AI, M&A Top List of WealthTech Trends in ‘23 

Investments in wealthtech continued its expansion in 2023, with 300 transactions completed, according to wealthtech consulting firm F2 Strategy. In comparison, the company said that 181 deals were completed in 2018, 203 in 2019, and 205 in 2020. 

F2 Strategy conducts periodic surveys of 85 wealth and asset management CEOs, CTOs, and other C-suite executives or decision-makers who collectively manage over $61 trillion in assets. 

“In our ever-evolving industry, the dynamics of growth and change persist,” said Doug Fritz, co-founder and CEO of F2 Strategy. “While initial perceptions pegged 2023 as a potentially slow year, our findings suggest otherwise. Reflecting on the past, it appears that we are on the brink of accelerated growth in 2024.” 

M&A was not the only aspect of wealthtech to expand last year. 

More than half of wealth management firms also raised their technology operations personnel, indicating that more businesses are interested in boosting their technology output. Additionally, 77% of wealth management firms incorporated new technology into their tech stack. 

Most wealth management firms strongly considered artificial intelligence last year. According to F2, 51% of companies are actively working on AI initiatives, with a particular emphasis on predictive analytics, optical character recognition, workflow automation, natural language processes, and chatbots. 

In fact, 70% of the firms surveyed upgraded their data architecture and governance in 2023, a 20-percentage point improvement over 2022. 

“This is a good sign as data sets the stage for success in all other areas of technology implementation from AI to reporting to marketing automation,” wrote F2 Strategy. 

One area that most businesses will need to improve is education. According to the report, 62% of wealth management organizations gave themselves a 5 or lower on a scale of 1 to 10 for their knowledge of AI.