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Five Trends That Will Reshape Wealth Management in 2024


10 min read

The success of the wealth management sector is based on direct human contact. When dealing with high-net-worth clients, wealth managers must go beyond basic financial knowledge to truly empathize with their client’s unique situations and goals. To keep pace with today’s world, wealth managers need to embrace innovative technologies and concepts that foster personal connections.

Over the past few decades, the sector has expanded along with the global economy, with a forecast to reach $128.90tn in 2024. Thanks to advances in AI, cloud computing, and smart automation models, wealth managers can expand their operations without negatively impacting the quality of service they provide to their existing clients. 

As we move forward in this article, we’ll look at how these changes are shaping wealth management. We’ll explore topics like personalized investing with direct indexing, adapting to different generations, and the impact of digital changes. Let’s begin and paint a picture of what the future holds for wealth management in 2024 and beyond.

Understanding Wealth Management

Money management and investment strategy are two components of wealth management. It covers not just financial management but also things like planning for retirement, dealing with inheritance taxes, and preparing estates.

One of the big advantages of wealth management is that it gives clients a single place to go for all their financial needs and advice. This makes it easier for them to make smart financial decisions and manage taxes effectively throughout their lives.

Typical wealth management services include:

  • Accounting services
  • Charitable giving plans
  • Education planning
  • Estate planning
  • Insurance advice
  • Investment advice
  • Retirement planning
  • Risk mitigation
  • Stock options planning and advice
  • Tax services (including tax efficiency services)

The best audience for wealth management services are those who already have a lot of money and whose families have complex financial planning and management needs.

Wealth Management Industry Overview

Wealth managers are financial experts who take care of all the financial needs of their clients for a fixed fee. Fees vary a lot between firms and even between accounts at the same firm, but on average, they are about 1% of the assets being managed.

To serve their clients efficiently, wealth management firms often follow one of two paths: either collaborative or single office.

Collaborative WMSingle Office WM
DescriptionA wealth management approach where a company or Certified Financial Planner (CFP) manages a household’s financial planning and investment management with the help of various client advisors (insurance, legal, tax, etc.)A wealth management approach where individuals and families receive all their financial services from one company, often referred to as “family offices” in large financial institutions and brokerage houses
Service ProvidersVarious client advisors (insurance, legal, tax, etc.)Specialists in all aspects of wealth management
IntegrationCollaboration between different professionalsAll services provided by one company
Client BenefitComprehensive financial planning and investment managementAccess to specialized services and expertise
ConvenienceSingle point of contact for all financial needs and adviceStreamlined communication and coordination
Cost EfficiencyPotential separate fees for each serviceMay offer bundled services for cost savings

How the Wealth Management Works

The wealth management process consists of five distinct stages: data gathering, analysis, presentation, implementation, and ongoing communication. Let’s take a closer look at each of them:

#1. Data Gathering

First, the wealth manager meets with the client to discuss their values, goals, and top priorities. They try to establish a timeframe for the client’s short- and long-term goals. Managers are also tasked with assessing the client’s appetite for risk. Digitalization has brought Big Data benefits into this stage which is a smarter approach to data gathering.

#2. Analysis

The data collected at this stage is cleaned and analyzed. Based on the results of the analysis, a strategy is developed to meet the full range of the client’s financial needs in accordance with their attitude toward risk. Artificial Intelligence is a big step forward for the wealth management domain and helps to analyze risks better.

#3. Presentation

The client is shown all the proposals developed in the course of the analysis. At this stage, the client evaluates the proposed solutions and, if necessary, requests changes before giving final approval. It is the responsibility of the asset manager to ensure that the client fully understands all aspects of the proposal.

#4. Implementation

Effective financial management is the most important step. Wealth managers are required to take the initiative to effectively implement their clients’ proposals so that their clients can realize their goals.

#5. Ongoing Communication

The results of the implementation process are checked often, and any changes to the budget that are needed are made as soon as they become clear.

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Benefits of Wealth Management Services

The sector has seen a huge surge in invention and experimentation, and lots of financial planning trends. In addition, it must confront ongoing demographic changes that will alter the distribution of wealth. Future growth patterns will be determined by a number of factors. These three ideas stand out most clearly to us: fast-growing markets, new consumer demands, and innovative services.

Fast-Growth Markets

The US wealth management market size is huge. There are three subgroups of investors whose numbers are expected to grow significantly and steadily in the coming years: women, active first-time investors, and so-called hybrid affluent investors.

1. Women Investors

Women increasingly take control of investment decisions, with a substantial share of current and projected investment assets managed by women. This trend highlights the growing financial literacy and decision-making power among young, affluent women.

2. Active First-Time Investors

A surge in new investors entering the market, mainly driven by increased savings rates and pandemic-related impacts, creates opportunities for wealth managers to cater to this growing client segment.

3. Hybrid-Affluent Investors

The rise of hybrid investors, combining self-directed accounts with advisor support, emphasizes the importance of personalized advice and seamless integration between direct brokerage and advisor-led services. This trend reflects the evolving preferences of affluent clients seeking tailored investment solutions.

New Consumer Demands

Today, it is important for financial institutions to meet the wealth management trends and the needs of investors by providing omnichannel access, integrating banking and wealth management services, and tailoring their products and services to the needs of each individual client.

1. Omnichannel Access

Multichannel access is no longer a luxury. Clients now expect seamless digital experiences across multiple channels, with remote advice and digital platforms preferred over traditional methods. Research by Gallup shows that fully-engaged customers in retail banks bring in additional yearly revenues of US$402 to US$869. This shift necessitates wealth management firms to invest in advanced digital infrastructure to meet client expectations.

2. Integrated Banking and Wealth Management

The trend towards consolidating banking and financial services for convenience and better conditions is gaining traction, especially among younger clients as they can manage both their banking and investment needs in one place, reducing the need to deal with multiple institutions, accounts, and platforms.

3. Customized Investment Management

The increasing demand for tailored investment strategies and managed accounts underscores the importance of offering tax-efficient and personalized portfolios. Wealth managers must leverage technology and data analytics to deliver customized solutions that align with each client’s financial goals and risk tolerance.

Innovative Services

The introduction of new products and trends in wealth management causes seismic shifts in every market they enter. We believe two main types of innovative wealth management products have great potential: private market investments and digital asset investments.

1. Private Market Investments

Thanks to new technology, everyday people can now invest in private markets, which are expected to make up more than 10% of global AuM by 2025 in a base-case scenario. This is great because it lets wealth managers diversify clients’ investment portfolios, helping their money grow better over time while managing risks effectively, which is essential for growing wealth. 

2. Digital Asset Investments

Investing in digital assets, such as cryptocurrencies and tokenized securities, is gaining popularity among investors. Wealth managers must familiarize themselves with the regulations and enhance their expertise in managing digital assets to capitalize on this trend. This offers clients innovative investment opportunities aligned with their financial objectives and risk.

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The wealth management industry is evolving at lightning speed. Things are changing because of new markets, new tools, and a new generation of financial advisors. Uncertainty is also caused by money changing hands and by investors who want more control over their assets through apps and automation.

We believe that these five wealth management trends we have identified will have a significant impact on the future of investing, not only in 2024 but over the next decade as well. 

Customization with Direct Indexing

One big trend is the push for personalized investment strategies. Direct indexing is a prime example of this trend, which is all about tailoring investments to suit individual needs. 

Instead of buying into mutual funds or ETFs, direct indexing lets you pick and choose specific shares from an index, giving you more freedom and control. Plus, it reduces taxes on certain assets and boosts overall clients’ returns.

The direct indexing market was worth $400 billion in 2021 and is expected to grow to $730.5 billion by 2026. With commission-free trading platforms on the rise, the costs of direct indexing have come down, making it more accessible to everyday investors. Many brokerage firms are now offering direct indexing services to meet this growing demand.

Experts predict that by 2025, managed accounts using direct indexing could hit $1.5 trillion, showing just how popular this strategy has become. Major players like Morgan Stanley, BlackRock, Vanguard, Fidelity, and Schwab, along with the top 10 wealth management firms in the US, have all jumped on board, highlighting the industry’s focus on this innovative investment approach.

The Next Generation Will Need New Approaches

In the coming years, there will be a huge transfer of wealth from one generation to the next, which could mean a lot of money for many middle-class individuals. 

When it comes to managing this wealth, there’s a notable trend: 87% of children inheriting money don’t stick with their parent’s financial advisor. This shows a clear shift in how younger generations approach their investments.

Millennials are more open to getting advice from unbiased sources, like using algorithms or digital platforms. A large majority are interested in using robo-advisors for managing their money. This shift is significant, as the robo-advisor industry is expected to grow to about $1.2 trillion by 2024, showing that younger investors are moving towards more automated investment management options.

The millennial generation is twice as likely as the baby boomer generation to use robo-advisors, a sector that is projected to reach $1.2 trillion by 2024.

Sustainable Investing

Today people want their investments to make a positive impact on the environment and society, which is why sustainable investing is becoming increasingly important for financial advisors.

The idea behind sustainable investing is to make money while also doing good. For example, instead of investing in traditional oil and gas companies, people might choose to invest in renewable energy companies.

This trend is growing fast. Over the past few years, there has been a big increase in investments that consider environmental, social, and governance (ESG) factors. By 2025, these kinds of investments are expected to be worth over $53 trillion globally.

Nowadays, many organizations provide reports on ESG factors to help investors make informed decisions. These reports look at things like a company’s efforts to reduce carbon emissions, how they treat their workers, and their impact on the climate.

Recruitment Pressure by Retiring Advisors

As the wealth management industry continues to grow, a significant number of financial advisors are approaching retirement. Over the next decade, more than 100,000 advisors are expected to retire, representing about 40% of the total advisor workforce. 

Currently, a large portion of registered investment advisors are over 60 years old, while only a small fraction are under 40 years old. This generational shift poses challenges as older advisors may be reluctant to embrace new technologies or adopt AI-driven advice.

In response to this demographic change, wealth management organizations are facing the need to recruit approximately new consultants to meet the rising demand for advisory services. Consequently, many companies are intensifying their efforts to attract and hire a younger and more diverse workforce to bridge the gap left by retiring advisors.

Further Digital Transformation

In 2024, digital technology continues to shape how wealth management firms operate. These advancements allow firms to offer more personalized services to their clients.

Surveys show that nearly 90% of investors prefer using mobile apps, highlighting the growing importance of digital tools in the industry. Wealthtech, which includes platforms, automation services, and digital tools, is crucial for firms to connect with clients and provide customized advice. This makes it a significant trend in wealth management today.

Firms that effectively manage finances and use digital tools well experience benefits such as increased productivity, growth in assets under management (AUM), and higher revenue. These improvements come from better onboarding processes, instant reporting, improved personalization, and AI-powered investment advice. As a result, the ongoing growth of wealth management relies heavily on embracing digital transformations.


This concludes our look at the five most important factors in the wealth management industry growth to watch over the next years. As worries about inflation rise and interest in cryptocurrencies grow, investors may look for other ways to invest their money.

We expect clients will require businesses to have the infrastructure in place to work with the next generation of investors and financial advisors. This needs reorganizing priorities and rethinking how to interact with others. Financial advisors will be able to attract and retain clients by providing them with the cutting-edge digital services they crave.

Digitalization of wealth management services will definitely boost the number of clients and the accuracy of investment predictions. Contact us to discover how we might help with AI and Big Data trends incorporation for your business.

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Table of contents
What services are offered by wealth management?
Wealth management services typically include accounting, charitable giving plans, education planning, estate planning, insurance advice, investment advice, retirement planning, risk mitigation, stock options planning and advice, tax services (including tax efficiency services), and more.
What are the trends for wealth management in 2024?
Some key trends in wealth management for 2024 include customization with direct indexing, catering to the next generation of investors, sustainable investing, addressing recruitment pressure from retiring advisors, and further digital transformation in the industry.
What is the future of wealth management?
The future of wealth management involves digitalization, AI integration, personalized services, sustainable investing, adapting to generational shifts, and leveraging innovative technologies to meet client demands effectively.
What are the AI trends in wealth management?
AI trends in wealth management include using artificial intelligence for data analysis, risk assessment, portfolio management, personalized investment strategies, client communication, and enhancing overall operational efficiency in wealth management firms.
Is wealth management a growing industry?
Yes, wealth management is a growing industry driven by increasing wealth among different demographics, technological advancements, changing investor preferences, and the need for personalized financial services.
How big is the digital wealth management market?
The digital wealth management market is significant and proliferating. It includes platforms, automation services, and digital tools wealth management firms use to connect with clients, offer personalized services, provide investment advice, and manage assets.