Opinion |  Why digital banks are outpacing wealth managers

Our ‘In Focus’ campaign this month explores how younger generations are reshaping the advice landscape, from where they turn for financial guidance to the expectations, priorities and behaviours advisers need to understand.

Gemma Livermore, international financial services marketing director at Seismic, examines how digital-first banking has reshaped expectations around speed, transparency and ease of use, particularly among younger investors.

For many people, online banks began as a simple fix, from managing everyday spending, to avoiding unnecessary fees when travelling. What started as a convenience has become the default. Digital‑first banks now serve 27 million people in the UK alone, and as a result, have completely reshaped consumers expectations around what good financial experience looks like.

For decades, trust in wealth management was built on heritage and long-standing relationships. Face-to-face advice. That model still has value. But it was designed for a client base that no longer reflects the total picture. With an estimated $3.5 trillion set to transfer to younger generations in the coming years, firms that haven’t rethought their client experience are falling behind.

That shift is visible. McKinsey research shows 76% of Gen Z and 65% of millennials now turn to social media and online sources for financial information, which means by the time they reach a wealth manager, they’ve already formed strong views on what a good financial experience should be.

A new benchmark for experience

Gen Z and younger investors aren’t rejecting expertise. They’re redefining how it should be delivered. They expect speed, transparency and ease of access. And they’re not comparing wealth managers only to their direct competitors, but also to every seamless digital experience they’ve had recently, whether that’s a streaming service, a food delivery app, or their favourite online retailer.

Opening an account, moving money or starting to invest can now be done in minutes through platforms like Revolut or Monzo. Real-time notifications, intuitive interfaces and always-on access are what’s expected.

Online banks are expected to reach around 850 million globally,  underlining how quickly this digital-first banking approach has scaled. This is the reference point, whether wealth managers have actively chosen it or not.

The divide this creates is real and growing. Processes that once felt thorough now feel slow. Onboarding that once signalled care now signals friction. And younger clients rarely complain about that experience. Instead, they just leave. with 71% of Gen Z customers saying they’d abandon an interaction if the process was too difficult.

Closing that distance doesn’t mean becoming a digital bank. Wealth managers’ value still lies in advice, strategy and human judgement through uncertain markets. But delivering that value through an outdated experience is increasingly hard to justify.

This shift is also changing the role of the adviser, with clients better informed and more self-directed than any previous generation. They’ve checked out the market commentary, looked at the app, formed a view. So what they need from an adviser isn’t access to information. They have that. They need somebody who interprets it and helps them act on it confidently. That’s a different kind of conversation, and it requires advisers to show up differently too.

If advisers are relying on fragmented systems or manual processes, it’s difficult to deliver the kind of responsive, personalised experience today’s clients expect.

What good looks like now

The firms adapting well share a few common traits. They’ve simplified onboarding without compromising compliance. Unnecessary friction isn’t thoroughness. It’s a retention risk.

They’ve built joined-up experiences, so clients can move between digital channels and adviser interactions without losing context or repeating information.

They’re also rethinking how they communicate. Instead of static reports or infrequent updates, leading firms are deploying more timely and personalised content. Imagine receiving a short, tailored note within 24 hours of a major market event, providing context for how it impacts your specific portfolio. No fancy jargon. No delay. That’s the standard.  

Importantly, they’re not treating digital as a luxury, but as the foundation of the client experience which supports both self-service and adviser-led interactions in a consistent, cohesive way.

The new standard

Underneath all of this is a shift in how you build trust. Heritage and expertise still matter. But they’re insufficient on their own. For the next generation of clients, trust is moving from something earned through reputation to something demonstrated through experience and outcomes.

The massive generational wealth transfer underway is not just a financial event. It’s a reset in expectations. Firms that recognise that, and evolve how they deliver value, will remain relevant. Those that don’t risk being overlooked entirely by a generation that is already financially engaged and already forming long-term preferences.

The firms that act now and continue to evolve won’t just retain the next generation of clients. They’ll define what wealth management looks like for the next decade.

By Gemma Livermore, International Financial Services Marketing Director at Seismic