The technological revolution of wealth management

From communication and productivity to shopping and entertainment, technology has become integral to our daily lives, and it is transforming industries across the board – including wealth management. As clients increasingly expect digital-first services, more advisors than ever are preparing to adopt new solutions and allocate higher budgets to tech tools in the coming year.

Leveraging the right tools can give advisors a distinct edge in an increasingly competitive space by enabling them to offer more comprehensive services, streamline operations, and access previously untapped markets. Firms that fail to integrate the latest technologies risk falling behind in an industry where innovation is key to staying relevant. Conversely, expanding one’s tech stack and utilizing new software can make all the difference in transforming good service to exceptional results.

The digital transformation of client expectations 

In today’s digital age, clients expect financial advice that is not only convenient, but tailored to their unique needs, goals, and life circumstances. According to a recent Envestnet study, the top value for clients is their advisors’ ability to provide personalized management, including on retirement accounts. At a time when information is always at one’s fingertips, clients demand immediate access to their data, such as up-to-date performance metrics and detailed analytics. In fact, an Avaloq survey found that one-quarter of savers would consider moving away from a wealth manager if they don’t modernize their services, and the majority of clients say that having access to their own analytics is essential to building trust with their advisor. 

For advisors, this means embracing generative artificial intelligence and big data as critical tools to deliver on these expectations. These technologies have the power to transform decision-making, personalization, and productivity. A survey by Black Diamond found that 91% of wealth firms plan to adopt new tech in 2025 to better service clients and support compliance efforts, and 79% predict an increase in their tech budget. Advisors can expect to see software additions involving cybersecurity, client attraction, portfolio insights, digital workflow automation, and financial planning tools. Of these enhancements, advisors believe AI is likely to have the biggest impact on wealth management in the next five years, followed by regulatory compliance, and cybersecurity solutions.

AI & big data: Greater efficiency, smarter decisions

AI-powered technology can analyze vast amounts of financial data in real time, delivering actionable insights and personalized high-net-worth-style advice at scale – servicing a largely mass-affluent market that is still untapped. For instance, predictive analytics tools that forecast trends, copilots that eliminate manual tasks, and portfolio management tools that analyze clients’ risk tolerance, goals, and overall market conditions, are becoming ubiquitous and increasingly saving time for advisors. 

Meanwhile, big data – extremely vast data sets that can only be analyzed computationally – enables advisors to uncover patterns and predict market trends, enhancing decision-making for both clients and advisors alike. Having access to these robust insights allows advisors to predict savings shortfalls and optimize tax strategies to help close those gaps. 

Advisors already recognize the value these technologies add, according to a new study by PwC. Eighty-four percent of advisors say these innovative solutions fuel operational efficiency, with almost as many citing these tech tools’ contribution to revenue growth and employee productivity. Deloitte showed that firms using AI reported an 8% increase in AUM and 14% increase in productivity

Bridging the advice gap and unlocking retirement potential 

One area that stands to benefit from third-party software is retirement planning. 
Retirement savings represent one of the largest assets for U.S. workers, making it crucial for financial advisors to give these accounts the attention they deserve. Without proper management, clients risk missing out on growth opportunities, and advisors can forgo valuable business potential. While retirement savers have long demanded personalized advice on their workplace retirement accounts, artificial barriers that separate investment accounts from retirement plans that sit in trusts have prevented advisors from being able to view or analyze these accounts. Some digital tools address these complexities, yet they’ve fallen short in offering advisors the ability to provide holistic management.

Solutions like Pontera are filling that gap by enabling advisors to actively manage workplace retirement accounts while ensuring full compliance with regulatory measures. The client-permissioned platform allows advisors to analyze, rebalance, and report on retirement plan accounts, empowering advisors to deliver holistic financial guidance. By integrating wealth management and retirement planning, advisors can optimize clients' portfolios, expand their practice, and enhance service offerings.

It’s imperative for wealth management firms to adapt their technology stacks in order to retain a competitive edge in a crowded marketplace. Deloitte calls on tech leaders to drive change in the wealth industry by equipping advisors with disruptive tools. In a time where technology is rapidly advancing and uncertainty is a constant – and as we can expect a greater shift in preferences from a younger generation of savers who are accustomed to pervasive technology and on-demand information – the need for firms to catch up only intensifies. By integrating the right solutions, advisors can better help clients achieve their financial goals and deliver the personalized experiences they desire – while also future-proofing their business to drive growth and ensure long-term success.

Learn more about holistic portfolio management through Pontera at pontera.com