2024 Trends & Predictions: Digital Wealth — Investor

Artificial intelligence is moving through the investor ecosystem at lightning speed. Self-directed trading platforms are extending their reach through strategy automation, access to new data sets, and the deployment of AI-based conversational interfaces. Emerging mass affluent investors are leveraging generative AI to realize preferences for hyper-personalized portfolios and integrated banking, cash management, and investments services. 

Artificial intelligence now provides individuals with risk management and other capabilities once reserved for institutions. AI-powered platforms are using advanced analytics, social media sentiment analysis, and automated mirror trading to help self-directed investors develop strategies across stocks, bonds, options, and digital assets. With generative AI interfaces, these traders can now develop, test, and deploy their personal investment theses in minutes. 

On the demand side, emerging mass affluent investors ($100,000 to $250,000 in investible assets) are embracing banking and investment tools with an ardor that demands the attention of wealth managers. Millennials, in particular, require a new generation of integrated digital services. Rising credit needs should be supported by liquidity tracking and spending optimization tools, for example. AI-powered analytics and data connectivity allow financial institutions to deliver consolidated access to brokerage and banking accounts in the service of a hyper-customized financial experience.

Lastly, interest remains strong among values-driven investors, especially the youngest. New, streamlined platforms are using intuitive design and robust visualization tools to appeal to this segment. These solutions reach beyond sterile ratings systems to highlight societal impact and suggest trades tailored to the objective of each investor. Direct indexing and fractional-share trading will be battlegrounds as new data-driven models transform ESG from a generic concept into actionable solutions.