As the financial landscape evolves, wealth management firms must be at the forefront of navigating seismic shifts in client expectations, technological innovation, and sustainability. 2025 is set to be a big year for wealth.
As we stand at the crossroads of profound shifts in the global wealth landscape, Gareth Wilson, global banking industry leader at Capgemini, believes wealth firms are evolving to engage families, address intergenerational wealth transfer, embrace emerging industries, and leverage technology to remain relevant and impactful in a rapidly changing world.
The landscape of wealth management is undergoing a seismic shift as firms increasingly focus on engaging with entire families rather than solely individual high-net-worth (HNW) clients.
Wilson observes: “We are seeing an increasing number of firms center their attention on engaging with families alongside individual HNW clients, to foster long-term relationships and ensure intergenerational retention of wealth.”
This shift is influencing firms to build younger and more diverse adviser teams. “These teams strengthen connections with the next generation by aligning with their perspectives, discussing investment strategies, and resolving potential conflicts,” Wilson explains.
Key strategies include building diverse and youthful adviser teams that can relate to the next generation. These teams are essential for discussing modern investment strategies and mediating family dynamics. Additionally, financial education is becoming a cornerstone, equipping younger generations to assume leadership roles.
Wilson highlights Standard Chartered’s collaboration with INSEAD, which supports next-gen clients in Asia through a Young Entrepreneur Programme offering mentorship and industry insights.
Wealth firms are also adjusting their focus to cater to individuals in non-traditional industries, such as fine arts, sports, and entertainment. These careers often bring unique financial complexities, prompting the industry to develop bespoke solutions.
“Given the rise in emerging talent across fine arts, sports, and entertainment, the industry is recognising the unique financial challenges that these professionals face as they navigate non-traditional career paths,” Wilson explains. “By offering tailored financial advice, firms aim to foster early relationships with these individuals, who may evolve into high-value clients as their careers progress.”
As these professionals navigate volatile and often unpredictable career paths, the industry’s proactive engagement could secure lasting relationships with this untapped clientele. “I anticipate a growing push from the industry to support this clientele,” Wilson adds.
As trillions of dollars are expected to change hands over the coming decades, intergenerational wealth transfer has become a focal point for wealth management firms. However, the challenges are significant.
“The intergenerational wealth transfer has become one of the biggest areas of focus for wealth firms, big and small, as failure to address this need can lead to significant client attrition,” warns Wilson.
He highlights Capgemini’s World Wealth Report 2024, which found that 77% of ultra-high-net-worth individuals (UHNWIs) expect their wealth firms to play a pivotal role in facilitating wealth transfer.
Beyond client expectations, regulatory and tax complexities add another layer of difficulty. “With anticipated hikes in the US estate tax by 2026, the need for expert guidance is more pressing than ever,” notes Wilson.
Family offices, traditionally serving UHNWI clients, are evolving to meet these challenges. “Family offices are increasingly dependent on traditional wealth firms for core investment management services while adapting to shifting asset allocation preferences and a growing interest in alternative investments,” Wilson explains.
Programmes like Citi Private Bank’s Citi Latitude exemplify tailored solutions for family offices, focusing on intergenerational strategies.
“In moments like this, when the opportunity and challenge present itself, only those firms with the willingness to rethink, invest, and innovate will be able to adapt and retain the right to be a trusted adviser to their clients,” Wilson emphasises.
As environmental, social, and governance (ESG) considerations take center stage, wealth firms face mounting pressure to ensure transparency and accountability in ESG reporting.
“Transparency and accountability are crucial to rebuilding trust,” Wilson asserts. “Our research shows that 68% of HNWIs now request ESG scores when investing, underscoring the rising importance of sustainability.”
Regulatory measures like the EU’s Corporate Sustainability Reporting Directive (CSRD) and the U.S. SEC Climate-Related Disclosures are driving this change. “These initiatives reflect the global push toward enhanced accountability and transparency in sustainability practices,” Wilson explains.
Firms like JPMorgan are leading the charge with platforms such as Sustainable Investment Data Solutions, which provide institutional investors with reliable ESG data.
“To address greenwashing risks, firms must establish standardised ESG reporting metrics and tackle data inconsistencies through robust governance frameworks,” Wilson advises.
He highlights Capgemini’s Business for Planet Modelling as a prime example of leveraging technology to align financial decisions with sustainability goals. “This groundbreaking approach creates a strategic digital twin of a business, helping firms simulate various scenarios and make smarter climate-aligned investments.”
The maturation of blockchain infrastructure is revolutionising capital markets by enabling the tokenisation of real-world assets (RWA). Wilson believes this shift is poised to democratise access to traditionally illiquid assets and unlock new investment opportunities.
Blockchain adoption has moved beyond privacy concerns to establish robust frameworks for RWA tokenisation. According to Wilson, early adoption will likely focus on asset classes with minimal regulatory barriers and significant market potential.
“Advancements in cross-chain interoperability will be pivotal for mainstream adoption,” he notes, as it will enable seamless transactions and collaborations across diverse blockchain networks.
The lack of standardisation and security concerns pose challenges to cross-chain interoperability. Wilson underlines that industry collaboration, and the adoption of strong risk management practices are essential to address these barriers.
The finance sector has already seen promising examples of tokenisation, including JPMorgan’s Onyx Digital Assets supporting Fidelity International’s tokenisation of a money market fund.
Moreover, Wilson envisions significant opportunities for tokenisation to transform other sectors, such as real estate, by offering fractional ownership and enhancing liquidity.
Generative AI is revolutionising wealth management by enhancing productivity and personalising client engagement.
“Generative AI is now seen as a fundamental component of the wealth manager’s toolbox,” says Wilson. “It is enhancing the way advisers assist clients by automating tasks and offering personalised insights.”
He describes how generative AI can analyse vast amounts of unstructured data, such as financial history and behavioural patterns, to create a comprehensive 360-degree view of clients. “This tailored approach allows advisers to deliver personalised strategies and solutions that meet the unique needs of each client.”
Firms are already reaping the benefits.
“For example, Morgan Stanley’s Debrief, launched in 2024, summarises meetings and drafts emails, potentially saving advisers 500,000 hours annually,” Wilson highlights. “As AI copilots take over time-consuming tasks, advisers can focus on building deeper client relationships.”
“The AI revolution is here to stay,” he declares, predicting further innovations that will redefine the wealth management industry.
Wilson identifies several key trends driving the future of wealth management, from customer-centric innovation to technology-enabled global solutions.
The need for real-time insights, robust security systems, and modernised data infrastructure is reshaping client experiences. “Winning in this industry requires a reimagination of engagement across channels during moments that matter,” Wilson accentuates.
Nonetheless, technology is closing gaps between traditional and emerging markets by offering consolidated views of global assets and enabling omni-channel client interactions. Automated compliance processes are also simplifying adherence to multi-jurisdictional regulations.
As firms navigate these transformations, Capgemini stands out as a key partner. “We offer modular, plug-and-play solutions using microservices, APIs, blockchain, and quantum technologies,” Wilson shares. “This approach enables firms to deliver enhanced customer journeys without lengthy implementation timelines.”
“Our solutions help wealth management firms build differentiated capabilities without disrupting their core systems,” Wilson concludes, positioning Capgemini as a trusted partner in this era of transformation.
“Winning in this industry requires a reimagination of engagement across channels during moments that matter.”
"Wealth in 2025: what is the best strategy?" was originally created and published by Private Banker International, a GlobalData owned brand.
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