The European wealth management industry continues to undergo a profound transformation. Market volatility, inflation, and geopolitical uncertainty have added complexity to an already competitive landscape, requiring firms to adopt forward-thinking strategies to sustain growth. Meanwhile, a new generation of investors — ranging from digitally native millennials to ultra-high-net-worth individuals with increasingly sophisticated demands -— is reshaping the traditional client-adviser relationship. To thrive in this evolving environment, wealth managers must identify the critical drivers of growth, from digital innovation and hyper-personalisation to sustainable investing and alternative asset allocation.
For industry leaders, the challenge is not just identifying these drivers but translating them into actionable strategies that enhance both profitability and client experience. Growth must be pursued with a keen eye on regulatory compliance, operational efficiency, and technological adoption, all while maintaining trust and delivering value to an increasingly diverse client base. How can firms leverage AI, automation, and data analytics to drive efficiency and create differentiated offerings? How can firms optimise their business models to balance short-term performance with long-term resilience? And what role does ESG investing play in client engagement and retention? Answering these questions is essential for firms looking to stay ahead of the curve.
Forces of change:
- Digital transformation and strategic technology investments
- The ongoing rise of personalisation, and more client-centric services
- The adoption of self-service tools
- Intergenerational wealth transfer
- Offerings for new segments
- Mergers and acquisitions
- Regulatory evolution
Force of change I: Digital transformation and strategic technology investments
Digital platform revenue: Statista projects that industry revenue for digital platforms will surpass US$41 billion globally by 2025, driven by the continued pace of technological advancements.
AI as a revenue driver: A significant 80 percent of asset and wealth management organisations believe that disruptive technologies like AI will fuel revenue growth. Early adopters of 'tech-as-a-service' models could see a 12 percent revenue boost by 2028.
“Digital transformation is no longer a future ambition – it’s a present imperative. In wealth management, the firms that lead are those using technology to deliver smarter insights, deeper client engagement, and scalable, personalised experiences at every touchpoint. While many firms think they’ve ‘gone digital’, their clients will ultimately judge their success,” states Zlatko Vucetic, CEO at Infront.
The adoption of data-driven tools, AI, and automation is revolutionising wealth management by enhancing client experience, improving portfolio management, and reducing costs. To remain competitive, firms should consider the following key initiatives as they undertake their digital transformation journey:
- Enhance digital wealth platforms
- Develop mobile-first platforms that provide clients with real-time access to portfolio insights and management tools
- Integrate intuitive dashboards, AI-driven recommendations, and seamless digital onboarding processes
- Continuously improve user experience through feedback-driven platform enhancements and emerging technologies
- Leverage data, AI and data analytics for greater personalisation
- Utilise machine learning and predictive analytics to tailor investment strategies and optimise portfolio performance
- Deploy AI-powered tools to analyse client behaviour, anticipate needs, and enhance proactive engagement
- Establish robust data governance frameworks to ensure security, compliance, and ethical AI use
- Implement robo-advisory solutions
- Integrate AI-driven portfolio management tools to offer scalable, low-cost solutions for mass affluent clients
- Develop hybrid models that combine automated services with human expertise to enhance personalisation
- Ensure robo-advisers align with regulatory standards and maintain transparency in investment decision-making
By adopting these digital strategies, wealth management firms can drive efficiency, improve client retention, and future-proof their business in an increasingly technology-driven landscape.
Force of change II: The growing demand for personalisation & more client-centric services
Client willingness to pay for personalisation: Over half (53 percent) of wealth management clients are willing to pay more for personalised services. Additionally, 71 percent are open to sharing personal data to enhance service personalisation. (SOURCE: ey.com)
Investor expectations: A significant 81 percent of consumers desire customised experiences, yet only 28 percent feel companies excel at delivering them. Moreover, 78 percent of investors believe that more frequent or personalised communication could prevent them from switching advisers. (SOURCE: businesswire.com)
“Personalisation is no longer a luxury — it’s a client expectation. In wealth management, success hinges on our ability to deliver tailored advice, proactive insights, and experiences that reflect each client’s unique goals. The firms that get this right won’t just retain clients — they’ll build lasting trust and long-term growth,” suggests Zlatko Vucetic, CEO at Infront.
High-net-worth (HNW) and ultra-high-net-worth (UHNW) clients expect bespoke investment strategies, holistic financial planning, and tailored ESG solutions. To meet these evolving demands, wealth managers should focus on the following key actions:
- Deliver hyper-personalised financial planning
- Develop comprehensive financial plans that integrate tax strategies, retirement planning, estate structuring, and philanthropic goals
- Utilise data-driven insights and client data to refine and customise investment advice
- Offer dedicated relationship managers or advisers who provide ongoing, personalised financial guidance
- Adopt a holistic wealth management approach
- Expand service offerings beyond investment management to include tax optimisation, debt structuring, and intergenerational wealth transfer
- Provide a seamless, integrated experience by consolidating financial services under one platform or advisory team
- Leverage technology to offer 360-degree financial dashboards, giving clients a comprehensive view of their wealth
- Utilise behavioural finance to drive greater client engagement
- Apply behavioural finance insights to tailor investment strategies to clients' risk tolerance, decision-making patterns, and emotional triggers
- Implement AI-powered profiling tools to assess client behaviour and improve advisory approaches
- Educate clients on cognitive biases and financial behaviours to enhance decision-making and long-term engagement.
By embracing personalisation and client-centric services, wealth managers can strengthen relationships, enhance client loyalty, and differentiate themselves in an increasingly competitive market.
Force of change III: The adoption of self-service tools
ETF savings plans surge: In Germany, the number of ETF savings plans rose by 33 percent over the past year, reaching 9.5 million. Across Europe, ETF ownership increased by 19 percent, particularly among investors aged 18–34, with 80 percent accessing ETFs via digital platforms. (SOURCE: ft.com)
Digital platform growth in the UK: InvestEngine, a UK-based digital investment platform, tripled its assets in Q3 2024 compared to the same quarter in 2023. The platform's DIY investment side experienced triple the growth of its managed portfolio side, indicating a strong preference for self-directed investment options. (SOURCE: ft.com)
“Empowering clients with intuitive self-service tools isn’t just about convenience - it’s about control, transparency, and trust. As expectations evolve, the wealth managers who enable seamless, on-demand access to insights and actions will deepen client engagement and differentiate themselves in a digital-first market,” states Zlatko Vucetic, CEO at Infront.
The rise of digital self-service platforms is transforming client engagement, offering greater flexibility, efficiency, and accessibility. To stay competitive, wealth management firms should take the following steps:
- Enhance digital self-service capabilities
- Develop data-driven, AI-powered financial planning tools that enable clients to manage their wealth independently
- Integrate automated portfolio rebalancing to maintain optimal asset allocation with minimal manual intervention
- Offer intuitive, mobile-friendly platforms that provide seamless access to investment insights and financial planning features
- Adopt a hybrid advisory model
- Combine self-service digital tools with on-demand access to human advisers for personalised guidance
- Implement tiered advisory services, allowing clients to choose between fully automated, hybrid, or high-touch advisory models based on their needs
- Use AI-driven chatbots and virtual assistants to answer common client queries and provide real-time insights
- Ensure transparency and client empowerment
- Provide real-time data visualisation and reporting tools to enhance client decision-making
- Educate clients on using digital tools effectively through interactive tutorials and personalised recommendations
- Continuously improve platform usability based on client feedback and emerging technology trends
By investing in more intuitive, user-friendly, self-service platforms, wealth managers can scale their services, improve cost efficiency, and meet the growing demand for transparency and control in wealth management.
Force of change IV: Intergenerational wealth transfer
Vanguard projects that by 2030, approximately US$3.5 trillion (€3.2 trillion) will be transferred within Europe as part of the global "great wealth transfer," marking the largest intergenerational asset shift in history.
In the UK, annual inheritances currently total around £100 billion (US$132 billion) and are projected to double by 2040. However, studies indicate that 70 percent of family wealth is lost by the second generation and 90 percent by the third, emphasising the need for effective wealth management strategies. (SOURCE: ft.com)
In Switzerland, over CHF18 billion (US$22.6 billion) in assets managed by banks are expected to be inherited annually, with a rising trend. This significant transfer underscores the importance for Swiss banks to adapt their services to retain these assets. (SOURCE: ey.com)
“Europe is on the cusp of the greatest intergenerational wealth transfer in history - and with it comes both risk and opportunity. Wealth managers who succeed will be those who build multi-generational trust, adapt their offerings to younger clients’ values, and use technology to engage across the family wealth spectrum,” suggests Zlatko Vucetic, CEO at Infront.
A massive shift in wealth is underway as Baby Boomers pass assets to Millennials and Gen Z, requiring wealth managers to adapt their strategies to meet the evolving needs of younger generations. To capitalise on this transition, firms should focus on the following key actions:
- Develop tailored strategies for intergenerational wealth transfer
- Implement advisory models that address the distinct values, preferences, and financial goals of younger inheritors
- Facilitate multi-generational client relationships by engaging heirs early in the wealth planning process
- Offer financial education programmes to help younger clients navigate their inheritance and long-term financial planning
- Adapt offerings to meet the expectations of Millennials & Gen Z
- Enhance digital engagement through mobile-first platforms, AI-driven insights, and self-service financial tools
- Expand impact investing and ESG-aligned portfolio options to cater to the younger generation’s ethical and sustainability-focused investment preferences
- Increase transparency by providing real-time reporting and interactive financial planning tools
- Strengthen estate and succession planning services
- Offer specialised estate planning solutions, including tax optimisation, family governance, and trust structures to ensure a smooth wealth transition
- Develop digital estate planning tools that simplify inheritance management and document storage
- Encourage structured succession planning discussions to align wealth transfer strategies with family values and long-term financial goals
By proactively addressing the challenges and opportunities of intergenerational wealth transfer, wealth managers can strengthen client retention, build lasting relationships, and position themselves as trusted advisers for the next generation.
Force of change V: New segments and their need for tailored offerings – female investors, tech entrepreneurs, and more
Only 27 percent of wealth management firms actively target emerging high-potential segments such as women, millennials, and new high-net-worth individuals. This gap highlights the necessity for customized strategies to engage these groups effectively. (SOURCE: wealthmanagement.com)
Banks that implemented advanced client segmentation strategies experienced a 10 percent annual increase in assets under management (AUM) for high-net-worth clients, compared to a 4 percent industry average. (SOURCE: mckinsey.com)
“The face of wealth in Europe is changing - fast. From next-gen investors and digital natives to female wealth holders and entrepreneurs, new client segments are reshaping expectations. To stay relevant, wealth management needs to move beyond a one-size-fits-all approach and deliver hyper-personalised strategies that reflect diverse goals, values, and ways of engaging with wealth,” states Zlatko Vucetic, CEO at Infront.
Women, tech entrepreneurs, and start-up founders represent some of the rapidly growing wealth segments, each of which has distinct financial needs. To unlock opportunities in these markets, wealth managers should implement the following key strategies:
- Develop tailored solutions for specific demographic segments / personae
- Offer financial planning and advisory services that address life events, career trajectories, and long-term security priorities unique to each segment
- Design investment strategies that align with the ongoing preference for ESG and impact-driven portfolios
- Provide dedicated educational resources and networking opportunities to empower female investors
- Create specialised services for tech entrepreneurs & start-up founders
- Develop liquidity management solutions to help founders navigate pre- and post-exit financial planning
- Offer venture capital and private equity investment opportunities tailored to their risk appetite and business acumen
- Introduce tax-efficient strategies and succession planning to protect and grow their wealth over time
- Enhance digital-first experiences to engage new segments
- Build mobile-first platforms and AI-driven advisory tools that align with the digital preferences of younger and tech-savvy clients
- Ensure seamless access to financial insights, real-time portfolio tracking, and personalised investment recommendations
- Leverage behavioural data and analytics to refine engagement strategies and deliver highly customised financial solutions
By adapting to the unique needs of these high-growth client segments, wealth managers can expand their market reach, foster long-term relationships, and position themselves as leaders in inclusive and future-focused financial services.
Force of change VI: Mergers and acquisitions
In 2024, the European financial services industry saw a 22 percent year-on-year increase in M&A deals, totalling 784 transactions - the highest annual volume since 2015. Notably, the wealth and asset management sector experienced a surge, with deal values more than tripling from €6.1 billion in 2023 to €20 billion in 2024. (SOURCE: ey.com)
“The wave of M&A sweeping through European wealth management isn’t just about scale – it’s about strategic reinvention. Firms are consolidating to gain capabilities, expand digitally, and better serve an increasingly complex and diverse client base. The winners will be those who use M&A not just to grow, but to transform,” suggests Zlatko Vucetic, CEO at Infront.
Mergers and acquisitions (M&A) remain a key growth strategy in European wealth management, helping firms achieve scale, enhance expertise, and expand into new markets. To make the most of consolidation opportunities, firms should take the following steps:
- Identify strategic acquisition opportunities
- Target boutique firms with specialised expertise, strong client relationships, or innovative digital capabilities
- Prioritise acquisitions that align with long-term strategic goals, such as geographic expansion, ESG offerings, or high-net-worth client segments
- Conduct thorough due diligence to assess financial health, cultural fit, and regulatory compliance
- Expand through cross-border M&A
- Explore acquisitions in key European markets to diversify revenue streams and mitigate regional economic risks
- Ensure seamless integration of operations, technology, and regulatory frameworks when entering new jurisdictions
- Leverage cross-border deals to offer clients access to a broader range of investment opportunities and advisory services
- Maximise PMI (post-merger integration and synergies)
- Develop a clear integration strategy to unify technology platforms, service models, and corporate cultures
- Streamline operations to reduce redundancies, improve efficiency, and enhance client service
- Position the newly merged entity as a stronger competitor against FinTech disruptors by investing in digital transformation and innovation
By executing a well-planned M&A strategy, wealth management firms can strengthen their market position, achieve economies of scale, and enhance their ability to compete in an increasingly digital and complex financial landscape.
Force of change VII: The ever-evolving regulatory landscape
State Street’s EMEA head has warned regulators to “pause the regulatory treadmill,” citing overlapping initiatives – including SFDR, MiFID II, AIFMD, UCITS, and the UK’s new Sustainability Disclosure Regime – driving up cost complexity.
"Regulation continues to redefine the landscape of European wealth management – not as a barrier, but as a catalyst for innovation, transparency, and trust. The wealth management industry needs to not only adapt but lead by embedding compliance into its client value proposition, ensuring the industry stays ahead in a market where credibility is currency,” states Zlatko Vucetic.
Ever-evolving regulatory requirements, ESG disclosure requirements, and digital compliance, are reshaping wealth management. Firms must take the following actions to get ahead of the game, remain compliant and ensure operational efficiency:
- MiFID II (soon also MiFID III) compliance
- Enhance transparency in investment services
- Implement strict reporting and disclosure processes
- Improve investor protection through adherence to market integrity standards
- ESG regulations compliance
- Align investment strategies with the Sustainable Finance Disclosure Regulation (SFDR) and Taxonomy Regulation
- Provide clear ESG disclosures to meet regulatory expectations
- Integrate sustainable investment options into portfolio offerings
- Strengthen Anti-Money Laundering (AML) measures
- Implement robust AML policies and monitoring systems
- Ensure compliance with EU regulations to prevent financial crimes
- Regularly update AML frameworks to align with evolving regulatory standards
To stay ahead in a tightening regulatory landscape, wealth managers must enhance compliance, meet evolving ESG disclosure requirements, and strengthen AML controls - ensuring both compliance and operational efficiency.
Interested in reading The European wealth playbook for growth: insights and actions to drive success? You can read the white paper in full online here.
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