What you need to know:
- AI and open integration aren’t new, but the wealth management industry has reached a point where it can reap the benefits.
- Personalized client engagement is one of the most mature AI use cases in wealth management. Meanwhile, AI-driven investment personalization and back-office automation are still in the early stages.
- GenAI applications are emerging in client service and marketing.
- APIs are the connective tissue enabling holistic wealth management.
The wealth management industry is evolving to offer more than just investment services. It increasingly covers a broad range of financial needs across an investor’s entire balance sheet.
This shift reflects investors’ desire for more personalized, holistic advice that spans their financial lives. And it presents growth opportunities for wealth managers, who, by meeting a client’s broader needs, can manage a larger share of clients’ spending, drive additional revenue, and reduce the cost of acquiring any one client.
The renewed viability of 2 technology trends — open integration (particularly via APIs) and AI — has enabled a step-change in wealth managers’ ability to bring this vision to life.
Open integration orchestrates the different software used in financial products and services, while AI personalizes how clients and advisors work together. Both capabilities help automate business processes across the wealth management value chain.
In this report, we use CB Insights datasets like business relationships, investments, software buyer interviews, and earnings transcripts to highlight where these capabilities are driving growth and efficiency across the steps of the wealth management value chain. We also break down the tech players that wealth managers could consider for partnership, joint venture, or acquisition.
