digitalization in wealth management

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Digital wealth management, or digitalization in wealth management, to put it briefly, is the process of offering a variety of consumers digital financial and investment services through the use of financial technology, big data, artificial intelligence, and risk management.

From top analysts’ and researchers’ surveys, worldwide, 51% of customers expect to utilize digital tools even more in the future; this percentage is higher among millennials (78%) and customers in Latin America (74%) and Asia-Pacific (64%). One in two wealthy clients intends to communicate with their advisors more remotely. In this case, age is crucial, with millennials being twice as eager to hear counsel online as baby boomers. Even advisor-led wealth models are beginning to feel the effects of growing adoption. 37% of clients who like advisor-led interactions intend to increase their usage of digital tools in the future.

Digital wealth management is positioned to democratize finance by making investment solutions accessible to entire populations via a website or an app, much like decentralized finance (DeFi). Anyone looking to start saving for the future has access to investing alternatives, frequently starting at just €1 (or equivalent), as with new savings plans provided by Scalable Capital.

Let’s go deeper into the complete process of digitalization in wealth management and what are the key factors that contribute to digitalization in wealth management, beneficial features, current technology upgradation like wealth management software and other wealth management technology solutions, and its impact on digitization in wealth management.

Key Factors Contributing to Digitalization in Wealth Management

To enable technology and expertise that will increase customer engagement and maximize business performance, fintech firms are bringing new capabilities and approaches to the table. The main forces behind wealth management’s digital transition are listed below.

Transition to Digital – According to numerous surveys, 80% of modern investors prefer using mobile applications to monitor their investments and connect with advisors, and 40% of investors now demand digital access to their accounts.

Pressure on fees and costs – While the enormous assault of regulatory requirements drives up expenses in the traditional business model, transparency about fees and remuneration drives down rates.

Effective Competition tactics – By offering more individualized and effective digital experiences that meet shifting customer expectations, digital wealth management firms pose numerous challenges to the conventional wealth management model.

Technology Impact – Technology fosters new capabilities through mobile interaction, analytics, and service delivery.

 Providing a consistent context for communications across channels improves access to data sources that are not readily available in everyday business processes.

Along with leadership, people, agility, business integration, ecosystem, and value created from data, other crucial components appear to be what make digital transformation projects successful.

Complete Beneficial Features of Digitization In Wealth Management

The following are some key beneficial features involved in wealth management technology solutions so where digital technology can revolutionize wealth management across all industry segments:

  • Automaticity and self-service – Customers who have simple questions about their accounts frequently prefer getting answers immediately over the phone or online. Digital chatbots are one effective method for doing this.
  • Portfolio suggestions – Wealth managers can assess client portfolios automatically and suggest appropriate changes to achieve set goals using digital technology such as machine learning.
  • Access to outside knowledge – New digital platforms built on open standards make combining existing apps with external data suppliers simpler and quicker. This provides clients of wealth Management with greater information about their investments.
  • Keep full control of your client connections – Portfolio managers give comprehensive financial advice to their clients to help them increase and safeguard their wealth. Providing guidance goes beyond making suggestions regarding a client’s investments or preparing a financial plan. Wealth managers typically work with customers with a larger net worth than financial planners.
  • Deliver dependable guidance across all channels – Creating unified client experiences across all user devices and platforms is the goal of digital wealth management, which refers to the digital tools used by seasoned financial advisers.
  • Streamline Processes – It means streamlining the processes while managing several complex investment programs from a single solution.

Current Technolgy Upgradation In Digitalization of Wealth Management

  • Implementation of Blockchain Technology -To preserve transparency and secrecy, businesses can divide internal and external blockchain systems using blockchain technology. Additionally, it offers various advantages like security, cost savings, smart contracts, and privacy protection.
  • The use of AI and machine learning in wealth management – Interactive dashboards based on AI-enabled wealth management software give you these insights. For better decision-making, ML may also automatically generate financial reports.
  • Applying cloud computing in wealth management software– Cloud storage systems reduce the cost of the wealth management companies’ significant expenditures in data storage infrastructure while enhancing security and protecting the confidentiality of their customer’s data. Additionally, it offers subscription alternatives so that wealth management companies can select the best SaaS based on their particular company requirements.
  • Wealth Management Software – Software for wealth management, commonly known as investment portfolio management software, keeps track of and maintains investor portfolios. Financial professionals utilize these portfolio management systems to create, monitor and manage their clients’ investment portfolios. Some notable digital wealth management software solutions includes:
  • Bonsai
  • Mint
  • Honeydue
  • Mvelopes
  • Personal Capital
  • FutureAdvisor
  • Money Dashboard
  • Moneydance
  • From 2022 onwards, businesses will fight for customers in the burgeoning High-Net-Worth investor and female client sectors, and on the next wave of development in goods like digital assets, ESG, and custom indexing as in service models like holistic counseling, digital engagement, and fee modernization.


Financial advisors can scale their solutions to reach more clients owing to digital wealth management and wealth management software, which gives them the digital tools they need to create seamless client experiences across all devices and platforms. Financial services companies may now share data-driven insights with advisors to boost engagement and solidify relationships thanks to the digitization of the sector.

If your organization needs customized wealth management software, reach out to Hexaview Technologies – a leading FinTech software development company delivering high-end products and solutions to clients globally.

By James Wilson

James Wilson is a technical blogger who loves to share his technical knowledge and expertise. He can be seen writing blogs and sharing it on different websites and platform. He is currently working as Senior Application Engineer at Hexaview Technologies.

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