Professional Adviser: Rewriting the rules of engagement: Innovating for the future of wealth and financial advice

The next generation of investors is even more diverse and digital-first, and their expectations won’t be met with legacy models, writes Sneha Shah.

As significant amounts of assets change hands in the Great Wealth Transfer, financial institutions face a defining moment: evolve or risk becoming irrelevant.

The next generation of investors is even more diverse and digital-first, and their expectations won't be met with legacy models.

Technology is already rewriting the rules of wealth, so the industry must rethink how to engage, advise, and innovate.

Hyper-personalisation and fintech disruptors are reshaping financial advice. But the real challenge isn't just about adopting new tools—it's also about reimagining for whom wealth management is built. Women are projected to inherit 70% of wealth being transferred over the next 20 years, yet financial services remain largely designed for legacy investors. This is a once-in-a-generation opportunity to create a more inclusive, intelligent, and impactful wealth ecosystem.

Women, wealth, and the power of personalisation

Women will soon control more wealth than ever before, so advisers must lean into understanding how to best serve these shifting demographics.

While there's no silver bullet to attracting and retaining a more diverse set of clients, advisers can adopt practices to help ensure their value propositions appeal to a broader makeup of investors. By tailoring services to each client, a hyper-personalised approach is becoming the new standard. AI-powered insights have allowed technology companies to suggest products and content based on an individual's habits.

For example, Netflix suggests movies or shows that align with interests, and Spotify can create customised playlists for each listener. These platforms provide the personalisation that has earned a loyal customer base.

Historically, providing hyper-personalisation in financial advice has been difficult, as keeping up with the complexities of each client's needs and simplifying investment complexity can overwhelm the most seasoned of wealth managers. But modernising infrastructure and adopting emerging technologies can help overcome these challenges, enabling bespoke services for a wider range of individuals.

AI, analytics, and the future of financial advice

The Great Wealth Transfer will lead to assets changing hands from baby boomers to Gen X and millennials. The majority of people in these latter generations are digital natives with technology baked into their lives, and AI will have more impact than just automating processes—it has the potential to make advice more strategic, insightful, and relevant.

Data is the foundation of AI, and data is the key to unlocking a personalised wealth experience. Its use goes beyond AI, as digital native investors understand the importance of data-driven insights when making decisions, and they will expect the same from their advisers. In order to shift towards a strategy that appeals to the next generation of investors, advisers need to understand how to garner and provide insights from available data when making decisions.

Thinking beyond technology

While technology is imperative to the future of wealth management, it's only one part of the equation. The intergenerational wealth shift is driving an increasing demand for alternative investments, as the need for personalisation and investment choice soars.

This shift is breaking barriers, with innovation democratising opportunities once reserved for the ultra-wealthy. There are efforts across the industry to broaden access for public markets to private markets, and according to EY, retail investors now see digital assets as a key component of their holistic wealth strategy.

As a result, advisers will need to evolve their mindsets, knowledge, and investment models amid the Great Wealth Transfer. The industry has the opportunity to adapt and accelerate innovation to cater to a more diverse range of investors.

The next generation of investors isn't waiting for the industry to catch up. They're seeking personalised, digital financial experiences. Wealth management must evolve to ensure it serves the full spectrum of investors. By embracing innovation with intention, the industry has the opportunity to redefine financial advice for decades to come.

Important information

The following information can be sourced to Rethinking65:
•    Women are projected to inherit 70% of wealth being transferred over the next 20 years.

The following information can be sourced to EY:
•    Retail investors see digital assets as a key component of their holistic wealth strategy.