challenges require innovative software solutions and strategic approaches to stay competitive and deliver valuable services to clients.

#4 Data & Analytics

Data and analytics play a pivotal role in wealth management, enabling firms to gain actionable insights and make data-driven decisions. Advanced analytics tools leverage big data to uncover patterns, identify trends, and assess investment performance. Wealth management companies that harness the power of data analytics can gain a competitive edge by delivering personalized services and improving investment strategies.

PROs of data analytics in wealth management:

  • Personalized services to clients by analyzing their financial data;
  • Stronger client relationships and improve client retention;
  • Better investment strategies based on market trends and performance data;
  • Data-driven investment decisions backed up with improved investment performance and better returns for clients;

However, data management can be a challenge for wealth management firms. They must balance the need for data privacy and security with the need for data accessibility and analysis. Additionally, data analytics requires advanced tech capabilities and expertise. Luckily, wealth management companies can outsource this task to the best IT experts like ElifTech.

#5 Cybersecurity and Fraud Protection

In 2024, robust cybersecurity measures will be paramount to safeguard client data, protect assets, and ensure regulatory compliance. WealthTech companies must invest in cutting-edge security solutions to mitigate cyber threats and maintain client trust.

PROs of cybersecurity and fraud protection in wealth management:

  • Protects client data from cyber threats and prevents data breaches;
  • Safeguards client assets from cyber-attacks;
  • Ensures regulatory compliance, such as GDPR and SEC;
  • Maintains client trust.

Wealth management firms face increasing cybersecurity threats and must invest in cutting-edge security solutions to protect client data, and assets, and ensure regulatory compliance. However, implementing and maintaining robust cybersecurity measures can be costly, and firms may lack the necessary expertise. What’s more, companies must balance security with convenience for clients, be vigilant about insider threats, and manage third-party risks.

Addressing these challenges requires ongoing investment in cybersecurity solutions and expertise.

#6 Compliance and Risk Management

With evolving regulations and increased scrutiny, there’s a need for comprehensive compliance and risk management solutions. WealthTech companies are leveraging technology to automate compliance processes, monitor risks, and ensure adherence to regulatory standards.

PROs of compliance and risk management in wealth management:

  • Ensures regulatory compliance;
  • Reduces the likelihood of financial harm to clients;
  • Improves operational efficiency;
  • Mitigates potential risks.

Compliance and risk management in wealth management present various challenges including complex regulations, ongoing monitoring, and updates, the need to balance compliance with operational efficiency and client experience, resource constraints, and significant costs. By addressing these challenges head-on with better technology and expertise, wealth management firms can ensure regulatory compliance while optimizing their operations and delivering exceptional client service.

#7 Sustainable and Socially Responsible Investing (SRI)

Sustainable and socially responsible investing (SRI) is a growing trend in the wealth management industry. Investors are increasingly looking for investment options that align with their values and promote positive change, while still achieving their financial goals. In 2024, wealth management firms will need to incorporate SRI strategies into their offerings to remain competitive and meet the demands of their clients.

PROs of sustainable and socially responsible investing in wealth management:

  • Aligns investments with environmental and social values;
  • Potential for financial returns;
  • Attracts and retains clients who prioritize SRI options;
  • Promotes positive change through investments.

SRI has several challenges related to limited investment options, lack of standardization, performance concerns, increased complexity, and higher fees. Addressing these challenges requires ongoing research and analysis to identify suitable investment options, a focus on balancing financial returns with environmental and social values, and a commitment to transparency and standardization in SRI strategies.

Firms that incorporate SRI strategies into their offerings are likely to be more successful in meeting the demands of their clients. By aligning investments with values, promoting positive change, and potentially achieving financial returns, SRI is a win-win for investors and wealth management firms alike.

#8 Blockchain-enabled WealthTech

Blockchain technology has the potential to revolutionize wealth management by providing secure, transparent, and efficient solutions. From streamlining transactions to facilitating asset tokenization and enabling decentralized finance (DeFi), blockchain holds tremendous promise for the industry. In 2024, we can expect increased adoption of blockchain-enabled wealth management platforms.

PROs of blockchain-enabled WealthTech:

  • Increased efficiency
  • Increased security
  • Asset tokenization
  • Fractional ownership of assets
  • Increased liquidity in the market

The challenges associated with the adoption of blockchain-enabled WealthTech include a lack of regulatory clarity, technology complexity, integration challenges, and security concerns. Blockchain technology can be complex and difficult to implement, requiring specialized knowledge and expertise. Integrating blockchain technology into existing wealth management systems can also be challenging due to significant investments in technology and infrastructure. While blockchain technology is generally considered to be secure, there is still a risk of cyber-attacks and other security breaches that could compromise client data.

Overall, by leveraging blockchain technology, wealth management firms can improve efficiency, increase security, and provide innovative solutions to their clients.

Embrace the Future of Wealth Management

As we look ahead to wealth management trends 2024, the industry is poised for significant transformation fueled by WealthTech innovations. Personalized wealth management, advanced financial planning, and sustainable investing will become the norm.

To thrive in this evolving landscape, wealth management firms must embrace these trends, leverage cutting-edge technologies, and partner with expert wealth tech companies. By staying ahead of the curve, you can unlock new opportunities, enhance client experiences, and drive business growth in the ever-changing world of wealth management.

Partner with ElifTech, the leading software development company specializing in WealthTech solutions. Reach out to us today and explore how our expertise can empower your wealth management business.

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