What is Next for Digital Wealth Management?

4 minute

The wealth management industry is constantly evolving, and it is important for investors and financial advisors to stay up-to-date on the latest trends and developments. In this article, let’s take a look at what we think will be the top wealth management trends in 2023. From the continued rise of robo-advisors to an increased focus on the Social and Governance aspects of ESG, these trends will change the way wealth is managed and invested in the coming years.

Increased adoption of robo-advisors

According to a study conducted by Deloitte, the assets managed by robo-advisors globally are expected to reach $16.0 trillion by 2025, which would make robo-advisors the biggest asset managers in the world. Privé’s technology is already used by some of Europe’s leading robo-advisors, such as the award-winning Solidvest by DJE Kapital.

Personalization of investment portfolios

Digital wealth management platforms are using data and machine learning algorithms to offer personalized investment portfolios based on individual investor risk tolerance and goals. For example, a survey conducted by the consulting firm Accenture found that 60% of digital wealth management firms in North America now use some form of artificial intelligence to personalize investment recommendations. Privé will continue to innovate in this area, bringing into account new ways to personalize portfolios and the wealth management experience as a whole.

Integration with other financial services

Many digital wealth management platforms are now integrating with other financial services, such as banking and tax preparation, to provide a more comprehensive financial management experience for users. Privé’s modular and cloud-based solutions allow for seamless integration with existing infrastructure, without needing to undergo a wholesale replacement of the system. This helps us to keep costs and downtime low for clients.

Increased focus on sustainability and impact investing

There has been a growing trend among digital wealth management platforms to offer investment options that prioritize environmental, social, and governance (ESG) criteria. For example, Bloomberg Intelligence predicts that ESG assets are set to balloon by $15 trillion to $50 trillion in 2025. In 2023, we predict that the focus will shift from Environmental issues to the Social and Governance aspects, which have previously been largely overlooked in comparison. Privé has already made great strides in including ESG interests into our portfolio creation process, such as in our FundsGuide and Privé FLEX solutions.

Continued growth of mobile

The use of mobile devices for managing investments and accessing financial information is expected to continue to grow. The rise of ‘super-apps’ also contributes to the need to develop more mobile wealth management offerings. A ‘super-app’, is an application in which one integrated platform is used to provide a full ecosystem of services shaped around a user’s lifestyle needs, including financial and banking services. Privé has been incorporating wealth management services into mobile applications since 2021, aiding financial institutions in their digital transformation journey.

In summary, the digital wealth management industry is evolving and adapting to new trends and technologies. As an industry leader, Privé Technologies is committed to staying at the forefront of these changes and providing our clients with the tools and resources they need to manage their wealth effectively in the digital age. We look forward to continuing to provide our modular solutions in the coming years.

Sales Contact

Rutul Gandhi

Chief Revenue Officer, APAC

DISCLAIMER: This press release is for information purposes only. Some of the statements in this press release may be forward-looking statements or statements of future expectations based on currently available information. Such statements are naturally subject to risks and uncertainties. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements. Privé does not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such statements. Therefore, in no case whatsoever will Privé and its affiliate companies be liable to anyone for any decision made or action taken in conjunction with the information and/or statements in this press release or for any related damages. Privé assumes no obligation to update any information contained herein.