Large banks and financial institutions are finding a new muse in 2021- the retail electronic wealth management sector. Some of the top Tier 1 financial institutions is now looking to stir the industry.
Goldman Sachs joins the race
Goldman Sachs is the latest financial institution to jump into the retail electronic wealth management segment, competing directly with the OTC Derivatives sector and non-banking wealth management firms. One of the largest Tier 1 forex interbank dealers in the world by market share, Goldman has started testing an in-house wealth management platform designed for retail customers.
Recently, a number of executives from another Wall Street heavyweight JP Morgan ended their institutional careers and raised $4 million to launch an electronic wealth management platform for retail consumers. Institutional software company SS&C EZE, which has long been a stalwart of the sector, launched a complete end-to-end solution designed for family offices, portfolio managers, and hedge funds.
Other companies interested in the sector
The largest retail financial services company in the UK, Hargreaves Lansdown is providing similar electronic wealth management services via its Vantage proprietary platform. The comprehensive solution lets clients manage all their investments- from CFD trades to ISAs via a white label partnership with the IG Group. The firm already has a huge client based in the UK, compared to some island-based forex firms offering more diversified portfolios to users.
Moving to wealth management platform development can be a natural path for many top forex firms. They have the industry insights and experience that could help them adapt to the new environment and respond quickly to the market’s demands. The most noteworthy segment in wealth management will be OTC derivatives.
The sector has been dominated by MAM accounts and Expert Advisors who have depended on introducing broker partnerships and social trading. The industry seems ready for a new push that could easily be supplied by top-tier forex firms.