Updated
Updated · InvestmentNews · Aug 10
Traditional Wealth Firms Missed $1.5 Trillion in Assets as AI and Personalization Lagged
Updated
Updated · InvestmentNews · Aug 10

Traditional Wealth Firms Missed $1.5 Trillion in Assets as AI and Personalization Lagged

1 articles · Updated · InvestmentNews · Aug 10

Summary

  • Capgemini said wealthtech and other new-age rivals captured $1.5 trillion in new assets under advice from 2022 to 2025 that traditional wealth managers failed to win.
  • 88% of high-net-worth clients now use multiple firms to access alternatives, while exclusive single-firm relationships fell to 19% from 39% over six years, underscoring how client expectations have shifted.
  • 42% of wealthy clients said they had to restate financial goals to the same firm more than once, a sign that many firms still lack the unified data and workflows needed for true personalization.
  • AI could cut advisors' operational workload by about 50%, Capgemini said, but the biggest gains come when it is embedded across the tech stack to support proactive advice rather than isolated admin tasks.
  • Smaller independent and robo-advisors are moving faster because they face less complexity, while larger firms need senior leadership to treat technology governance as a core growth strategy.

Insights

As traditional wealth managers bleed $1.5 trillion to agile tech rivals, can legacy firms truly pivot before losing their wealthiest clients forever?
With 88% of wealthy clients now splitting their assets, what hidden AI strategies are smaller wealthtechs using to steal the competitive edge?