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7 minutes read

Wealth Management Technology Trends

By Robert Kazmi
By Robert Kazmi
7 minutes read

Recent wealth management technology trends have been a disruptive force in the entire wealth management industry. The financial services industry is no stranger to technological expansion and disruption, but many of the FinTech advancements that most commercial banks offer consumers have been slow to make it into the high net worth wealth management sphere. 

There are a number of reasons why the wealth management industry has lagged slightly behind the financial services industry as a whole, but likely the biggest reason is that the majority of high net worth individuals are older and used to doing business in a certain fashion. However, that is all changing, and a new era of tech-savvy, high net worth individuals and commercial investors are the driving force behind a changing wealth management landscape. 

Let’s explore some of the most important wealth management technology trends shaping the industry today. 

The Most Important Technology Trends in the Wealth Management Industry 

If wealth managers want to capitalize on new market opportunities, they need to be willing to embrace new technologies and trends in wealth management. There have been some key demographic shifts that have been driving industry innovation. For one, millennials are becoming the dominant generation in the industry, and two, women are more likely than ever to be making financial decisions for their families. 

New demographics prioritize investment and wealth in different ways from previous generations. Wealth managers need to stay on top of technology trends if they want to remain competitive in a shifting market. Here are the key trends in wealth management to watch:

  • Machine learning for debiasing 
  • Augmented reality and virtual reality 
  • Artificial Intelligence and predictive analytics
  • IoT
  • RegTech 

Machine Learning for Debiasing

All human beings, even the most experienced wealth managers, have cognitive biases that affect their decision-making. This fact is one of the main reasons why so many businesses in a myriad of industries are finding Machine Learning tools to be so effective. 

One of the latest trends in wealth management is using Machine Learning to identify cognitive biases and make suggestions for correcting them. Wealth management firms have seen their profits dip as more clients switch to passive index funds. Correcting for biases using Machine Learning is helping improve outcomes for clients.

The more data you give Machine Learning tools, the better the predictions they will be able to make. Wealth management firms who successfully use Machine Learning will be able to identify when emotion or intuition is driving a trade and make the logical adjustment as a result. Using Machine Learning tools creates more value for clients and increases profits for wealth managers.

Augmented Reality and Virtual Reality 

Augmented Reality (AR) and Virtual Reality (VR) are two of the most exciting and promising tech advancements on the horizon. While it may seem like there is no place for AR or VR in wealth management, that is simply not true. 

Augmented Reality and Virtual Reality tools are a great way for wealth managers to reach the younger clients who are starting to dominate the market. Not only do these exciting technologies help attract younger clients, but they also help educate them about the benefits of wealth management in a way that is more interactive and easier for them to understand. 

The more effectively a wealth management firm can communicate the value of their service to a younger audience who might not be aware of the services they provide, the more successful they will be in the long term. Wealth management firms need to find innovative ways to interact with and educate their prospective clients, and AR and VR are going to be exciting ways that forward-thinking firms can accomplish this. 

Retail banks are already utilizing new technologies to attract and retain clients, and as technology continues to disrupt the financial services industry, more retail banks are starting to offer services that closely resemble services traditionally offered by wealth managers. Now is the time for wealth managers to think about innovating. 

Artificial Intelligence and Predictive Analytics 

Meeting and exceeding the increasingly specific needs, expectations, and demands of customers is key to success in any industry, but wealth management firms need to pay close attention because many firms are putting Artificial Intelligence and predictive analytics to use to do just that. 

These intelligence tools can help wealth managers develop specific value propositions that are tailored to each one of their clients. Artificial Intelligence tools can use client data such as investment history, preferences, and lifetime values to make predictions about the way a client will behave in the future. 

AI is a valuable tool that wealth managers can apply to customer behavior and market behavior. These tools can be used to create custom strategies for clients that have a higher probability of being successful. Consumers today want products that are personalized and highly effective, especially when it comes to their money and investments. 

Internet of Things (IoT)

The Internet of Things (IoT) is being put to use in almost every facet of modern life, but wealth management firms have yet to truly take advantage of all the ways IoT could benefit their businesses. 

IoT devices give wealth managers access to data sources not traditionally used in the past, but capturing real-time spending and saving data does more than just help wealth managers offer more custom products. It also helps clients get insights into their lifestyle that they may not have consciously been aware of. 

IoT technology is mostly used for tangible tasks like tracking a client’s assets, but it can also be used to improve operational efficiency, customer experience, and create better product pricing. This is done through the use of sensors. Now you’re likely wondering how something as seemingly intangible as wealth management can really benefit from tangible data.

All of the intangibility of wealth management is rooted in real tangible things. Stock prices and futures can be affected by how much rain falls in a certain location or how many packages a company ships in a quarter. Wealth management firms need to start harnessing the power of IoT technology to provide better outcomes for clients. 

IoT technology is trending everywhere, but the wealth management industry has been slower than most to adopt it. Now is the time to start thinking about the future and provide your clients with more insightful product offerings. 


RegTech, or regulation technology, is a huge trend that professionals in wealth management need to take note of. Compliance issues, even if it is just ensuring that you are staying compliant, costs firms a lot of money every year. RegTech helps limit compliance issues and makes the entire compliance process more cost-effective and efficient

The financial services industry is no stranger to regulations. Help your staff handle everything compliance-related with RegTech. Regulations can change and do change frequently. It is important to have a strong compliance system in place so that your firm ensures it is always compliant. 

RegTech solutions can help save your wealth management firm money in terms of fines, work hours, and the costs of changing regulations. Get help with regulatory compliance, and look for a RegTech solution for your business. 

Final Thoughts 

The wealth management landscape is changing rapidly due to advancements in technology. Firms that fail to adapt will be left behind and abandoned by customers in favor of firms that offer more robust solutions. Additionally, traditional wealth management firms have to deal with competition from retail banks and FinTech startups. 

If you’re unsure of how to start implementing new technologies in your firm, speak with an app development partner. A partner can help guide you through the process of finding, choosing, and building technology solutions that fit your needs. When you’re trying to determine which wealth management technology trends are best for your business, lean on the technical expertise and industry experience of a partner.

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