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Transforming Wealth and Asset Management: How Disruptive Technologies are reshaping the Industry

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Quick Glance.

The asset and wealth management (AWM) industry is undergoing a profound transformation, driven by disruptive technologies that reshape traditional business models and redefine how firms engage with clients.

As firms grapple with staying competitive in an increasingly digital world, technologies like generative artificial intelligence (GenAI), distributed ledger technology (DLT), big data, and cloud computing are emerging as powerful tools. These innovations are not just enhancing operational capabilities but revolutionizing offerings, revenue models, and business frameworks within the AWM ecosystem. The impact is expansive, and as firms adapt, the opportunities for growth and innovation are vast.


A New Era for AWM: Beyond Operational Efficiency

AWM firms have relied on traditional systems to manage assets, process transactions, and serve clients for decades. These systems were designed to ensure operational efficiency and regulatory compliance. However, disruptive technologies have sparked a shift in how the industry approaches these challenges.

“Technologies like GenAI, DLT, and big data are not only improving back-office functions - they’re transforming the core of how asset managers engage with clients and create value,” says Clara Brown, an analyst at Global Wealth Insights.

These technologies are increasingly moving from supporting back-office operations to playing a critical role in front-end services and client interactions. The value these technologies provide extends far beyond just improving operational efficiencies.

For example, GenAI can potentially revolutionize how AWM firms interact with clients by providing hyper-personalized advice and insights. Through advanced data analysis and predictive modeling, AI can anticipate client needs, suggest optimal investment strategies, and even automate complex decision-making processes. By leveraging AI, firms can enhance customer experiences, drive engagement, and build stronger relationships.

Similarly, DLT, which underpins technologies like blockchain, offers significant promise for improving transparency and trust in financial transactions. By providing a decentralized and immutable ledger, DLT can reduce the risk of fraud, enhance compliance, and streamline reporting. As a result, AWM firms can foster greater trust with clients, partners, and regulators.

Revenue Growth Through Technological Innovation

The most exciting aspect of this digital evolution is its potential to unlock new revenue streams. As disruptive technologies continue to evolve, they are helping AWM firms reduce costs and improve efficiencies, drive product and service innovation, open new markets, and enable entirely new business models.

According to a report by Deloitte, “Digital transformation is no longer a nice-to-have; it’s a strategic imperative for AWM firms looking to stay competitive.” The revenue potential is vast, spanning from product innovation to offering tech-as-a-service to other ecosystem players. For example, technology platforms for portfolio management, risk analytics, and data distribution are quickly becoming essential tools for firms looking to stay ahead of the curve.

The application of AI and cloud computing has enabled large enterprises to scale quickly, innovate more rapidly, and ultimately drive higher revenue streams. It’s no longer just about offering traditional wealth management services; it’s about creating a dynamic, technology-driven experience that meets the evolving needs of the modern investor.

This shift is especially evident in the growing popularity of tech-as-a-service models. AWM firms are increasingly offering their technology platforms to other players in the financial ecosystem, creating new revenue channels. These platforms provide access to advanced tools for portfolio management, risk assessment, and data analytics, allowing other firms to leverage the innovations driving growth at the forefront of AWM.

New Markets and Business Models: The Rise of Digital Wealth Management

The rise of digital wealth management platforms is one of the most visible trends in the industry today. These platforms, often powered by AI, blockchain, and cloud technology, are democratizing access to wealth management services, allowing retail investors to engage with their portfolios in ways that were once the exclusive domain of institutional clients.

“Digital wealth management platforms are transforming the client experience by offering easy access to a broad range of investment products and services,” says Jessica Lee, an analyst at WealthTech Research. “These platforms make it possible for investors to customize their portfolios, manage risk, and track performance from the convenience of their mobile devices.”

The impact of these platforms is far-reaching. They are expanding the market for wealth management services by appealing to younger, tech-savvy investors who expect seamless, on-demand services. Additionally, these platforms are helping AWM firms reach clients in previously underserved markets, such as emerging economies and younger demographics.

One key trend in the rise of digital wealth management is the increasing use of robo-advisors. These AI-powered platforms use sophisticated algorithms to create personalized investment strategies based on individual goals, risk tolerance, and preferences. By automating the investment process, robo-advisors can reduce costs and make wealth management more accessible to a wider audience.

Risk and Data Analytics: A New Frontier

As the AWM industry embraces digital transformation, risk management is one area where technology has an especially significant impact. Traditional risk management models often rely on static data and historical trends, making them ill-equipped to handle the complexities of today’s dynamic financial markets.

By leveraging big data, AI, and cloud computing, AWM firms can gain real-time insights into market trends, client behavior, and potential risks. Advanced analytics platforms can process vast amounts of data from various sources, including social media, economic reports, and transaction data, to provide actionable insights and identify potential risks before they become major issues.

This shift toward data-driven risk management allows firms to respond more quickly to market fluctuations and enhance their ability to predict and mitigate risks. It also enables them to offer more tailored advice to clients, helping them make better investment decisions and confidently navigate market volatility.

AI-powered risk analytics platforms are game-changers in how asset managers approach risk. By using real-time data and predictive models, firms can anticipate market movements and adjust strategies in real-time, creating a more dynamic approach to risk management.

Conclusion: Embracing the Future of Wealth Management

The wealth and asset management industry is at a crossroads. Disruptive technologies like GenAI, DLT, big data, and cloud computing are reshaping the industry’s landscape, opening up new avenues for growth, innovation, and client engagement. As these technologies move beyond back-office functions to become core business strategy drivers, firms must embrace digital transformation to stay competitive.

As analysts predict, the future of AWM is not just about improving efficiency - it’s about revolutionizing offerings, creating new revenue models, and adapting to the evolving needs of clients. The possibilities for innovation are endless, from digital wealth management platforms to advanced risk analytics. The rewards for firms that can leverage these technologies effectively are substantial - new revenue streams, improved client relationships, and a competitive edge in an increasingly crowded market.

Coforge has recognized the transformative potential of these technologies, and these disruptive technologies have been a key driver of revenue growth, with its clients seeing improvements in both operational efficiency and market reach. The ability to provide innovative products and services powered by technologies like AI and blockchain has allowed them to differentiate themselves and attract new clients.

Coforge has recognized the transformative potential of these technologies, and these disruptive technologies have been a key driver of revenue growth, with its clients seeing improvements in both operational efficiency and market reach. The ability to provide innovative products and services powered by technologies like AI and blockchain has allowed them to differentiate themselves and attract new clients.

Need help? Speak to our Asset and Wealth Management experts to learn more about how disruptive technologies are reshaping this industry.

Garry Harrison
Garry Harrison

Garry Harrison is an experienced leader in the Financial Services and Technology sector, and is now the Senior Vice President of Coforge heading the UK&I geography for BFS. He is an experienced financial technology executive and entrepreneur, having held senior leadership positions in the world’s leading financial technology firms and having scaled and exited two industry-leading global financial services and technology firms. Garry divested one of the World’s most successful and largest Financial Crime business, NetReveal, into the Private Equity company Symphonyai, and following this scaled (and exited) a Blockchain start-up business specialising digital identity and tokenisation which services many leading brands around the globe.

Garry also provides advisory services into fintechs on funding and scaling through The FinTech and Payments Advisory (TFPA), and is an advisory board member of Napier AI, a rapidly growing Financial Crime technology business. Prior to this, Garry Managing Director at BAE, and held significant leadership roles at DXC Technology, IBM, Wipro, and KPMG. Outside of work, Garry competes in triathlons and supports the charity OneMoreChild through Cycling the World.

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