Report:
The Forrester Wave™: Digital Wealth Management Platforms, Q1 2024
How does Forrester define the Digital Wealth Management Platforms market in 2024?
Digital wealth management platforms (DWMPs) help wealth management firms modernize the investor and financial advisor experience in an increasingly challenging economic environment. These platforms offer solutions to optimize client experience and increase financial advisor productivity across the entire investor lifecycle, enabling firms to acquire new customers, deliver better experiences, and lower costs. DWMPs include customizable workflows, data models, an ecosystem of fintech partners, and integration with core and CRM solutions to manage all aspects of the investor lifecycle, supporting regulatory compliance and enabling use cases such as prospect management, financial planning, onboarding, self-service, personalized recommendations, reporting, analytics, portfolio risk management, and advisor productivity.
Key Facts for The Forrester Wave™: Digital Wealth Management Platforms, Q1 2024 in 2024
- Publication Date: 06-Feb-2024
- Document ID: RES180427
- Summary: In our 26-criterion evaluation of digital wealth management platform (DWMP) providers, we identified the 12 most significant ones and researched, analyzed, and scored them. This report shows how each provider measures up and helps wealth management technology professionals select the right one for their needs.
- Authors: Vijay Raghavan, David Hoffman, Sara Sjoblom, Sohm Gough, Peter Harrison
How did the Digital Wealth Management Platforms market evolve in 2024?
- Digital wealth management platforms help firms acquire new customers, deliver better experiences, and lower costs
- DWMPs include customizable workflows, data models, fintech partner ecosystems, and integration with core and CRM solutions
- Platforms support regulatory compliance and enable use cases across the investor lifecycle
- 15 vendors evaluated across 26 criteria grouped into current offering, strategy, and market presence
- Evaluation includes Leaders, Strong Performers, Contenders, and Challengers
- Key trends include AI-powered advice, explainable AI, and innovative fintech solution integration
- Leading platforms offer modular architectures for easy integration of next-gen features
- Vision and continuous R&D investment in DWMPs are critical for attracting tomorrow's investors
- Evaluation materials cutoff date: October 12, 2023
What product features are required to be included in this year's evaluation?
- Category revenue greater than $15 million. The DWMPs in this evaluation have shown revenues greater than $15 million over the past four completed fiscal quarters.
- Robust capabilities across the front, middle, and back office. The DWMPs in this evaluation have end-to-end solutions or proven ability to integrate to provide an end-to-end wealth management solution.
- Live implementations at enterprise FIs. The vendor has live, active installations running the current version of the platform that support a range of investor segments.
- Forrester client mindshare. Forrester considered the level of client interest based on our various client interactions, including inquiries and advisories.
What are the common features of top products in the Digital Wealth Management Platforms space?
No common features specified.
Scope Exclusions
- Vendors with category revenue less than $15 million
- Vendors lacking end-to-end solutions or integration capabilities across front, middle, and back office
- Vendors without live implementations at enterprise financial institutions
- Vendors with insufficient Forrester client mindshare or interest
- Pure CRM solutions without wealth management platform capabilities
- Core banking systems without specific wealth management functionality
- Point solutions addressing only specific aspects of the wealth management lifecycle
Inclusion Criteria
Vendors must, among other requirements:
- Category revenue greater than $15 million over the past four completed fiscal quarters
- Robust capabilities across the front, middle, and back office with end-to-end solutions or proven ability to integrate
- Live implementations at enterprise financial institutions running the current version of the platform
- Forrester client mindshare based on client interest from inquiries and advisories
Offering Strengths — Relative Weighting
- Business capabilities — 15%
- Data and analytics — 5%
- Dynamic, automated, digitized onboarding — 5%
- Single view: customer, products, services — 5%
- Trust, estate, tax planning; scenario impact — 5%
- Retirement distribution and drawdown — 5%
- Integration capabilities with CRM, social media — 5%
- Headless platform — 5%
- Goal-based financial planning/monitoring — 5%
- Automated advice (robo-advice) — 5%
- Product configuration and catalog — 5%
- Channels and cross-channel capability — 5%
- Customer experience — 5%
- Customer portal and financial wellness — 5%
- APIs and API management — 5%
- Artificial intelligence — 5%
- ESG reporting and analytics — 5%
- Delivery models — 5%
Strategy Strength — Relative Weighting
- Vision — 25%
- Roadmap — 20%
- Innovation — 20%
- Partner ecosystem — 15%
- Adoption — 10%
- Community — 10%
FAQs
Q: What does this research cover?
A: This research evaluates 15 digital wealth management platform providers across 26 criteria, analyzing their current offerings, strategy, and market presence. It covers end-to-end solutions that optimize client experience and increase financial advisor productivity across the entire investor lifecycle, including capabilities for prospect management, financial planning, onboarding, self-service, personalized recommendations, reporting, analytics, portfolio risk management, and advisor productivity.
Q: Who should use this research?
A: Wealth management technology professionals should use this research to select the right digital wealth management platform for their needs. The evaluation helps decision-makers compare vendors based on specific criteria like AI-powered advice, partner ecosystems, data analytics, customer experience, innovation roadmaps, and geographic presence. Buyers can download the Excel-based vendor comparison tool to customize weightings and adapt rankings to their individual requirements.
Q: What are the mandatory features of vendors included in this market?
A: To be included in this evaluation, vendors must demonstrate: 1) Category revenue exceeding $15 million over the past four fiscal quarters, 2) Robust end-to-end capabilities across front, middle, and back office operations or proven integration ability to provide complete wealth management solutions, 3) Live, active implementations at enterprise financial institutions running the current platform version and supporting diverse investor segments, and 4) Significant Forrester client mindshare based on client interest demonstrated through inquiries and advisory interactions.
Q: What are some reasons for not being included in this report?
A:
- Insufficient revenue (below $15 million in category revenue over past four fiscal quarters)
- Lack of comprehensive capabilities across the wealth management lifecycle
- No live enterprise implementations or outdated platform versions in production
- Limited client interest or market presence as measured by Forrester client interactions
- Inability to support range of investor segments
- Lack of proven integration capabilities for end-to-end solutions
- Declined to participate in the evaluation process
- Only partial participation in the evaluation process
Q: What should buyers consider when evaluating products in this market?
A:
- Leverage data and analytics to enhance the investor and advisor experience with AI-powered advice that explains the basis for recommendations and uses explainable AI to confirm freedom from bias
- Offer broad access to innovative fintech solutions through partner ecosystems, particularly important for firms with modular architectures
- Communicate a compelling vision focused on technology as a differentiator with continuous R&D investment in capabilities like digital asset custody and AI-driven advice
- Evaluate the vendor's available resources to continually enhance capabilities and provide reliable delivery and ongoing support
- Consider geographic presence and local expertise requirements for sales and implementation
- Assess integration capabilities with existing core systems and CRM solutions
- Evaluate deployment model options (cloud-based, SaaS, on-premises) based on organizational needs
- Review the strength of the partner ecosystem for accessing third-party capabilities
- Consider the vendor's track record with similar-sized institutions and use cases
- Assess the comprehensiveness of regulatory compliance support
Q: How has the Digital Wealth Management Platforms market evolved in 2024?
A:
- Increasingly challenging economic environment and continued competition requiring tools for customer acquisition and experience improvement
- Modernization of investor and financial advisor experiences through digital platforms
- Focus on freeing up scarce technology resources for value-added activities
- Adoption of modular architectures for flexibility in integrating next-generation features
- Leveraging data and analytics with AI-powered advice and explainable AI
- Growing importance of ESG (environmental, social, and corporate governance) capabilities
- Expansion of innovative fintech solutions through partner ecosystems
- Emphasis on technology as a competitive differentiator with continuous R&D investment
- Integration of digital asset custody for blockchain
- Enhancement of personalized recommendations based on investor values and risk tolerance
Q: What differentiates Strength of Offering vs. Strength of Strategy?
A: Current Offering evaluates the strength of a vendor's existing product capabilities across business functionality, technology, and user experience, representing their vertical position on the Wave graphic. Strategy assesses the vendor's vision, roadmap, innovation approach, partner ecosystem, adoption success, and community engagement to determine their horizontal position, indicating how well-positioned they are for future market needs and growth.
Reference
- Forrester, The Forrester Wave™: Digital Wealth Management Platforms, Q1 2024, 06-Feb-2024, ID RES180427
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