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A16422 | Pages: 295 | Charts: 62 | Tables: 172 |
The global financial planning software market was valued at $3.7 billion in 2021, and is projected to reach $16.9 billion by 2031, growing at a CAGR of 16.6% from 2022 to 2031.
Financial planning software is a tool designed to integrate the financial data of a user and segregate this information to deliver a desired analytical output for improved financial planning. This software tool utilizes variety of financial data as input and can be implemented for various tasks such as financial transactions, bank records management, investment tracking, budget management, portfolio management, and others.
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Rise in need to track & manage income of consumers and surge in mobile application across the globe are the major factors that drive the financial planning software market growth. In addition, increase in focus of organizations on digitalizing their financial services and upsurge in internet users across the globe fuel the growth of the market. However, security and compliance issues in financial planning software and availability of open source finance software hamper the growth of the market. Furthermore, increased adoption of finance software among developing economies and increasing number of high net worth individual is expected to provide lucrative financial planning software market opportunity.
The report focuses on growth prospects, restraints, and trends of the financial planning software market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the financial planning software market outlook.
The financial planning software market is segmented on the basis of component, deployment mode, application, end user, and region. By component, it is segmented into solution and service. By deployment mode, it is bifurcated into on-premises and cloud. By application, it is segregated into financial advice and management, portfolio, accounting and trading management, wealth management, personal banking, and others. By end user, the market is divided into large enterprises, small and medium-sized enterprises (SMEs), and individuals. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
[COMPONENTGRAPH]
By on component, the solution segment attained the highest revenue in the financial planning software industry. This is attributed to the fact that financial planning solutions help assess investment suitability, illustrating potential loss and alignment of investment solutions with a client’s risk profile and financial objectives. It demonstrates how a chosen investment portfolio meets the client’s objectives, replaying the risk profile, downside risk, and sequence of returns risk.
[REGIONGRAPH]
By region, North America attained the highest share in 2021. This is attributed to factors such as increased internet dependence, increased usage of mobile apps, increased acceptance of personal finance software, and the availability of open-source solutions are driving the growth of the financial planning software industry in this region.
The report analyzes, the profiles of key players operating in the financial planning software market such as Advicent Solutions, eMoney Advisor, LLC, Moneytree Software, MoneyGuide, Inc., Miles Software, Orion Advisor Technology, Personal Capital Corporation, Quicken Inc., RightCapital Inc., and SAP. These players have adopted various strategies to increase their market penetration and strengthen their position in the financial planning software market.
In COVID-19 pandemic, businesses were coping with operational challenges. To cope with this situation, many banks & financial institutions are providing their customers with new digital tools & techniques, among which financial planning software has witnessed significant growth. In addition, rise in online and mobile banking in this pandemic among end-users provides growth potential for the financial planning software market. Furthermore, many banks and FinTech industries have introduced various attractive banking strategies to support the SMEs and consumers to adopt financial planning software, thereby creating numerous opportunities for the market growth.
Factors such as huge customized & personalized products & services, help in eliminating financial stress & creating financial plans, and massive incorporation of digitalized offerings are contributing toward the market growth. With combining investment and financial counseling, financial planning software providers help in forming strategies as per the personal requirements of an individual and offers a completely personalized service from the expert and ensures quality services. Moreover, financial planning services for retired consumers has increased tremendously, as individual holding huge pensions that can help pay for bills & day-to-day needs, and further plan for retirement portfolio. These major benefits provided by financial planning software is boosting the market growth.
Financial advisors are increasingly investing in new technologies such as robo-advisor, artificial intelligence (AI), robotic process automation, and digital identification (ID) technologies for improving customer experience, FinTech (Financial technology) have largely disrupted the financial planning industry. In addition, FinTech includes a wide range of new technologies used to improve and automate delivery of financial planning services. Moreover, robo-advisor technology is increasingly used among high net worth individual as it involves automated & algorithm-based systems to provide customized portfolio management advices to customers. Growth in FinTech enhances efficiency and transparency in financial advisor software, which, as a result is significantly fueling the market growth in the region.
Recently, there has been a huge spike in the number of HNWIs worldwide and thus, the need for financial planning for them has increased considerably. A majority of the HNWIs are retired and have a huge amount of money, and thus, require financial planning to invest the funds in order to get good returns on investment as well as to plan their retirement. Therefore, the need for financial management software will help the HNWIs to carefully invest their money and provide expertise as per the market conditions. Thus, the growing number of high net worth individuals globally will provide major financial planning software market opportunity in the upcoming years.
Key Market Segments
Key Market Players