Global Wealth Reset: How Wealth Managers Are Racing to Keep Up
Investors are becoming more cautious, wealth managers are racing to digitize, and artificial intelligence is reshaping the industry. Avaloq’s latest global survey reveals how Asia, Europe, and the US are navigating a new era in wealth.
Across the globe, investors are rethinking their strategies. Nearly a third report adopting a more conservative stance, while others are building financial buffers for retirement and future expenses, according to Avaloq's latest Wealth Insights.
Crypto and digital assets are no longer fringe investments. Globally, 24 percent of investors now hold them via traditional banks or wealth managers – almost double last year’s figure.
Professionals are catching up: over half now see crypto as key for client engagement, even as concerns about trust in exchanges persist.
Asia Leading the Charge
Sustainability has moved from niche to necessity. The share of investors actively pursuing ESG opportunities jumped to 41 percent worldwide, with Asia leading the charge.
Yet a gap remains: fewer than one in three investors feel their bank clearly explains its ESG approach, highlighting a pressing need for transparency.
Trust and Communication Trump Technology
No matter the market, clear communication remains the cornerstone of trust. Globally, 77 percent of investors ranked it as a top priority – outranking fast response times and product innovation. Yet mistrust still drives churn: in the US, 60 percent of investors cite lack of trust as the main reason for switching advisers.
From Zurich to Singapore, legacy systems remain the industry’s Achilles’ heel. In Singapore, a staggering 70 percent of wealth managers say their technology is outdated, far above the global average.
Asia Pushes Ahead with AI
Hong Kong and Singapore stand out for investor confidence in AI. In Hong Kong, nearly a third of investors are comfortable with fully AI-driven advice, compared to just 19 percent globally.
In Singapore, 61 percent welcome AI-supported advice, while instant messaging has become the communication channel of choice for nearly half of investors.
US Stays Loyal – But Wary of AI
In contrast, US investors remain sceptical of technology. They overwhelmingly rely on advisers as their main source of information and place their trust in traditional financial institutions.
While 95 percent of US wealth managers see AI as integral to their future, investors remain unconvinced, marking the widest gap between professional optimism and client trust.
Looking Ahead: Personalization at Scale
Avaloq’s survey underscores a sector at a turning point. Investors demand faster responses, seamless digital experiences, and personalized advice – yet time constraints, legacy systems, and uneven AI adoption stand in the way.
The firms that harness technology to deliver trust and personalization at scale will not just survive the shift; they will define the next era of wealth management.
