Wealthtech Solutions Market size was valued at USD 5.5 Billion in 2023 and is poised to exceed USD 36 Billion by the end of 2036, registering over 17% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of wealthtech solutions is assessed at USD 6.4 Billion.
The increase in the adoption of automation solutions across industries is fueling the growth of the wealthtech solution market. By using wealthtech solutions, companies and banks can understand new-generation client demands, such as tech-enabled financial solutions, automatic rebalancing, and portfolio building. As per the statistics of US Census Bureau, working with cutting-edge technologies for automation might expose about 30% of all workers.
Moreover, wealthtech solutions help companies discover the demands of the next generation of customers, including those for tech-enabled financial solutions, automatic rebalancing, and portfolio development.
Growth Drivers
Challenges
Base Year |
2023 |
Forecast Year |
2024-2036 |
CAGR |
17% |
Base Year Market Size (2023) |
USD 5.5 Billion |
Forecast Year Market Size (2036) |
USD 36 Billion |
Regional Scope |
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Component (Solution, Services)
Solution segment is poised to capture over 54% wealthtech solutions market share by 2036. The segment growth can be attributed to companies changing how they manage their finances through WealthTech or wealth management technology. The digital financial ecosystem, which includes tools such as SaaS, big data, and AI, is now controlling the global flow of money.
The use of artificial intelligence is now being used by 32 % of financial service providers. By 2023, AI will create more than $450 billion of value in banking. The use of artificial intelligence for custom 52% er service has been planned by 50% of banks. Chatbots are viewed as a means of transforming the customer experience by 54% of financial services providers
These digital tools have become major factors in the growth of the wealthtech solutions market. Moreover, conventional wealthtech solutions interfaces are becoming simpler to use, thanks to the implementation of more dynamic UI and UX features, which are improving the end-user experience. The software solution vendors are dedicated to offering private banking departments, asset, and wealth managers cloud-based solutions to increase customer satisfaction, simplify and digitize the entire value chain, improve reporting, and restore margins. All of these factors are driving the growth of the segment in the market.
End-User (Banking, Wealth Management Firms, Investment Firms, Others)
Wealth management firms segment in the wealthtech solutions market is estimated to witness over 14% growth rate till 2036. These firms directly cater to the needs of high-net-worth individuals and institutional investors, who demand sophisticated digital wealth management tools and personalized services.
Weathtech solutions enable wealth management firms to streamline operations, deliver tailored investment strategies, and enhance client engagement, driving their adoption. Additionally, wealth management firms have greater flexibility and resources to invest in technology, making them well-positioned to capitalize on the growing demand for digital wealth management solutions globally.
Deployment Mode (Cloud, On-premises)
Cloud segment is poised to gain significant wealthtech solutions market growth, over the forecast period. Wealth management companies may grow their operations with ease thanks to cloud technology, which offers nearly infinite storage and computing power that can be modified based on demand. As observed, 55% of organization that prioritize cloud cost optimization.
Furthermore, wealth management companies can use cutting-edge technology like machine learning and artificial intelligence with cloud computing. These technologies greatly increase the operational efficiency of the firms by helping to improve client profile, streamline portfolio management, and automate procedures.
Our in-depth analysis of the market includes the following segments:
Components |
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Deployment Mode |
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Organization Size |
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End-User |
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North America market Statistics
North American region in wealthtech solutions market is poised to capture over 35% revenue share by 2036. The market growth in the region is also expected on account of digitalization in the financial sector, driven by changing consumer preferences and advancements in technology. The size of the North American digital banking sector reached USD 500 billion in 2019 and is anticipated to grow by more than 4% from 2020 to 2026.
Furthermore, in the United States, the market is booming forefront, as around USD 21 billion was spent on wealthtech services in 2020. Also, wealthtech funding totaled USD 14 billion in 2021, with 75% of Americans already using wealthtech services.
In asset management, wealth planning, or direct investing, the wealth technology market has expanded at a never-before-seen rate. One market niche stands out in the midst of that massive upsurge in innovation and adoption. At CG Wealth, generative AI is another area of great interest. Among the nearly endless potential uses
European Market Analysis
The European region will also encounter huge growth for the wealthtech solutions market during the forecast period owing to demand for digital financial services, driven by changing consumer preferences, technological advancements, and regulatory reforms, growing at a CAGR of around 14%. By 2025, its technology infrastructure is expected to provide coverage for 5G networks in 75 % of the population. Wealthtech solutions cater to this demand by offering digital platforms and tools for investment management, financial planning, and portfolio analysis, contributing to the growth of the market in the region.
The wealthtech solutions market in Germany is anticipated to garner significant market figure, owing to develop in the fintech sector, Digital assets with an AUM of USD 3,208.00 million in 2024 will be the most important market.
Over the previous five years, French FinTech has had tremendous growth. The CAGR of French FinTech investment climbed to 52.2% between 2018 and 2022. France is now firmly established as one of Europe's leading FinTech nations.
Author Credits: Abhishek Verma
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