Celent foresees 2024 as a pivotal year of innovation for the wealth management industry. Organizations will strive to embrace emerging technologies that will ultimately transform their tech stacks, all while cautiously spending on IT investments in light of a volatile macro environment.

The new wealth management paradigm is underpinned by tectonic shifts, the:

•Revolution of AI

•New wealth management client base

•Disintermediation of distribution models and subsequent democratization of wealth management

•Strategic use of technology to alter operating models

The wealth management ecosystem has changed: wealth managers are no longer tied to a single platform from a single provider within a single industry. Partnerships between incumbents and fintechs are fueled by the unbundling of the tech stack – the open data ecosystem, supported by cloud-enabled states, API-first strategies, and data-led products and services are broadening the reach of wealth management services to a larger swath of clients.

Celent expects to see firms cautiously increase their investment in technology, converge across business lines, and seek to deliver the ultimate client experience.