The US, Canada, and Mexico are major economies in North America. The financial sector is continually adopting advanced technologies to provide financial services in cheaper and efficient ways. These advanced and creative technologies garnered attention during the global financial crisis of 2007–2008, when strict rules were imposed on conventional banks, and innovations in the IT industry increased the incentives for expanding nonbank and technology-based financial enterprises. For instance, a few technological revolutions in the finance sector comprise mobile payments, ATMs (automated teller machines), and trade finance using blockchain. The technological interruptions in wealth management services consist of Robo-advisors and automated financial advisors designed to compete with human advisors. Robo-advisors advise various investing techniques for goals, such as saving for significant expenses, retirement, and maintaining a stream of income to handle expenses effectively. Advantages of Robo-advisory management wealth services over traditional services, involving human advisory, are easy accessibility, affordability, and the ability to offer their clients the option to obtain financial advice and handle investments at any time, from any place, with the help of an Internet connection. Robo-advisory allows the wealth management players to provide their services at low fees, permitting them to expand into the target market. North America was the first region to introduce automated financial advisors (robo-advisory). Wealth management organizations and banks in the US have implemented Robo-advisory services to offer comprehensive, effective, and efficient services. Key reasons that led to the early acceptance of this technology across the region are increased cost and accessibility, supported by rising internet penetration and cheap financial aid fees. These factors lead to the growth of the wealth management platform market in North America.
With the new features and technologies, vendors can attract new customers and expand their footprints in emerging markets. This factor is likely to drive the North America wealth management platform market. The market is expected to grow at a good CAGR during the forecast period.
North America Wealth Management Platform Market Segmentation
The North America wealth management platform market is segmented on the basis of advisory model, business function, deployment type, end user, and country. The market, based on advisory model, is segmented into human advisory, robo-advisory, and hybrid. The human advisory segment held the largest market share in 2020. The North America wealth management platform market, by business function, is segmented into performance management, risk and compliance management, portfolio accounting and trading management, financial advice management, reporting, and others. The portfolio accounting and trading management segment held the largest market share in 2020. The market, by deployment type, is segmented into cloud and on-premises. The cloud-based segment held a larger market share in 2020. The North America wealth management platform market, by end user, is segmented into trading and exchange firms, banks, brokerage firms, investment management firms, and others. The investment management firms segment held the largest market share in 2020. Based on country, the North America wealth management platform market is segmented into the US, Canada, and Mexico. The US held the largest market share in 2020. Broadridge Financial Solutions, Inc.; Comarch SA; FIS Global; Fiserv, Inc.; InvestCloud; InvestEdge, Inc.; Profile Software S.A.; SEI Investments Developments, Inc.; SS&C Technologies, Inc.; and Temenos Headquarters SA are among the leading companies in the market.