While there are a number of growth markets in the digital age, few are expanding at the same rate as the wealth management sector.

According to the most recent data, this global market is set to grow from $1.70 billion at the end of last year to a staggering $3.20 billion by the end of 2022. This represents a Compound Annual Growth Rate (CAGR) of 13.4%, with the adoption of cutting-edge technology at the heart of this relentless expansion.

But what are the technologies that will be central to the wealth management sector as it continues to grow? Let’s take a look:

Introducing Artificial Intelligence (AI)

One of the key trends in this sector is the rise of AI, with a number of market leaders having already leveraged Robo-advisors and apps in order to enhance the typical investor experience.

As this technology becomes increasingly sophisticated, however, we’ll see the deployment of more complex algorithms relating to a wider range of investments. More specifically, advanced AI software will be capable of processing increasingly large swathes of information and insight, including unstructured data from sources such as social media.

This will help investors to access an increasingly diverse and accurate range of insights, which in turn inform their decisions and deliver more lucrative returns over time.

What About Blockchain? How will this Impact on the Wealth Management Sector

Of course, there is still some way to go before AI can replicate the emotional intelligence that is required when investing your hard-earned capital, and in the meantime, we can expect another technology to take center stage in the marketplace.

This is Blockchain, which remains one of the most disruptive and revolutionary innovations across the whole of the financial services industry. A distributed ledger technology that underpins the cryptocurrency market, it is already making waves in the investment sector and can also be applied successfully in Wealth Management.

This will deliver a number of tangible benefits, including the creation of real-time settlement models and the elimination of transaction costs. This represents a common theme for Blockchain, which negates the need for a middleman and central authority when completing investments and financial transactions.

This also taps into the transparent nature of Blockchain technology, which is capable of providing a full transaction history and the detailed financial history of every client portfolio.

This would have significant implications in terms of knowing your client (KNC) and risk Management, while it would also allow for increased efficiency and reliability during client interactions.

When combined with the potential impact of increasingly sophisticated AI software, it points to a bright future for investors and the wider wealth management industry as a whole.

The post How will Technology Change Wealth Management in the Future? appeared first on Wipsen.org.