As we approach 2024, the landscape of investment is evolving rapidly. Ralf Heim, the Founder & Co-CEO of Fincite, shares his expertise on technological trends reshaping wealth management. This article delves into:
Drawing on experiences and conversations with clients and industry experts, this article provides practical, actionable insights for wealth advisors and technology enthusiasts.
Software as a Service (SaaS) offers significant benefits to wealth management, from modernizing user experiences to reducing costs and adapting swiftly to market shifts. Recent years have revealed a surprising trend: numerous clients are embracing cloud-based solutions as their primary foray into core business operations, even in sectors traditionally dominated by on-premises software.
The rise of Low Code technology allows non-developers to customize software, bridging the gap between unique business requirements and standard solutions. This trend is set to widen the gap between outdated software and modern, user-friendly SaaS solutions.
In the world of wealth management, AI is being adopted cautiously, employing a 'Double Sandbox' strategy for safe and regulated use. While AI is increasingly used in front-office operations, its direct interaction with customers is expected to remain minimal in 2024.
The complexity of portfolio management has escalated, influenced by factors like alternative assets and geopolitical shifts. This complexity necessitates enhanced knowledge, processes, and technology for effective management and reporting.
The financial sector is witnessing a resurgence of regulatory changes, impacting everything from crypto assets to outsourcing. This necessitates a more robust response from banks and financial institutions.
The fluctuating interest rates have significantly altered the power dynamics within the industry, affecting budgets for technology and personnel. This trend is expected to continue through 2024.
There's a growing trend of combining services like custody and SaaS for more comprehensive solutions. This rebundling offers financial institutions opportunities for diversification and strengthening their market position.
The key trends for 2024 in wealth management technology signal a transformative era. These developments represent a collective shift towards a more agile, tech-savvy, and client-focused future in wealth management.