Our estimates put the compound annual growth rate of Portfolio Management technology spending at 5% annually from 2012 – 2016 as mass affluent and lower end high net worth clients increase their demand for more sophisticated portfolios and services.  We expect:

• Cloud and hosted Portfolio Management solutions to become more accepted and popular among many firms, although large firms may be slower to adopt non-installed solutions.
• The importance of mobile and client portal functionality will increase due to client desire for portfolio transparency, and advisor demand for better client engagement tools.
• Integration of Portfolio Management functions will aid in building the holistic approach that wealth management clients desire.
• Spending on Portfolio Management in the Asia-Pacific region is expected to increase at an annual compound growth rate of 8%, from an estimated US$ 284 million in 2011 to US$ 420 million in 2016.

The Portfolio Management estimates are part of a new initiative: TechSpend. The new research provides Financial Service Institutions’ spending forecasts in all major IT areas. TechSpend will forecast global spending broken down by region (North America, Europe, APAC, Latin America and the Caribbean and Middle East and Africa) and source of spending (internal, hardware, software, professional services and IT outsourcing) while also offering insights into the underlying growth drivers.   Based on our expertise and bottom up approach to technology spend estimation, we identify and project the key drivers of units in operation and price for a technology. 

To learn more, CEB TowerGroup Wealth Management members can access the full Portfolio Management TechSpend.