The EY Global Wealth Research Report 2025 has recently been examining the evolving landscape of wealth management, particularly focusing on the future needs of technology and Artificial Intelligence (AI) in meeting the expectations of affluent clients. With insights derived from a survey of over 3,600 affluent individuals across more than 30 markets, the report highlights critical shifts in client sentiment and behaviour that wealth managers must navigate and reflect in their technology roadmap to remain competitive in an increasingly complex economic environment.
Client sentiment and expectations
While affluent clients generally hold positive views of wealth management services, there is notable discomfort surrounding the complexities of investments. This unease is exacerbated by economic uncertainties and geopolitical challenges. Approximately 45% of surveyed clients report facing difficulties with their investments, with 29% considering switching wealth management providers. This signals a strong demand for improved service delivery and (especially) cost transparency. Nearly half of the participants prefer fixed fee structures over traditional commission-based pricing, indicating a clear desire for clarity and predictability in their financial dealings.
This shows that wealth managers must address these concerns by enhancing communication and providing clients with a clearer understanding of their investment strategies. This includes offering detailed insights into the costs associated with services and ensuring that clients feel informed and empowered in their financial decisions.
Dynamic client behaviour
Contrary to the stereotype of wealthy clients as passive investors, the report uncovers a shift towards diversification and fragmentation in client relationships. Nearly 50% of affluent clients, especially younger individuals in high-growth markets, prefer collaborating with multiple wealth managers. This evolution necessitates that wealth managers emphasise client retention and actively engage with their existing clients.
To cater to this dynamic behaviour, wealth managers must adopt a more client-centric approach, focusing on personalised service delivery that aligns with individual client goals and preferences. This involves leveraging technology to enhance communication and provide tailored solutions that resonate with clients' unique financial situations.
Investment product preferences
Furthermore, we recognise a rising interest in alternative investments, with more than 50% of clients eager to explore diverse options. However, there remains a significant gap between client preferences and adviser awareness, indicating a need for better education from wealth managers. Particularly, younger investors show a preference for digital assets, yet advisory conversations around these investments are limited.
Wealth managers must prioritise education and communication regarding alternative investment opportunities. This includes providing clients with insights into emerging asset classes, such as cryptocurrencies and other digital assets, and ensuring that advisers are well-versed in these areas to facilitate informed discussions.
Enhancing service delivery
Enhancing service delivery is paramount, as 43% of clients feel that their wealth managers do not adequately address their needs for personalised advice. There is also a growing demand for supplementary services, including healthcare and eldercare guidance. This presents an opportunity for wealth managers to facilitate crucial wealth transfer discussions since many clients feel unprepared for intergenerational wealth issues, especially in light of the US$80 trillion expected to be transferred globally in the coming decades.
Wealth managers should consider expanding their service offerings to include comprehensive financial planning that encompasses estate planning, tax optimisation, and risk management. By taking a holistic approach to wealth management, advisers can better serve their clients' diverse needs and foster long-term relationships built on trust and transparency.
Technology integration: Artificial Intelligence
The integration of AI in wealth management presents both opportunities and challenges. Younger clients exhibit a higher openness to AI-driven solutions, while older clients express privacy concerns. Consequently, wealth managers need to integrate AI capabilities while maintaining a high level of personal engagement with their clients.
A significant percentage of clients, 28%, trust AI-driven tools comparably to human advisers, with Millennials demonstrating the highest levels of trust. This indicates that wealth managers should explore the potential of AI to enhance client experiences, such as through personalised investment recommendations and automated portfolio management, while also addressing privacy concerns through transparent data practices. Technology-triggered advice erases the doubt of personal preferences of the relationship manager.
Market dynamics and competition
The competitive landscape is evolving, with clients increasingly favouring independent advisers and digital platforms over traditional brokerage firms. This trend towards multihoming strategies has prompted wealth managers to create bespoke offerings that distinguish them in a crowded marketplace.
To remain relevant, wealth managers must innovate and differentiate their services, leveraging technology to enhance client experiences and streamline operations. This may involve adopting digital tools that facilitate seamless communication, improve access to information, and provide clients with real-time insights into their portfolios.
Wealth transfer dynamics
Concerns surrounding wealth transfer readiness are prominent, as 50% of clients believe their families lack preparedness for generational wealth needs. This gap emphasises the importance of engaging clients in proactive wealth transfer and planning discussions. Wealth managers should take the initiative to educate clients on the implications of wealth transfer and provide tailored solutions that address their specific needs.
Facilitating discussions around intergenerational wealth issues can help clients feel more prepared for these transitions, reinforcing the importance of proactive planning. Wealth managers can offer resources and tools to assist clients in navigating the complexities of wealth transfer, ensuring that families are equipped to manage their legacies effectively.
Strategic implications for wealth managers
To successfully navigate the outlined challenges, wealth managers must adopt flexible strategies that emphasise transparency while catering to the specific needs of high-net-worth (HNW), very high-net-worth (VHNW), and ultra-high-net-worth (UHNW) clients. Establishing genuine relationships and understanding the varied expectations across generations is crucial.
Additionally, wealth managers should aim for comprehensive service offerings that extend beyond mere investment guidance. This includes integrating technology into their practices to enhance efficiency and improve client interactions. By leveraging data analytics and AI, wealth managers can gain deeper insights into client preferences and behaviours, allowing them to tailor their services accordingly.
Conclusion
The wealth management landscape is rapidly evolving in response to the changing needs and expectations of affluent clients. By embracing technology, particularly AI, and focusing on personalised service delivery, wealth managers can navigate the complexities of the market and position themselves for success in the years to come.
As the landscape continues to change, those who adapt and innovate will be best equipped to meet the demands of their clients and thrive in an increasingly competitive environment. The integration of technology, coupled with a commitment to transparency and client engagement, will be key drivers in shaping the future of wealth management.
In summary, the future of wealth management lies in the ability of wealth managers to effectively integrate technology, prioritise client needs, and foster long-term relationships built on trust and transparency. By addressing these challenges and seizing opportunities for growth, wealth managers can differentiate themselves in a crowded marketplace and ensure their continued success in the evolving world of wealth management.
Interested in reading the European WealthTech Landscape Report 2025? You can read the report online here.
About The European Wealth Landscape Report 2025
The European WealthTech Landscape Report 2025 is a new WealthTech Landscape Report from The Wealth Mosaic, focused on the wealth management sector in Europe.
With the rapid pace of change in financial services, understanding technology's impact on this sector is more crucial than ever. This Europe-focused Landscape Report features a series of insightful articles that explore the trends, challenges, and innovations surrounding technology adoption in wealth management. Contributions come from a range of organisations, including AWS, Croesus, Deloitte, ERI, EY, Fincite, Finfox, First Rate, Infront, Intellect Design Arena, Moneyfarm, Raise Partner and WealthOS.
The articles you will find within the report provide valuable perspectives on how technology is transforming the wealth management industry. They discuss various aspects of technology adoption, from the latest innovations to how firms can leverage technology to enhance client engagement, streamline operations, and comply with regulatory demands.
We trust you find this report invaluable to your business needs and supportive of your understanding of the fast-moving technology marketplace surrounding the European wealth management market.
Click here for more information.
About The WealthTech Landscape Report Series
Our goal with our WealthTech Landscape Reports (WTLRs), is to collate relevant, insightful content and comments from both wealth managers and vendors operating in a specific region. Each WTLR is founded on a curated directory of hundreds of relevant technology and related solution providers to the business needs of the wealth management community in focus. The directory is supported by a rich variety of thought leadership articles and interviews with industry participants from both buy and sell side, plus a section of Solution Showcases. We also look at country, regional, and sectoral trends.
If you are interested in contributing to our editorial projects, don't hesitate to get in touch.
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