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Key to unlocking the $10 trillion UHWI market in the US is advice and fintech, according to a study

According to a new study published today, the key to unlocking $10 trillion in US avers capital is a combination of innovative new fintech solutions and traditional face-to-face advice.

While many wealth management firms use proprietary or third-party technology solutions to differentiate themselves in the acquisition of investors and advisors, the true market opportunity for financial technology firms is held by 2,000 wealth management firms with roughly $10 trillion in assets under management.

Broker/dealers, registered investment advisors, and bank/trust firms are the most likely to license market-leading vendors, according to Cerulli, because they want to differentiate themselves from advisors and investors by controlling the client experience and building what they believe is a best-in-breed tech stack.


Three-quarters of these financial services firms say their tech philosophy is to license market-leading vendors and maximize tool integration, according to the study.

"There is a meaningful segment of firms that is seeking to leverage top external vendors while also optimizing integration," says Bing Waldert, managing director, Cerulli's US Research. "For many of these firms, their value proposition revolves around optimizing the advisor experience, in part through technology."

"Market-leading tools in categories such as performance reporting or financial planning should help the advisor create a better service experience for his or her clients," he continues. According to the research, the top three applications licensed from external vendors by wealth managers are portfolio accounting (75 percent), financial planning (58 percent), and tax optimization (56 percent).


The complexity of more affluent clients necessitates more specialized solutions for wealth managers working in the high-net-worth (HNW) and ultra-high-net-worth (UHNW) segments. This is particularly true in areas like performance reporting and financial planning.

Private investments, which are not valued on a daily basis and are often not held at mainstream custodians, will require performance reporting systems to support them. Similarly, a company may provide a standard service, such as a homegrown goal and financial planning system, but also provide connectivity to third-party solutions for more complex clients.



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