The New Frontier in Wealth Tech

By Sasank Chary and Andy Greos

For the past several years, the wealth management industry has been experiencing a significant transformation, as advice is moving away from traditional investment-centric approaches towards more comprehensive, planning-led value propositions. This change has been driven by well-documented factors, including the Baby Boomer retirement wave, the impending generational wealth transfer, and the proliferation of low-cost investment options. Our team has invested in wealth management firms in the past—working with companies like United Capital, Beacon Pointe Advisors, and Osaic—and has witnessed this evolution firsthand.

Despite the industry's clear trajectory, progress has been slower than expected, largely due to outdated technology and inefficient workflows. However, we are now entering a golden age of wealth tech—one that will fully support the vision of delivering truly holistic financial advice. Technology is enabling a new blend of personalized advice and digital experiences, delivered efficiently and at scale. Far from diminishing the role of advisors, these innovations are enhancing their ability to provide comprehensive, tailored advice in ways that were previously unattainable.

The Dual Opportunity: Personalization and Broader Service

Modern technology solutions built on new architectures are redefining traditional data and engagement workflows, presenting an exciting opportunity: the ability to offer both deeply personalized experiences and services across a wider range of wealth levels.

Personalization at Scale

According to the 2023 Orion Wealth Survey, 49% of advisors see improved personalization as the primary driver of growth. New technologies are resetting the standard for wealth management experiences, offering unprecedented levels of personalization and insights. AI-driven tools enable advisors to create custom reports, generate personalized insights, and tailor their services to individual client needs - all at scale.

Serving the Broader Wealth Spectrum

Simultaneously, advisors can leverage new tools to efficiently offer their services across the wealth spectrum. For example, while planning has historically been limited to the HNW and UHNW, firms have recognized the opportunity to extend planning services, where today only 36% of Americans have a written financial plan (Schwab Modern Wealth Survey 2024).

Emerging Themes in Wealth Tech: Achieving the Goal of Holistic Planning

Wealth tech companies supporting these end-state goals are well positioned to enable this new age of advice. Three themes we believe are seeing particular tailwinds:

1. Data Access and Integration

A fundamental challenge in providing comprehensive, personalized financial advice is simply obtaining a holistic view of a client's financial assets. Open banking providers have made large inroads in allowing users to share their financial information across financial institutions, but this reveals only a fraction of the picture. For example, there is increasing need for data integration and middleware solutions that help ensure advisors have a complete view of a client’s relationship even across multiple product groups within the same institution. Moreover, companies leveraging cutting-edge data ingestion technology to capture information from various sources, including unstructured data, can be significant enablers. Ultimately, solutions that can provide advisors with a full 360-degree visibility can directly empower more personalized and effective advice, while enhancing customer experience and the ability to grow share of wallet and cross-sell additional services.

2. Financial Planning 

While firms recognize the opportunity to offer comprehensive planning services across their client base, this presents its own challenges. Legacy planning tools require manual data input and trial-and-error processes, making them inflexible and time-consuming for advisors to deliver truly customized plans at scale. In contrast, modern solutions are reshaping the landscape by providing more intuitive, efficient platforms. For example, AI can be used to automate goal-based recommendations that adjust dynamically, and real-time capabilities allow for tax planning and projections to be shared live with clients. These innovations enable advisors to scale their planning efforts more efficiently, delivering high-value, personalized advice without the operational burden of traditional systems.

3. Value-Added Services: The Case of Estate Planning

The trend towards holistic wealth management has expanded to encompass all aspects of a client’s financial life, including estate planning. Traditionally a service reserved for the wealthiest clients, automation is making estate planning more accessible to a broader range of clients. New platforms provide user-friendly, digital solutions that streamline the estate planning process, including easier plan visualization and automated document creation. These solutions can be particularly valuable in engaging with the next generation, fostering deeper relationships to ensure client retention. By offering value-added services like estate planning, advisors can solidify their role as comprehensive, trusted partners in their clients' financial lives.

The Future of Wealth Tech

The wealth management industry stands at a pivotal juncture. The convergence of advanced technology, changing client expectations, and the push for more comprehensive financial services is driving a significant upgrade cycle in wealth tech.

For wealth tech companies, the opportunity is clear: develop solutions that enable personalization at scale, facilitate services across the wealth spectrum, and empower advisors to deliver truly holistic financial guidance. Those who can successfully address these needs will not only capture a growing market but also play a crucial role in shaping the future of wealth management.