Envestnet Projects Major Trends for Financial Advisors' Growth in 2024

As the financial industry looks ahead to 2024, Envestnet Inc., a prominent provider of integrated finance and technology solutions, uncovers key drivers for growth in the wealth management sector. Emerging from a comprehensive study, which included market analysis, outside research, and proprietary surveys, the company identifies pivotal trends that will influence financial advice in the coming years.

Emphasis on Integrated Technology

Envestnet's report reveals a heightened interest among financial advisors for platforms that offer end-to-end technology solutions. Beyond just the convenience of singular logins, deep system connectivity is becoming crucial. Enhancements in areas such as client engagement and custody processes are deemed essential for improving the advisor experience and maximizing technological investments.

Transitioning Toward Holistic Advisory Services

Financial advice is rapidly evolving beyond mere investment strategies. Advisors now seek to add significant value through expanded services, including tax advice, estate planning, and life insurance. Envestnet | MoneyGuide aims to address this need by offering innovative tools that help advisors provide comprehensive financial planning that aligns with their clients' goals.

The Rise of Retirement Planning Opportunities

The retirement sphere presents a prime growth avenue for advisors. As employees and employers alike demand more integrated financial wellness tools within benefit packages, advisors are finding new ways to engage with assets through workplace retirement plans. This trend is expected to become an even more prominent route for asset acquisition.

Data and AI in Personalizing Client Services

Demands for personalized client services continue to climb, with data aggregation and AI-driven insights offering a solution. While a majority of advisors acknowledge the potential benefits of these technologies, implementation remains limited. Envestnet's Insights Engine stands as an example of AI facilitating tailored client experiences and more efficient practices.

Managed Accounts Gaining Preference

Managed account assets are experiencing robust growth across various channels, with a shift from commission-based to fee-based accounts. Envestnet anticipates Unified Managed Accounts (UMAs) to remain a fast-growing segment, providing clients with a holistic view and custom investment solutions.

Envestnet emphasizes the integral role of technology and service personalization in the ever-evolving landscape of financial advisory services, urging advisors to stay informed and adaptable.

Advisors, Technology, Advice