It’s no secret that the financial services landscape is continuing to evolve quite rapidly. With increased regulation, technological advancements, and shifting client expectations, financial advisers are facing a whirlwind of changes. While some might see these as hurdles, others are embracing them as opportunities to innovate and strengthen client relationships. Jenny Hunter, Senior Financial Journalist at IFA Magazine sat down with Gareth Wilson, Global Banking Industry Leader at Capgemini to talk about what the top wealth management trends for 2025 mean for financial firms and advisers.
Capgemini is a global company focused on helping businesses grow and transform, especially in financial services. They combine deep industry knowledge with cutting-edge tech skills to support their clients. Gareth Wilson, as the global banking industry lead, works to keep Capgemini up to date, helping clients with their strategies, plans, and transformations and ensuring their needs are met in a practical way.
So, what’s in store for 2025, and how can advisers stay ahead? Let’s dive in.
Engaging the next wave of clients
The generational shift in wealth is a game-changer. Over the next 20 years, an estimated $84 trillion will transfer between generations. This monumental wealth transfer brings unique challenges and opportunities to offer support for succession planning and financial education. “The double-breasted, pinstripe-suit adviser doesn’t necessarily resonate with today’s younger clients,” noted Gareth. Younger generations have a very different relationship with wealth and technology compared to their parents. They value real-time interactions, digital-first experiences, and personalised advice that aligns with their values—like ESG.
This is where the Wealth Management industry lags behind. What do peers do? How relevant is the content on my mobile banking app, the newsletter, or the investment advice to me? How does this relate to previous interactions I had with my banker or online? How tax-efficient is the investment in my personal situation?
To attract and retain these younger clients, firms need to rethink their approach. Hiring younger advisers who can relate to this demographic on a peer level is a great starting point. It’s also about leveraging technology to offer hyper-personalised, real-time advice. As Gareth highlights, “This generation’s expectations are vastly different, and firms need to be relevant to their aspirations, products, and preferred ways of interacting.”
Building trust is another critical component. Younger clients, who are often sceptical of traditional financial institutions, are more likely to engage with firms that demonstrate transparency and alignment with their values. Firms must also adapt their communication styles—social media, instant messaging, and other digital platforms are now essential tools for meaningful client engagement. This means going beyond the annual review and offering more frequent, real-time updates.
ESG as a competitive advantage
It is important that the ESG score goes beyond shades of green and provides opportunities for clients to invest in line with their own values. Additionally, financial institutions need to step up in terms of investment traceability and demonstrating actual sustainability outcomes.
Environmental, Social, and Governance (ESG) considerations are no longer optional. They’ve become a core focus for regulators, investors, and clients alike. In 2025, UK financial institutions will face stricter ESG disclosure requirements, including the implementation of new UK Sustainability Reporting Standards. As Gareth notes, “Capturing and presenting the right data is key. Clients and regulators expect transparency, and it’s up to firms to deliver.”
But with ESG comes the perennial challenge of greenwashing. How do firms prove their claims are genuine? Here’s where regulation plays a crucial role. Whether it’s the SEC’s climate-related disclosures or Europe’s Corporate Sustainability Reporting Directive, tighter rules aim to build trust and credibility. “For me,” said Gareth, “the secret sauce lies in using regulation not just as a compliance measure but as a competitive advantage.”
Moreover, ESG isn’t just about compliance—it’s about meeting client expectations. Younger generations, in particular, are prioritising sustainable investments and are more likely to choose advisers who can provide credible ESG options. To succeed, advisers need to become experts in this area, offering tailored solutions that align with each client’s values and goals. Education and certification in ESG investing can also help advisers stand out in a crowded market.
The technology and AI revolution
No discussion about the future of financial services is complete without mentioning artificial intelligence (AI). While it’s been a buzzword for years, 2025 could be the year we see AI finally scale across the industry. AI isn’t just about automating admin tasks anymore—it’s about transforming how advisers interact with clients.
“Think of AI as a co-pilot,” explained Gareth. “It can enhance efficiency, personalise client experiences, and even summarise complex documents.” For instance, Barclays actually has 30,000 technologists for whom it wants to use AI to improve efficiency[i]. Other firms, like HSBC and Morgan Stanley, are leveraging AI tools to streamline document management and provide actionable insights in real-time.
The key, however, is using AI responsibly. “Before scaling AI solutions, firms need to establish guardrails to mitigate risks like hallucinations and data security breaches,” Gareth advised. For advisers, this means balancing innovation with caution to ensure they’re using AI ethically and effectively.
AI also offers immense potential for hyper-personalisation. By analysing vast amounts of client data, AI can help advisers identify specific needs and opportunities, offering tailored advice that resonates deeply with individual clients. This level of personalisation can significantly enhance client satisfaction and loyalty.
The rise of tokenisation and blockchain
Tokenisation can also bring liquidity and efficiency to the private equity and debt markets, which are gaining more traction among Ultra-High-Net-Worth (UHNW) clients, especially the new generation.
Blockchain and tokenisation have been hot topics for years, but 2025 might just be the year they go mainstream. By converting real-world assets like property or art into digital tokens, firms can unlock new levels of liquidity and fractional ownership. “Tokenisation is all about creating innovative product types and improving market efficiency,” Gareth noted.
JP Morgan and Fidelity have already begun exploring tokenised money market funds, and central banks like Singapore’s Monetary Authority are diving headfirst into blockchain-based solutions. But, as Gareth highlights, regulatory approaches differ significantly. While Asia’s regulators lean towards innovation, Europe’s Markets in Crypto-Assets Regulation (MiCA) takes a more cautious stance. Navigating these differences will be crucial for firms looking to capitalise on blockchain’s potential.
Tokenisation also opens doors to new asset classes, enabling advisers to offer clients diversified portfolios that include fractional ownership of previously inaccessible assets. This could appeal particularly to younger investors, who may be more willing to experiment with innovative investment strategies.
Compliance as an opportunity
Regulation is often seen as a necessary evil, but Gareth offered a refreshing perspective: “Rather than viewing regulation as a hurdle, why not see it as a chance to innovate?” Take onboarding, for example. Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements can be cumbersome, but they also present an opportunity to improve client acquisition. By integrating compliance processes into a seamless, digital-first experience, firms can meet regulatory standards while delighting clients.
Looking back on past regulatory shifts like Retail Distribution Review (RDR), it’s clear that what once seemed burdensome has often led to a stronger, more robust industry . As Gareth put it, “We’ll probably look back on today’s challenges and wonder how we ever operated without these standards.”
Firms can also use compliance as a way to differentiate themselves. By going beyond the minimum requirements and demonstrating a commitment to ethical practices, advisers can build stronger, more trustworthy client relationships. This proactive approach can turn compliance from a cost centre into a competitive advantage.
Embracing change
For UK financial advisers, 2025 promises to be a year of both challenges and opportunities. From engaging a new generation of clients to harnessing the power of AI and blockchain, the industry is poised for transformation. But success will depend on mindset. As Gareth wisely advised, “The firms that thrive will be those that view change not as a threat but as an opportunity.”
Whether it’s navigating ESG requirements, scaling AI solutions, or embracing generational shifts, the road ahead is filled with possibilities. For advisers willing to adapt and innovate, the future is bright—one defined by resilience, innovation, and client-centricity.
To get access to Capgemini’s full report, detailing the top wealth management trends in 2025, visit their website.
[i] https://home.barclays/news/2024/01/how-Barclays-is-harnessing-AI/
