FT Partners’ latest installment of their “CEO Monthly Wealth & Capital Markets Tech Update & Analysis,” released in March 2025, has closely examined the evolving landscape in wealth management and capital markets technology.
Released by the fintech-focused investment bank, the report highlights key trends, transactions, and market dynamics shaping the wealth management and capital markets sector.
Amid a backdrop of consolidation, technological innovation, and shifting investor preferences, the analysis underscores how firms are navigating a complex environment to capture growth opportunities in 2025.
A central theme of the report is the accelerating pace of consolidation within the fintech and wealth tech space.
FT Partners notes a surge in mergers and acquisitions (M&A) as companies seek scale, synergies, and expanded capabilities.
High-profile deals, such as those in the robo-advisory and trading platform sectors, reflect a maturing market where firms are consolidating to compete with traditional giants like Goldman Sachs and newer players like Robinhood.
This trend aligns with broader economic pressures, including rising interest rates and tighter venture capital funding, pushing smaller startups to merge or be acquired by larger entities with stronger balance sheets.
The report also emphasizes the transformative role of technology in wealth management.
Artificial intelligence (AI) and machine learning are increasingly embedded in platforms, enhancing personalization and risk assessment for clients.
Companies like Wealthfront and Betterment are cited as leaders in leveraging AI to offer low-cost, tailored investment solutions, pressuring traditional advisors to modernize.
Meanwhile, blockchain and tokenization are reportedly gaining traction in capital markets, with firms exploring digital assets to streamline trading and settlement processes.
FT Partners highlights how these innovations are narrowing the gap between retail and institutional investing, a shift that’s reshaping market access.
Market performance data in the report reveals a mixed picture. While fintech valuations have stabilized after the 2022-2023 downturn, investor caution persists.
Public fintech stocks, tracked via indices like the FT Partners FinTech Index, have seen modest gains in early 2025, buoyed by optimism around regulatory clarity under a pro-business U.S. administration.
However, private market funding has slowed, with venture capital deployments dropping 15% year-over-year, signaling a flight to quality.
Established players with revenue models—such as payment processors and custody providers—are attracting the bulk of investment, while early-stage startups face heightened scrutiny.
Transaction highlights underscore the report’s consolidation narrative.
Notable deals include a rumored tie-up between a wealth tech platform and a regional bank, aiming to blend digital tools with physical branch networks.
Financing rounds, though fewer, are larger, with late-stage firms like Apex Fintech Solutions securing nine-figure sums to fuel expansion.
FT Partners also flags the growing interest in cross-border M&A, as U.S. firms eye European and Asian markets to diversify revenue streams.
Looking ahead, the report identifies a number of significant challenges and strategic opportunities.
For instance, regulatory uncertainty, particularly around digital assets and data privacy, remains a hurdle, while cybersecurity risks loom large amid rising digitization.
Yet, the convergence of wealth and capital markets technology offers a solid foundation ground for ongoing innovation.
FT Partners predicts in its extensive report that 2025 will be a pivotal year, with consolidation and tech adoption driving the next wave of growth—provided firms can balance scale with agility in an increasingly competitive field.