AI, personalization and the $1.5T missed opportunity in wealth
The client relationship has fundamentally changed
Capgemini’s research finds that 88% of high-net-worth individuals now work with multiple firms specifically to access private equity, hedge funds, and other alternative investments. Exclusive single-firm relationships, once the hallmark of the wealth management industry, have fallen from 39% to just 19% over the past six years.
“Right now, clients are chasing access to products that sit outside what many traditional firms currently provide,” Narayan said. “Traditional firms built their model around managing assets well, but today’s client expects a much broader set of capabilities, from diverse investment options to modern digital experiences.”
The consequence is that even as wealth creation accelerates and the advisory market expands, firms that fail to evolve their value proposition will continue to cede that growth to more agile competitors.
Closely tied to that is a personalization gap that many firms have not yet confronted honestly. Capgemini’s data shows 42% of high-net-worth individuals say they had to restate their financial goals to the same firm more than once; a signal that the seamless, anticipatory experience clients expect is not yet being delivered.
“Advisors often equate personalization with more frequent check-ins or a strong personal relationship, but clients are looking for something more specific: an advisor who already understands their preferences and anticipates their needs,” Narayan said. “This is not about technology for technology’s sake. It is about execution.”
