4 Wealth and Asset Management Technology Trends

In an environment of constant change and disruption, our dependence on technology is in focus more than ever. With remote work here to stay and other influencing factors, it’s likely to remain that way. Here we’ll cover four evolving trends we’re seeing emerge in wealth and asset management. We hope it gives you insight into how the sector may move forward.

Trend 1— Millennials are shaping the new workforce and driving technology preferences and adoption, which is good for business.

As more Millennials take on leadership roles, they’ll have high expectations of technology and its ability to provide “anytime, anywhere” access to information. Since accessibility and flexibility are inherent in cloud-based technology, it efficiently provides information needed to make key decisions. Add to that prevention of data loss, security, scalability, and lower cost of ownership and cloud ERP and other cloud-based solutions become especially appealing.

Trend 2—Wealth and asset management companies will turn to innovative technologies to provide value-added services, helping them sustain growth.

The pace of digitalization is set by the need to innovate. Today, major influencing factors driving innovation include evolving customer demands, pressure to streamline operations, and unforeseen events (like COVID-19).

More than just improving business functions, digital innovation helps finance leaders stand out to core audiences. Traditional investment firms with manual processes can transform themselves by using new technologies to meet ever-evolving market demands. These innovations help companies distinguish themselves as up-to-speed with new and emerging tools and technologies.

In today’s wealth and asset management landscape, connectiveness of systems is a must. Best-in-class firms ensure valuable data in each system doesn’t live in a silo, but rather leverage open APIs to allow valuable insights to flow seamlessly.

Trend 3—There will be rise in the sharing economy as consumers place more trust in technology and increase use of peer-to-peer service models.

Simply put, the sharing economy is the exchange of assets or services between consumers, both peer-to-peer or business-to-business (think Lending Tree or Venmo). It’s not only one of the fastest-growing industry trends ever, it’s reshaping the wealth and asset management industry by allowing firms to deliver value beyond traditional methods.

The sharing economy is taking hold as customers realize they have more options on the digital front and place more trust into companies that emphasize the use of technology in service delivery.

Previously firms had to spend thousands of dollars to purchase software that was installed on their own servers. Now they can tap into world-class cloud-based software that doesn’t require a large upfront investment and is accessible from anywhere.

Trend 4—As partnerships and integrations provide a one-stop-shop for investors, new wealth and asset management business models will emerge.

Consolidating services to offer customers a one-stop-shop has become another growing movement. Wealth and asset management firms are partnering to integrate services in managed investing, lending, checking, retirement, and others. This trend makes it more important than ever to be able to aggregate, manage, and analyze data from various sources.

Digital Transformation Adoption

While these are the trends we are seeing today, technology will continue to drive constant change. It creates higher consumer expectations and competitive pressures which drive innovation in ways of delivering value. While nearly everyone agrees on the importance of making digital investments, many acknowledge they have gaps to bridge.

Sage Intacct ERP and Business Management Solutions for Wealth and Asset Management Firms

Sage ERP and business management solutions meet the diverse challenges of wealth and asset management firms. From complex portfolio management and investment planning—to legacy guidance and office administration. Learn more.