PUBLISHED DATE: 2025-08-25 07:53:26

Wealth and Asset Management 4.0

How Digital, Social, and Regulatory Shifts Will Transform the Industry

Publicis Sapient

Research Background

We conducted a comprehensive survey of 500 investment providers across 15 countries and three regions to analyze how investment firms are adapting their strategies, products, and business models to meet fast-changing investor expectations. The survey included a mix of providers by country, function, and type of firm:

Countries Surveyed

Respondents by Sector

We also surveyed 2,325 investors across wealth levels, ages, and locations to understand how well wealth management providers are meeting customer needs and expectations. The survey covered four regions: APAC, Europe, the Middle East, and North America.

Respondents by Wealth Level

Respondents by Generation

Respondents by Gender

Countries Surveyed

Maturity Methodology

A prime objective of this research was to determine what constitutes digital leadership in the wealth and asset management industry. ThoughtLab assessed firms using two key criteria:

  1. Progress on digital transformation across 12 business dimensions
  2. ROI on digital investments in 24 business areas

Organizations were categorized into three maturity stages:

Digital Maturity Framework

Incumbents Jump Ahead in Digital Competitiveness

Five years ago, fintechs led in digital innovation. Now, trust firms, wealth advisory groups, and retail asset managers are furthest ahead in digital maturity, followed by broker-dealers and private banks. These incumbents are now more digitally advanced than fintechs, due to larger size, deeper investment in digital transformation, and acquisition or development of fintech capabilities.

Some incumbents, such as institutional and alternative asset managers and family offices, are lagging. Family offices are the furthest behind, with more than half just starting their digital journeys. Larger firms are more digitally advanced: only 3% of firms with over $100 billion in AUM are beginners, while 40% are leaders. North American firms are the most mature; APAC firms are trailing slightly.

Maturity Stage by Firm Size (AUM)

Maturity Stage by Firm Type

Maturity Stage by Region

Digital Transformation Boosts Performance Across Key Indicators

As firms advance in digital transformation, they see steady improvement in key performance indicators:

The Big Shift: The Pandemic Redefined Investor Views, Relationships, and Behaviors

Views on Investing

Relationships with Advisors

Behaviors and Fees

Accelerated Market Megatrends

Megatrend 1: Shift to Digital

Megatrend 2: Investing with Purpose

Megatrend 3: Democratization

Megatrend 4: Higher Standards

Megatrend 5: Transparent, Lower Fees

Megatrend 6: Switching Providers

Digital Engagement Becomes the Norm

Wealth firms expect 75% of all interactions with investors to be digital in two years. Investors agree: mobile apps will be the primary mode of engagement, followed by websites and virtual conferencing. Use of websites, email, messaging, and texting is declining, while virtual conferencing and social media are on the rise. Investors want a blend of personal and virtual contact in the future.

Current Channel Use vs. Future Preference

Primary Engagement Channels Providers Expect in 2 Years: 75% Digital, 25% Non-digital

"The end-goal of a financial manager should be to create a frictionless experience for customers when they want to engage, how they want to engage, and in what channel they want to engage, in real time." — David Donovan, Financial Services Practice Leader, North America, Publicis Sapient

Mobile Investing Comes of Age

Investors will want to carry out most activities from their mobile devices in less than two years. Providers understand this trend, but some underestimate the future dominance of mobile apps and overestimate website usage.

Channel Usage in Two Years: Investors vs. Providers

Accessing Account Information:

Accessing Market Insights and Analysis:

Learning About Products and Services:

Opening Accounts:

Activities for Which Investors Will Use Mobile Apps the Most:

Where Websites Will Be Used the Most:

Where Virtual Conferencing Will Be Used the Most:

Where Phone Calls Will Be Used the Most:

Where Face-to-Face Will Be Used the Most:

The Shift to Digital: Myths and Realities

Myth #1: Digital is for the young and mass market

Myth #2: Millennials only want to do things digitally

The Rise of Social Impact Investing

Wealth providers recognize the growing importance of social impact investing to their clients. Four out of ten report that senior management is committed to social and cultural values, both in operations and investment. Regulation is also increasing the impact of ESG.

Most ESG Driven Countries: Japan, France, United States, UK/Ireland, Switzerland, Germany

Myths About ESG Investing

Myth 1: Younger generations care more about social and sustainability issues

Myth 2: Wealthy investors care less about ESG goals

Democratization of Investment Products and Services

Clients across generations and wealth levels are seeking more specialized products. While about three-quarters of investors use actively managed mutual funds now, this will drop slightly in two years, with growth in passive funds and individual securities. Over two-thirds plan to use alternative investments such as hedge funds and private equity. Investors are also looking to boost alpha through specialized products like IPOs, tax-exempt investments, commodities, derivatives, REITs, and structured products. As the population ages, pensions, annuities, and whole life products are moving up the priority list. Crypto remains divisive.

% of Investors Planning to Use Specialized Products in 2 Years

% Investors Using Traditional Products Now and in 2 Years

Wealth Management Service Needs Converge Across Segments

Demand for personalized, goal-based planning and other specialized services continues to grow, blurring differences across segments. More than half of investors use personalized planning services, and almost half take advice on non-investment financial services. In the future, the biggest growth areas will be healthcare and retirement planning, next-generation succession planning, and real estate investment advice.

Services Investors Most Use Now

Services Used More in 2 Years (Growth)

Investors Expect Firms to Meet Higher Standards

Investors expect their advisors to act in their best interest, ethically, and with integrity. Some, especially the richest, will switch accounts if they don’t. Investors value ethical business practices, leadership vision and integrity, and inclusion when selecting and evaluating wealth management relationships.

Best Ways to Build a Relationship

Key Criteria When Selecting Firms

59% of billionaires say ethical business practices are a key selection criterion. 48% say supporting social and philanthropic initiatives is the best way for a firm to start a relationship. 46% moved over 20% of their assets to another firm last year because the culture was more aligned with their social values.

Regulators Are Upping the Stakes

Governments are introducing new investor protection regulations and, in some areas, increasing taxes. Providers expect the greatest regulatory headwinds from Japan, Canada, Benelux, Australia, US, and France. Potential areas include ESG, transparency, data security and privacy, fintech, and cryptocurrency. Taxes, particularly in the US, are also expected to rise.

Top 10 Regulations on the Horizon

  1. Data privacy (55%)
  2. Cybersecurity (50%)
  3. Fintech-related regulation (40%)
  4. Investor protection (36%)
  5. Anti-corruption (33%)
  6. Risk management (33%)
  7. KYC/AML (32%)
  8. Conduct & control (31%)
  9. Individual accountability (30%)
  10. Open data and open APIs (25%)

Lower Fees and Greater Transparency

Trading increased during the pandemic, as did pricing pressures from regulators, changing fee structures, and fintech competitors. Firms are seeing the greatest pricing pressures from regulators, account aggregation, competition, low-cost passive investments, demand for new fee structures, and zero trading fees. Institutional asset managers, private banks, and retail asset managers are feeling the pricing pinch more than others.

Where Firms Are Seeing the Greatest Pricing Pressures

Feeling the Pricing Pinch: Average % of All Pressures

Fees Are a Sore Spot for Many Investors

Fewer than four out of ten investors are happy with the fees their wealth providers charge and the way they charge them. Only about a third understand how their wealth advisors are compensated. Nearly one-fifth feel they pay too much for transaction services, 16% worry about hidden costs, and 14% find it hard to understand the fees they pay for investment services. One in ten investors would transfer more self-directed investments to discretionary accounts if fees were lower.

% Agreeing with Statements About Fees

Investors Will Switch Providers to Get What They Want

One-third of investors changed providers over the last year—and 55% of billionaires did so. Over half switched to improve investment performance, while 42% transferred funds to firms that offered a broader range of products and services. Other reasons include better wealth advice, stronger digital experience, better personal service, and better pricing structures and fees. Looking ahead, 44% say they will switch over the next two years to get what they want.

% of Investors Moving Over 20% of Funds

Reasons Investors Switched Providers

Investors Are Likely to Follow Their Advisors to Another Firm

More than half of investors see advisors or advisory teams as their primary relationship. Loyalty to advisors is even higher for the mass market and billionaires. Over six out of ten investors are likely or very likely to follow their advisors to another firm; for UHNW and billionaires, this rises to seven out of ten. Baby boomers and millennials are the most likely to follow advisors; Gen Xers and Zers are the least. Men are more likely to leave with their advisors than women (67% vs. 55%).

Primary Relationship

Likelihood to Move with Advisor

Over the Next Two Years, Investors Will Look to Add Providers

Many investors will add providers over the next two years, especially as they get richer. Only 6% prefer fewer providers. Currently, investors typically have around two providers; the number increases with wealth level. Most will maintain this number, but many will add more. Almost half of Gen-Z and millennial respondents plan to add providers as they become wealthier. Diversification of risk is the main reason for adding accounts, particularly for the ultra-rich.

Fewer or More Providers in the Future?

Number of Providers Investors Work with Now

Reasons to Prefer More Providers

Investors Redefined: What Should Providers Do Differently?

To succeed in a digital era, wealth management providers must listen to what their customers are saying. Investors want providers to present innovative ideas, act in their best interest, be available when needed, and offer holistic and social impact advice. Many new demands are converging across wealth levels, so providers should focus on the person, not the demographic, and shift from a product to a client focus.

Investor Voices:

Providers Need to Assess How Well Their Offerings Align with Investor Needs

What investors want most are better ideas for investments and high returns, a simple, intuitive digital experience, providers that act ethically and in their best interests, and a wide range of products and services, including active, tax-efficient, and specialized products. Providers, however, are primarily stressing the personal relationship, with even online brokers and robo-advisory firms adding the human touch in a hybrid model.

Top 6 Ways Investors Say Firms Can Attract Them

  1. 57%: Innovative investment ideas
  2. 50%: High returns geared to risk tolerance
  3. 49%: Act in my best interest
  4. 48%: Wide range of products and services
  5. 47%: Valuable advice
  6. 46%: Available when I need them

Top 6 Criteria Investors Use to Select Firms

  1. 49%: Intuitive digital experience
  2. 48%: Ethical business practices
  3. 48%: Active management products
  4. 48%: Tax-efficient products
  5. 42%: Specialized products
  6. 41%: Leadership vision and integrity

Top 6 Ways Providers Look to Differentiate

  1. 73%: Personal relationships
  2. 52%: Investment performance
  3. 48%: Digital client experience
  4. 40%: Low, transparent fees
  5. 34%: In-depth research/analysis
  6. 29%: Holistic wealth advice

Firms Are Rethinking Their Strategies for Investor Segments

Most wealth providers will focus on going up market, while keeping plans for the mass affluent in a holding pattern. The number of firms going after billionaires will almost double, from 11% to 20%. Over 60% will sharpen focus on the high-net-worth tier. Nine out of ten providers will target Gen-X, both now and in the future. Interest in baby boomers will grow the most over the next two years, increasing by 17 points to 80%. Focus on international clients will grow from 52% to 72%, and on offshore accounts from 45% to 64%.

Key Areas of Focus by Types of Clients and Accounts

Key Areas of Focus for Providers

Wealth Level:

Age Group:

Going Deeper into Niche Opportunities for Growth

Wealth management firms see corporate executives, religious groups, and beneficiaries as key targets for future growth. Over three-quarters focus on executives, and over a third on specific religious groups (rising to nearly half in two years). The share focusing on beneficiaries will almost double to 46% in two years. Focus on retirees will also almost double, from 10% to 19%.

Investor Type Focus Now and in 2 Years

Avoiding Market Misconceptions

Rethinking Products, Services, and Fees

Firms are expanding up-market, enriching and expanding products and services, and entering new geographies. About half of broker-dealers and alternative asset firms plan to enter new geographies. Most family offices aim to enrich existing products and services, and 41% will add new ones. Trust companies will do the same, while changing distribution channels. About a third of providers will expand in their current niche and maximize cross-selling.

How Firms Plan to Change Business Strategies in Next 2 Years

Four Key Shifts Remaking Wealth Management Products and Services

Advances in technology have allowed firms to democratize their wealth management advice, reaching new clients who demand digital solutions. Four out of ten firms are democratizing their advice, products, services, and asset classes. To meet growing digital demands, 40% are automating financial planning and developing hybrid human-digital advice solutions. Advisors are also focusing on holistic advice (40%).

Shifts Reinventing Products and Services

Providers Will Offer a Wider Range of Products and Services

Almost two-thirds of providers plan to offer alternatives over the next two years—a top requirement for investors. Around four out of ten will offer private placements or venture capital opportunities. Offerings are generally in line with what clients want, but in some areas, providers could do better (e.g., commodities/derivatives, annuities).

% Providers Planning to Offer Products in 2 Years

% Providers Planning to Offer Services in 2 Years

Providers Get the Fees Right in Some Areas—But Very Wrong in Others

Most investors prefer to pay for financial planning with a fixed or hourly fee, but 44% of providers expect to charge on a performance basis or as a percentage of AUM. For non-discretionary investment, investors also prefer hourly or fixed fees, but more than a third of providers plan to charge a percentage of AUM. In other areas, such as custody, transaction services, and discretionary wealth management, providers are more in tune with investor preferences.

Investors Are Willing to Switch for the Fee Structures They Want

The mismatch between provider fee structures and what investors want is particularly large for financial planning and non-discretionary investment. While only 7% of providers expect to offer fixed fees for financial planning in two years, around a fifth to a quarter of investors would switch providers to have those fee options. Providers should consider offering more flexible options to ensure retention.

To Offset Pricing Pressures, Firms Diversified Revenue Sources During the Pandemic

Management fees remain the top fee source for firms, followed by performance and transaction fees. Investment management is the largest revenue-producing business, followed by advisory services. Private banks are the most diversified, while alternative, institutional, and retail asset managers are more heavily weighted toward investment management. Broker-dealers, wealth advisory, family offices, and online brokerages/robo-advisors are more evenly split between investment and advisory services. Trust companies lean more toward the advisory side.

Firms Will Continue to Diversify Revenue Channels and Fees Over Next Two Years

About three-quarters of providers will sharpen their focus on investment management, and over half on advisory services. Banking/lending is a major new area of focus, particularly for family offices, trust companies, and broker-dealers. Insurance is another area of growth. On the fee side, management fees will continue to be a prime focus, with big jumps in net interest income from lending expected.

Winning in a Digital-First World

Wealth firms are making fast progress in digital transformation, with an average of 46% in mid or advanced stages. Almost three-quarters are ahead in interactive CX, and over half in automated processes, AI, blockchain, and cloud. Firms have made major strides in data analytics, cybersecurity, and digitized employee experiences. About four out of ten have made progress on building an innovation mindset and socially aware organizational culture. However, they are lagging on conversation monitoring, modernized core IT, software deployment, and digital compliance.

Not All Industry Segments Are Keeping Up the Pace

Private banks, retail asset managers, and broker-dealers are speeding ahead, while alternative asset managers and family offices are falling behind. Online brokerages and robo-advisors are falling behind in some areas, possibly due to higher digital standards.

As Cyberattacks Have Risen, Firms Invested Heavily in Data Security

About half of wealth management providers made their largest digital investments in cybersecurity over the last two years. Other major investments include data analytics, public cloud, and workflow automation.

Providers Are Boosting Their IT Spend to Speed Digital Transformation

Firms plan to raise total IT spending over the next two years, with the biggest increase in AI (up 11 percentage points, a 52% jump). AI is seen as having the most positive impact. Firms will double spend on open platforms, and no-code/low-code platforms will grow considerably.

Firms Are Investing Heavily in Digitizing the Front Office, Especially for Onboarding

Digital onboarding has become table stakes. Digital support for financial planning, client relationship management, and experience are also big areas of investment. Self-service functions like marketing and channel engagement and robo-advisory are getting the lowest investments, though this varies by subsector.

Despite Focus on Digital Onboarding, Firms Are Still Not Doing Enough

Top pain points for investors in opening a new account are providing authorizations and transferring funds from outside accounts, but only about one in five providers have digitized these processes. Providers have chiefly addressed digitizing regulatory KYC checks and basic procedures for opening an account online. Providers will ramp up efforts to digitize onboarding over the next two years, particularly adding account features, conducting UBO checks, and adding managed account proposals.

Robos Lead in Digital Onboarding Now, but Incumbents Will Jump Ahead in Two Years

Currently, robo-advisors, investment advisory groups, and retail asset management firms are furthest ahead in digital onboarding. In two years, institutional asset managers and private banks plan to overtake them.

Many Investors Are Not Satisfied with Their Digital Experiences

Only 18% of investors are very satisfied with the digital experience offered by their primary providers. The biggest complaint is the inability to see all investments in one place (44%), followed by lack of cooperation between providers (25%), and issues with mobile and tablet apps and websites.

Leaders Invest More Heavily in Digitizing Middle and Back Office

Leader firms invest more in data analytics, client account servicing, reporting, cybersecurity, and portfolio accounting. Leaders spend almost three times as much as others in tracking and analyzing corporate culture.

Over the Next Two Years, Firms Will Reinvent How They Get Work Done

Work for advisors and staff will become more digitized, making digital engagement more important than personal interaction for a third of firms. Remote working and web conferencing have made distance less relevant. More than a third of firms expect advisors to continue working from home or in hybrid arrangements. Automation will cut jobs for about one in five firms, but will increase productivity and job satisfaction.

The Financial, Operational, and Strategic Benefits from Going Digital

Almost half of all firms are seeing increased revenue from digital transformation now, and almost as many expect improved profitability in the next two years. Operational and strategic benefits include improved planning and decision-making, greater innovation, enhanced customer analysis and retention, and faster creation of new products. Leaders are seeing greater benefits than others, especially increased revenue.

Digital Transformation Supercharges Performance Across Multiple KPIs

Firms have seen a nearly 14% increase in productivity as a result of digital transformation, contributing to an 8.1% rise in assets under management. Digitization has also lifted revenue, market share, and shareholder value, though it has increased costs as firms invest in digital.

Shift Toward Holistic Financial Planning Is Paying Off

Financial planning is the area getting the highest return on digital investment for wealth management firms. Investments in finance and auditing, client reporting, and portfolio accounting are also generating high returns. Leaders are getting high ROI from digital investments in risk management, financial planning, customer identity management, portfolio accounting, and robo-advisory.

Calls to Action

“In wealth management, the human touch will always be there, because wealth and money have an emotional attachment, and that comes with other people. Technology can augment that attachment, helping advisors be more efficient with their time with clients while allowing them to continue to create deep emotional bonds. But shopping for a portfolio will never be like flipping through Netflix suggestions to find a movie to watch, where you never talk to anybody. I don't see the human advisor going away anytime soon.”
— Cory Haberkorn, Industry-Go-To-Market Senior Manager, Salesforce

David Donovan, Financial Services Practice Leader, NA, Publicis Sapient

Put frictionless experiences in your clients’ pockets
“Clients will want to access investment advisors on their mobile. People think about finance when they’re traveling, buying a house, or shopping. The more a financial platform can be connected to a client in a personalized way around moments that matter, the better the result for advisors and their clients. In essence, investors want their wealth managers to be personal CFOs that sit in their pockets.”

Brie Williams, Vice President, State Street Global Advisors

Leverage human capital
“Wealth management companies need to be thinking about whether they are the disruptors or disrupted. For industry leaders, core competencies will be business savviness, combined with the ability to build trust and leverage the technology to deliver a highly relevant experience at scale, for your clients. Beyond that, how firms truly leverage human capital will show the real opportunities for growth.”

Rohit Mahna, SVP, GM of Financial Services, Salesforce

Do more with less
“Over time, the number of financial advisors is going to shrink, while the expectations of clients—and their desire to be coached—will continue to grow. So, firms will need to figure out how to do more with less. That is where AI-driven hyper-personalization can assist. But to create the kind of advisor dashboard with the integrated tools required, firms will need to get their arms around their legacy systems and their data to make them work together.”

Andrew D’Anna, Head of Retail Experience, Charles Schwab

Create no-trade-off client experiences
“In the future, the winners will be those firms that create no-trade-off client experiences between high-touch and high-tech engagement. Clients want to control their own portfolios and make their own choices. But as they mature as investors and their needs change, they will want trusted human advice to help them through life events or market volatility. Firms that can do that in one place will be the ones that grow and scale in the future.”

Henning Stein, Global Head of Thought Leadership, Invesco Asset Management

Democratization, digital, and demystification
“The shift to digital wealth represents our brightest hope for truly democratizing investing. As an industry, we should be aiming to help as many people as possible understand how to get the most from their money. Crucially, that means digitization and democratization must go hand in hand with demystification.”

Our Partner: ThoughtLab

ThoughtLab is an innovative thought leadership and economic research firm providing fresh ideas and evidence-based analysis to help business and government leaders cope with transformative change. We specialize in analyzing the impact of technological, economic, and demographic shifts on industries, cities, and companies.

To learn more about ThoughtLab, visit: www.thoughtlabgroup.com

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