The State of Wealth in 2025

A sub-sector deep dive

Introducing the State of Wealth Report

By David Jegen and Sarah Lamont

Wealth management technology has been a historically challenging category for investors. There have always been a lot of point solutions, with a ceiling on how big they could become before being acquired by Envestnet, Orion, or another of the larger platforms.

Over the last 15 years, that seemed to change everywhere all at once with new brands, new assets, and new tech stacks. Building on the foundational elements of price decimalization, share fractionalization, and data aggregation; founders began to build bigger and bolder. Roboadvisors like Betterment and FutureAdvisor challenged the premise that paid financial advice was limited to the wealthy. Robinhood and Titan became the brokerage and mutual fund disruptors of the last-gen of disruptors like Charles Schwab and E*Trade. Private funds from giants like Blackstone and Apollo have been packaged for retail investors, while assets of the wealthy like real estate, art, and royalties have been fractionalized and/or tokenized for retail investors.

All of this has captured the attention of private equity and venture capital investors.

This month, we take a closer look at a handful of the trends we see shaping the wealthtech industry, and how startups are meeting the moment. For more, head over to the F-Prime Fintech Index to read the full report.

Tech Stack Fragmentation

The number of point solutions that advisors now juggle has nearly doubled over the last three years (from four to seven) and typically span three primary functions: CRM, financial planning, and portfolio management. As a result, RIAs struggle to maintain consistent and up-to-date client information across all platforms. Even the leading vertically integrated solutions have been built through acquisition, and therefore often fail to deliver seamless integration.

Tighter integration is therefore required across the RIA landscape, and we see three primary approaches:

1. Pre-integrated tech stacks, usually built via acquisition. For example, longtime portfolio management solution Orion acquired leading CRM Redtail in 2022, in an effort to build a highly-integrated, “most-in-one” technology suite for advisors

2. New age, all-in-one platforms built from the ground up. Platforms like Advyzon and Advisor360 have attempted to build end-to-end solutions that cover all key advisor workflows.

3. Tech stack synchronization, where providers allow RIAs to combine their favorite point solutions into an integrated, data-synchronized tech stack via API. Dispatch, an F-Prime portfolio company, is an example of this approach.

Open Banking

Once a competitive threat to incumbents, open banking via API has now become an industry standard. The practice enables financial institutions to create a fuller financial picture of their users, accelerated by a decades-long push by aggregators to give consumers the right to access their own financial data.

In our view, open banking has paved the way for open finance, and financial institutions now have a world of consumer financial data at their fingertips — thanks to aggregators like Plaid (banking), Spinwheel (an F-Prime portfolio company handling consumer liability data), Argyle (an F-Prime portfolio company handling payroll data), Canopy Connect (insurance), TaxStatus (tax), and several other players who are each doing their part to unleash a new sector of consumer financial data that was previously difficult to reach.

In the long term, we see the growing array of consumer financial data APIs coming together to create a holistic, real-time, and accurate financial identity for every consumer, resulting in easier access to financial services and more tailored financial products. We are excited to see the institutional response to technology currently impacting the market — but we are much more excited about the effect that open finance will have on the end user experience for millions of Americans.

The Rise of Alts Continues Apace

Investors are piling into alternative assets, which we define as private equity, venture capital, private debt, real estate, and infrastructure. Once overseeing $4T assets under management in 2010, these categories have more than quadrupled in AUM to $18T in 2024. As these assets scale beyond institutional investors into the hands of retail investors (resulting in LPs multiplying into the thousands), old and labor-intensive processes built around 30 year-old tech stacks will not keep up.

We see three main categories of infrastructure required to support the new influx of investors into a newly diversified alts landscape:

1. For every dollar spent on the user experience, more than five are spent in the back office on accounting, investment monitoring, and fund administration. Modernizing those processes with software that integrates external and internal resources, reduces double entry, maintains a single source of truth and automates reporting will be key to successful scaling operations. Examples include Canoe (an F-Prime portfolio company), Passthrough, Sydecar, Entrilia, LemonEdge, and Anduin.

2. New tools are emerging to extract data and analytics from alternative asset providers investment documents. Today’s startups are increasingly building API-first structured data models to make LP analytics as useful as any consumer-facing tool built for public equities. Examples include Canoe, Standard Metrics, 73 Strings, Arch, PitchBook, and Preqin.

3. As investors diversify their holdings across asset classes, aggregators are increasingly required to help with discovery, education, and execution. Fidelity and Charles Schwab offer consolidated gateways for investors in traditional asset classes — we see a similar opportunity in the alts space. Examples include iCapital, CAIS, Allocate, Moonfare, Gridline, and Titanbay.

Download the full State of Wealth report here:

F-Prime State of Wealth 2025 Report

1.74MB ∙ PDF file

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What’s your perspective? Let us know in the comments or via email at fintechindex@fprimecapital.com.