The wealth management industry is undergoing profound transformation. Generational wealth transfers, new client expectations, the rise of digital assets, and escalating regulatory demands are reshaping how firms serve their clients.
These aren’t just abstract market forces—they’re shaping everyday client conversations, product design, and how firms structure their advisory models. Below we explore the key themes defining the industry next year.
Generational wealth transfer: A once-in-a-lifetime shift
The transfer of trillions in wealth from one generation to the next is now well underway. This isn’t simply a handover of assets—it’s a fundamental reshaping of client expectations. Younger generations often have different expectations regarding the type of relationship with advisors, see different investment opportunities, and prefer different channels for interacting with their wealth managers.
As stated in their 2025 Global Wealth Research Report, EY estimates that US$80 trillion will change hands over the next two decades, yet half of clients feel underprepared to manage intergenerational transfers. This means firms must build trust not only with today’s clients but also with their heirs. Success will depend on creating multi-generational strategies that go beyond traditional estate planning.
Wealth managers who can connect with entire families, offer education to younger heirs, and design products aligned with new generational needs will be best placed to retain and grow assets under management.
According to EY's report, what's striking is that Boomers feel no better prepared than Millennials despite their experience. Across wealth bands, from mass affluent to UHNW, confidence remains low. At the same time, two-thirds of clients see preparing their estate for transition as “very or extremely important.”
For wealth managers, this is both a retention risk and an opportunity: clients want multi-generational planning but often aren’t receiving it. Firms that can engage heirs early and build trust across generations will be best positioned to capture and retain assets in motion.
Digital and hybrid models are the new standard
Clients no longer accept the trade-off between personalisation and scalability. Digital-native investors want seamless technology experiences, but they also value human reassurance when it matters most. Younger clients expect the convenience of digital platforms and the reassurance of human advice and EY’s survey confirms this.
The winning formula is a hybrid advisory model: intuitive digital tools for self-service and monitoring, paired with advisors who are available for complex or emotional decisions. This is as much about workflow design as it is about technology. Firms need to ensure that advisors are supported by data, insights, and compliance checks embedded into their daily tools—allowing them to serve clients at scale without sacrificing personal connection.
ESG and value-based investing move to the core
Sustainability and purpose are no longer niche interests—they’re now central to many clients’ decision-making. EY found that 39% of clients are interested in ESG or value-based investments, and 42% want to learn more about climate-aligned opportunities, such as renewable energy.
For wealth managers, this shift means moving ESG from a “box-ticking” exercise to an integrated investment philosophy. Clients expect to see their values reflected in portfolio construction and reporting. Firms must be prepared to demonstrate impact clearly and credibly, or risk losing trust.
Digital assets: Beyond the hype cycle
Cryptocurrencies and tokenised assets have been through volatility, but client interest remains high. For many younger investors, digital assets are part of a diversified portfolio—and they expect their wealth managers to at least be able to discuss them. In fact, EY reports that 33% of investors already hold some digital assets, while another 31% want to learn more.
Firms don’t need to offer direct crypto exposure to remain relevant, but they do need a clear, transparent stance on digital assets. Whether it’s education, research, or partnerships with regulated providers, advisors who ignore the topic risk alienating a growing segment of clients. Advisors must educate themselves and their clients—not just on cryptocurrencies, but on tokenisation, NFTs, and the evolving DeFi ecosystem.
Compliance and technology: From burden to business enabler
Amid these shifts, compliance remains a constant challenge especially for complex, multi-jurisdictional client relationships. Especially the rising costs of risk and the increasingly complex regulations make manual processes untenable. For wealth managers, investing in RegTech and embedded compliance solutions is no longer optional.
Tools that digitise regulatory requirements and integrate them into advisory, onboarding, and marketing workflows help reduce risk while enabling speed. With client trust on the line, digital compliance is fast becoming a competitive differentiator.
By digitising rules and embedding them directly into advisory tools, firms can reduce manual workloads, speed up approvals, and provide clients with faster, safer interactions. RegTech and AI are playing a key role here: automating routine tasks, providing real-time compliance checks, and giving management stronger oversight.
But this evolution isn’t just about efficiency—it’s about trust. Firms that can demonstrate seamless, auditable compliance will strengthen client confidence and meet growing regulatory expectations.
The rise of AI in wealth management
Artificial intelligence is moving from experimental to practical use cases. From portfolio monitoring to personalised recommendations, AI has the potential to free up advisors’ time and enhance client experiences.
According to EY's report, 60% of clients expect their wealth manager to use AI, and trust in AI is particularly high among Millennials and wealthy clients. Nearly a third of clients trust AI tools as much as—or even more than—human advisors.
The challenge for firms is to manage expectations and the key is responsible deployment and transparency about AI usage. Clients want to know that their data is being used securely and that AI tools are transparent. The most successful wealth management firms will combine AI’s analytical power with the emotional intelligence of human advisors, ensuring that technology augments rather than replaces relationships.
Key outlook for 2026
The wealth management industry in 2026 will be defined by acceleration and complexity. Generational shifts, technology adoption, and new forms of investment are converging at once. Firms that thrive will be those that embrace change holistically: embedding compliance, digital tools, and values-driven advice into the heart of their client offering.
The future isn’t just about managing money. It’s about managing trust, expectations, and purpose across generations. We—together with EY—believe that firms that success will be those that:
- Prepare clients for the complexities of intergenerational wealth transfer.
- Deliver hybrid experiences blending digital convenience with human advice.
- Put ESG and value-based investing at the centre of client conversations.
- Educate and guide clients on digital assets rather than avoiding the topic.
- Embrace RegTech, AI-enabled tools and embedded compliance to improve efficiency and trust.
In short, wealth managers must move beyond incremental improvements. In 2026, clients expect more—and they’re willing to switch providers if those expectations aren’t met.