Why Firms May Reverse Course on AI Plans in 2024: Forrester

Changing investor behavior will also influence the technology that firms deliver to clients in 2024, Raghavan added. The ongoing high-interest environment has consumers looking more at fixed income investments than they have in decades, yet most mobile investment apps can’t meet the demand. 

Only 25% of respondents to Forrester’s digital usability study were able to find bonds on a firm’s app, and most apps don’t offer a way to trade them. Fidelity Investments’ app provides the ability to buy a certificate of deposit, but that’s an exception, Raghavan said. 

“To me this seems like a real opportunity to add some bond-screening capabilities and really differentiate in the market,” he added. 

Raghavan also expects new types of technology to thrive in 2024 as advisors look to attract validators, a demographic that Forrester defines as younger (average of 43), employed and earning an average income of $106,000. At 42%, this group is now the largest segment in the United States.

These investors are more hands-on with their investments but still want to connect with financial advisors.

Advisors launching or moving a practice need more sophisticated and mobile-first technology to reach this demographic; plus, technology vendors taking full advantage of cloud-based services and products can help deliver this in a matter of weeks, instead of months, Raghavan said. 

This new model, which he calls “wealth management as a service,” will challenge some of the existing players in the tech landscape. 

(Credit: Daniel Chetroni/Adobe Stock)