What will the financial planning industry trends be in 2024?

1 min readLast updated April 10, 2024by Unbiased team

In 2024, financial planning industry trends will encompass integrating AI-driven technology, personalized and holistic financial planning and regulatory compliance, and continued professional development for financial advisors.


  • Financial planning technology is streamlining and improving financial advisory services.

  • According to Statista, the average AUM for robo-advisors is projected to reach $70.84 per user in 2024.

  • A hybrid approach gives the best of human and robo-advisors, allowing for personalized and unbiased financial planning.

The future of financial planning: trends to watch

When robo-advisors entered the financial planning scene, many saw them as disruptors and expressed their skepticism. However, with the rise of AI, these FinTech platforms have evolved significantly since their inception. They are now considered valuable tools for advisors looking for a leading edge in a fast-paced society with younger investors.

The rise in robo-advisors

Since the anticipated market segment growth for robo-advisors is 7.75% between 2024 and 2027, it makes sense that financial advisors know how to find the right tools to complement their services and give them a competitive edge in a fast-paced market. As it is, many banks and wealth management services in the US and globally already benefit from combining their soft services and expertise with robo-advisors.

However, how do you choose the best robo-advisor to complement your business and give your clients well-rounded financial advice? Firstly, finding the best robo-advisor involves understanding its evolution, assessing key features, and assessing how it aligns with your needs as well as your clients' needs. 

Simpler robo-advisors offer basic portfolio management at what is known as 1.0., but now they typically offer a wider range of financial services, going up to level 4.0:

  • Comprehensive financial planning technology.

  • Retirement planning guidance.

  • Tax optimization strategies.

  • Personalized goal tracking.

  • User interface for desktop and mobile devices.

  • Intuitive, user-friendly platforms for enhanced user experience (UX).

For financial advisors, the challenge lies in selecting the best robo-advisor to complement your practice. Factors to consider include:

  • Platform reliability.

  • Investment methodology.

  • Fee structures.

  • Customer support.

  • Ability to integrate with existing systems.

  • Customization options.

  • Amount of control offered.

It may be a trial-and-error process initially to find the best robo-advisor, but it’s a process that’s worthwhile as it highlights your commitment to progress and moving with current trends.

Increased popularity in personalized financial planning

In recent years, there's been a notable surge in the demand for personalized financial planning solutions. This surge is driven by investors seeking tailored strategies to meet their unique goals and circumstances.

While financial advisors should note that robo-advisors can give tailored advice depending on inputs and algorithms, it’s not quite the same as receiving personalized advice from a human. 

Here are the perks of receiving personalized advice from a human financial advisor:

  • Personalized guidance: Human advisors offer personalized financial planning tailored to individual needs, considering factors like risk tolerance, financial goals, and life stage.

  • Holistic approach: Advisors provide comprehensive financial advice beyond investment management, covering retirement, tax optimization, estate planning, and insurance needs.

  • Emotional support: Human advisors can offer emotional support and reassurance during market downturns or significant life events, providing a human touch that algorithms cannot replicate.

  • Flexibility: Humans can engage in face-to-face meetings or virtual consultations.

  • Soft skills: Communication, negotiation, critical thinking, empathy, and influencing are some of the soft skills financial advisors need to personalize their services. In fact, the rise in AI is spurring an increase in soft skills requirements for improved client services, so it’s definitely something worth nurturing in your firm.

Improvements in financial planning technology

Financial planning technology has evolved significantly, revolutionizing how advisors deliver services and clients manage their finances. Below are some of the improvements noted in the last year:

  • Enhanced data analytics

  • The integration of AI and machine learning

  • An improved user experience

  • Improvement in security measures.

In 2024, we can expect to see further evolution in robo-advisors, including the suggestions below:

  • AI-powered personalization

  • Predictive analytics for market trends

  • Integration of blockchain technology

  • The expansion and inclusion of more virtual reality (VR) and augmented reality (AR) tools.

A glance at Statista projections shows how financial planning industry trends are embracing robo-advisors and financial planning technology:

  • The projected average assets under management (AUM) per user in the US robo-advisor market in 2024 is $70.84k.

  • The projected AUM for robo-advisors in the US in 2024 is $1,459.00bn.

  • The projected number of US users in the robo-advisor market by 2027 is 21.120m.

  • The robo-advisor market is expected to show an annual growth rate of 7.75% between 2024 and 2027.

The rise of AI

The rise of AI in financial planning has transformed how financial advisors deliver services and how individuals manage their money. Here's a summary:

  1. Automated investment management: Robo-advisors use AI algorithms to automate investment management processes, providing personalized investment recommendations and optimizing portfolio performance.

  2. Predictive analytics: AI-powered predictive analytics enable financial planners to forecast market trends, identify risks, and make informed investment decisions more accurately.

  3. Personalized financial planning: AI-driven personalization tailors recommendations to individual clients' goals, preferences, and risk profiles, enhancing client engagement and satisfaction.

  4. Fraud detection and security: AI technologies detect fraudulent activities and enhance cybersecurity measures in financial services, safeguarding sensitive information.

  5. Chatbots and virtual assistants: AI-powered interfaces provide real-time customer support and assist with basic financial tasks, enhancing accessibility and convenience for clients.

  6. Regulatory compliance: AI technologies streamline regulatory compliance processes, helping financial institutions mitigate regulatory risks.

  7. Risk management: AI-driven risk management tools assess and mitigate various types of risks, enhancing the resilience of financial institutions.

Financial planning law and regulation changes

The widespread adoption of automated financial planning technology will likely affect changes in legislative, regulatory, and interpretive developments at the federal and state levels in 2024. Regulatory updates may be affected by factors like market conditions, consumer protection concerns, technological advancements, and legislative priorities.

To stay informed about potential changes in financial planning laws and regulations, professionals should monitor the following regulatory agencies:

What does the future of financial planning look like?

The future of financial planning will likely involve a hybrid model that combines the benefits and strengths of human advisors with the efficiency of technology-driven solutions. Therefore, financial advisory firms should adopt financial planning technology to avoid falling behind.

Despite the widespread adoption of automated platforms, many people still need and prefer human financial advisors for emotional support and trust, holistic financial planning, adaptability, flexibility, and complex decision-making scenarios.

Therefore, financial planning industry trends will focus on integrating human expertise and technological innovation, enabling financial advisors to remain relevant and competitive.

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Unbiased team

Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.