The Forrester Wave™: Digital Wealth Management Platforms, Q1 2024

Digital Wealth Management Platforms Vendor Product Comparisons 2024

Key features and pros and cons of top Digital Wealth Management Platforms products:

Temenos - Leaders

Pros:

End-to-end digital wealth management capabilities with deep knowledge of customer needs in multiple markets
Excels in almost every area of product functionality with strong execution roadmap
Invests significant portion of revenue in critical areas such as AI/ML, ESG, and advanced analytics
Unique approach to codesigning solutions with customers and partners through Temenos IMPACT program
Global presence with local customer success teams and expertise
Robust client onboarding with extensive product recommendations and explanations
Extensive modeling and analytical capabilities including future cash flows, geographic/currency risks, and goal planning
Strong partner ecosystem where community can cocreate solutions

Cons:

Best suited for financial institutions with global presence looking for end-to-end solutions
Requires active involvement in developer ecosystem

Backbase - Strong Performers

Pros:

Expanding wealth management capabilities through Nucoro acquisition
Strong innovation pipeline and roadmap with AI-enabled ESG scoring and LLM-powered chatbots
Focus on customer experience and financial wellness with unified engagement platform
Excels with dynamic onboarding capabilities and API management
Partnership with Microsoft in Azure Marketplace for fintech solutions
Expanded footprint into US market with established North American operations

Cons:

AI and ESG reporting and analytics not as evolved as other vendors
Dependence on core systems to create full end-to-end experience
Strength historically more in banking; wealth capabilities added through acquisition
Some out-of-the-box capabilities needed to deliver on time

Comarch - Strong Performers

Pros:

Creates singular customer-centric experience for advisors and end customers
Strong user interface easy for both advisors and customers to use
Advisors can generate AI-based videos with customized messages and investment ideas
Flexible during implementation with good communication
Derives 78% of wealth management revenue from EMEA and 22% from APAC

Cons:

Lacks ability to customize analytical views at customer level
Data analytics capabilities provided by third parties and lack necessary depth
Does not currently offer wealth management solutions to North America despite presence there
Relies heavily on third-party connectors

InvestCloud - Strong Performers

Pros:

Cloud-based, modular products functioning as building blocks
Strong impact planning analysis and scenario manager capabilities
Advisors have control over impact analysis including retirement age, insurance coverage, cash flow control, tax strategies
Can create complex scenarios by customizing asset liquidation order, proposed trades, redemptions
Strong digital front end with easy third-party integrations
Increasingly global presence with local expertise in North America, EMEA, and APAC
Handled recent leadership changes proactively

Cons:

Lacks support for robo-advisory
Limited to cloud-based deployments only
Not suitable for RIAs looking for on-premises solution
Reference customers questioned how long-term strategy and vision may change going forward

Objectway - Strong Performers

Pros:

Cloud-based platform supporting many ways customers interact with advisors
Embeds AI capabilities like automated recommendations and next best action with explainable AI
Strong front-end experience including investor/advisor portal and cross-channel capabilities
Unified perspectives of customer's assets under management and total wealth
Offers real-time collaboration including secure chat, screen sharing, and remote video
Strong partner during implementation and knowledgeable about system integration
Strong partner ecosystem leveraging firms like Unblu and Wealthbrain

Cons:

Lacks intuitive product configuration
Trust, estate, and tax planning and scenario impact are weaknesses
Product configuration and CRM integration not as intuitive as others

Prometeia - Strong Performers

Pros:

40-plus-year history with rapid growth in European market
Innovations in custom product onboarding, ESG data and analytics, and multijurisdictional deployment
Invests locally, partnering with technology vendors and localizing software to each geography
Strong execution roadmap grounded in client experiences with three distinct roadmaps: financial advisory, SaaS multitenant, and AI
Wide range of end-to-end business capabilities and automation of common tasks
Uses gamification, intuitive reporting, and intuitive UI for advisors
Rigorous project management during delivery
Toolbox that customizes solution for financial institutions

Cons:

Partner ecosystem not as robust as others and concentrated in EMEA region
Limited presence outside Europe

TCS - Strong Performers

Pros:

Comprehensive architecture that can support TCS's three lines of business
Deep expertise in large, complex implementations
In-depth data analysis on account performance for both client and advisor
Advisors can generate account reports on the fly
Derives 55% of revenue from Americas and 45% from EMEA and APAC
Customer support resources with sector and geographic expertise at local level

Cons:

Product roadmap shows high-level initiatives but lacks differentiating or innovative initiatives
Key tools like multiportfolio comparison analytics and tax efficiency rules on roadmap but not yet available
Customer onboarding and AML/KYC capabilities not as evolved as other vendors
RIAs must depend fully on third-party connectors for client acquisition and servicing tools
Strategy for wealth management continues to evolve
Reference customers did not respond to Forrester's outreach

Avaloq - Contenders

Pros:

Dynamic, goals-based wealth management module that automatically adapts to client's wealth and life situations
Platform can function as core banking system used in conjunction with other vendors
Strong partner ecosystem
Collaboration with BlackRock (Aladdin Wealth) to enhance technology solutions
Almost 90% of revenue from Europe with developing APAC presence

Cons:

Product configuration screens have overly complex UI compared to others
Changing approach with BlackRock partnership - buyers should monitor updated offering
Declined to participate in full Forrester Wave evaluation process

Broadridge - Contenders

Pros:

Strong partner ecosystem enabling integration across wealth management ecosystem
Can automate platform scalability to handle increased load and demand
Continuous feedback loop with platform users to improve product strategy
Cloud-native, end-to-end wealth management solution
Many in-house infrastructure and back-office capabilities
Shines in back-office space with breadth in case management, retirement services, bookkeeping, custodial services, tax processing
Generates 80% of wealth management revenue from North America

Cons:

Vision, innovation, and roadmap below par relative to others evaluated
Relies more on third-party connectors for client-facing channel features
CRM connector with Salesforce partnership feels disjointed from rest of platform
Product configuration feature feels clunky, outdated, and not user friendly
Platform and systems are product of series of acquisitions
Drive for innovation does not happen internally

CREALOGIX - Contenders

Pros:

Supports open digital ecosystem integrating marketplace of third-party apps
Serves as front-end orchestration layer connecting to firm's core systems
Cross-channel capabilities with focus on consistent experience
Seamless experience across desktop, tablet, and mobile devices
Support for real-time collaboration in multiple channels
More than 300 partners and external consultants

Cons:

Relies on third-party capabilities rather than proprietary development
Trust and tax planning capabilities are area of weakness
Most implementations in Europe, Middle East, and APAC
Vencora acquisition may change area of focus and strategy
Declined to participate in full Forrester Wave evaluation process

EdgeVerve - Contenders

Pros:

Modular with functional architecture covering front-office and back-office operations
API marketplace with various connectors from startups to established offerings
Product subsidiary of Infosys with established core banking suite
Leverages knowledge of banking clients to expand with wealth management suite

Cons:

Derives most wealth management revenue from APAC and EMEA
Lacks North American presence
Go-to-market and sales strategies focus on APAC and EMEA regions
Declined to participate in full Forrester Wave evaluation process

FNZ - Contenders

Pros:

Low-cost, rapidly deployable option for integrations and automation
Significant presence in EMEA with robust ESG and sustainability data aggregation
Low-code/no-code app development and workflow automation
Third-party app marketplace
Recent YieldX acquisition to enable fixed-income securities scanning
Integrates with systems in use as API-connected extension

Cons:

As standalone solution, falls short in goal-based financial monitoring and planning
Lacks single view of customer and financial wellness as standalone
Primarily generates wealth management revenue from EMEA and APAC
Works better as orchestration layer than singular solution
Declined to participate in full Forrester Wave evaluation process

Envestnet - Challengers

Pros:

Unifies wealth technology, financial planning, portfolio management, and client portal
Operational services including analytics, unified account management, and back-office processing
Streamlined user interface covering front-office activities
Goal-based financial planning and portfolio management capabilities
Back-office capabilities like trade reconciliation, data audits, compliance reporting, daily account aggregation
Partnership with FNZ to expand international presence

Cons:

Most revenue comes from North America
Focus on RIA market limits scope to geographic region
Lacks presence outside of North America
Declined to participate in full Forrester Wave evaluation process

FIS - Challengers

Pros:

Cloud-native platform with 360-degree household customer views and client portal
Business management tools like referral management and portfolio monitoring
Trust account capabilities, actionable dashboards, proposal generation
Data integration with FIS's banking platform
Third-party connectors via FIS Code Connect marketplace

Cons:

Marketplace lacks breadth in wealth management and retirement compared to others
Lacks wealth-management-specific API connectors
Primarily generates revenue from North America
Presales and sales strategy align with core banking strategy rather than wealth-specific
Declined to participate in full Forrester Wave evaluation process

SS&C Technologies - Challengers

Pros:

End-to-end platform with holistic, single view of customer
Customizable client web and mobile portal
Ability to create firm-branded space for financial advisors
Available via on-premises or SaaS deployment
Partner ecosystem for technology stack configuration
Outsourcing data solutions including automated aggregation, reconciliation, accounting
Consultative approach with advisor community

Cons:

Best for customization but lacks robust CRM capabilities
New CRM lacks key features of more mature CRM systems
Derives most revenue from North America with some business in EMEA and APAC
Not suitable for firms looking for all-in-one solution
Declined to participate in full Forrester Wave evaluation process

FAQs

Q: Which vendors are Leaders in 2024?

A: Temenos

Q: What does "Leader" mean in Forrester Wave terms?

A: Leaders are vendors that demonstrate the strongest current offering and strategy in the digital wealth management platforms market. They excel in product functionality across multiple areas, have a compelling vision for the future, maintain significant market presence, and show strong innovation and execution capabilities.

Q: How do I interpret a Forrester Wave?

A: https://www.forrester.com/policies/forrester-wave-methodology/

Report:

Top Vendor Products for Digital Wealth Management Platforms in 2024

Digital Wealth Management Platforms Vendor Product Comparisons 2024

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FAQs

Q: Which vendors are Leaders in 2024?

Q: What does "Leader" mean in Forrester Wave terms?

Q: How do I interpret a Forrester Wave?

Reference