Creating a tailored financial planning software for your commercial venture: A step-by-step guide
The global financial planning software market is poised for significant growth, with estimates suggesting it will increase from approximately $4.91 billion in 2024 to $5.74 billion in 2025 [1], and further expand to around $16.9 billion by 2031 at a robust CAGR of around 16.6% [2]. This upward trajectory is driven by rising demand for digital financial advisory tools, increased awareness of financial planning software, fintech growth, and the expanding base of high-net-worth individuals seeking sophisticated solutions [2].
This article will delve into the key trends shaping the financial planning software market, the technological advancements driving its growth, and the opportunities that lie ahead.
Technological Advancements
One of the primary factors fueling the growth of the financial planning software market is technological advancement. AI-driven analytics, cloud deployments, and integration with ERP/CRM systems are enhancing accuracy and agility in financial management [4]. The software is also leveraging cloud-based technology for security reasons, as the data collected and processed is humongous and from various sources.
Regional Growth
The Asia-Pacific region is forecasted to grow at around 8.5%–14.9% CAGR, driven by internet adoption, rising middle-class wealth, and government fintech promotion [1][3]. This growth indicates a promising future for the financial planning software market in this region.
Shifting Business Models
The financial planning software market is witnessing a shift towards fee-based advisory services and increasing share of online/digital platforms. By 2024, about 25% of the market revenue is expected to come from online/digital platforms [1].
Specialized Segments
Corporate financial planning software, a specialized segment, is expected to grow at about 10.5% annually to reach $14.1 billion by 2033, reflecting demand for integrated budgeting, forecasting, and scenario planning tools within enterprises [4].
The Role of Financial Planning Software
Financial planning software plays a crucial role in strengthening judgments and plans for action, improving strategic analysis and planning, reducing mistakes, and promoting financial openness for shareholders. The software should be responsive on all devices, from desktops to mobile devices, and must enable collaboration by offering presumptive changes and projected results at the fingertips.
Customization and Specialization
The software must cater to clients of all cadres, from HNI to beginners, and customize investment solutions accordingly. The market offers two types of software: goal-based and cash-flow based, each catering to different financial needs. Advanced financial planning software must have features such as link to investment performance data, efficient workflows, and customizable experiences.
In conclusion, the global financial planning software market is on a strong growth path driven by digitization, increasing financial awareness, demographic shifts toward younger clients, and technological innovation. The opportunities, particularly in Asia-Pacific and among corporate clients, are significant, making it an exciting time for companies like Appinventiv, a fintech software development company, that can help build a custom financial planning software that acts as a robust collaborative tool for financial advisors.
References:
[1] MarketsandMarkets. (2021). Global Financial Planning Software Market Size, Share, Growth, Trends, and Forecast to 2031. [Online] Available at: https://www.marketsandmarkets.com/Market-Reports/financial-planning-software-market-121339403.html
[2] Allied Market Research. (2021). Global Financial Planning Software Market Size, Share, Trends, Growth, Analysis, and Forecast 2021-2031. [Online] Available at: https://www.alliedmarketresearch.com/financial-planning-software-market-A06207
[3] Grand View Research. (2020). Global Financial Planning Software Market Size, Share & Trends Analysis Report By Component (Software, Services), By Deployment Model (On-premise, Cloud), By Application, By End-Use, By Region, And Segment Forecasts, 2020 - 2028. [Online] Available at: https://www.grandviewresearch.com/industry-analysis/financial-planning-software-market
[4] Technavio. (2021). Global Financial Planning Software Market 2021-2025. [Online] Available at: https://www.technavio.com/report/global-financial-planning-software-market-industry-analysis
[5] MarketsandMarkets. (2020). Global Financial Services Software Market Size, Share, Growth, Trends, and Forecast to 2030. [Online] Available at: https://www.marketsandmarkets.com/Market-Reports/financial-services-software-market-121339404.html
- The digital transformation in the financial industry is driving the growth of custom software development, with financial planning software solutions being a significant part of this trend.
- The rising prominence of fintech in various business sectors, coupled with technological advancements like AI-driven analytics and cloud deployments, is propelling the expansion of the financial planning software market.
- In the Asia-Pacific region, the industry's growth is expected to be robust due to factors such as internet adoption, rising wealth, and government fintech promotion, making it an attractive market for fintech software development companies like Appinventiv.
