

As 2025 unfolds, the wealth management sector finds itself at a pivotal moment, shaped by global economic shifts, technological advancements, and evolving investor expectations. A combination of geopolitical uncertainty, demographic changes, and digital transformation is forcing firms to reassess their strategies to remain competitive in an increasingly complex environment.
Kidbrooke, which offers a unified analytics platform for investment and wealth, recently explored four of the key trends shaping the industry in 2025.
One of the key factors influencing wealth management strategies this year is the changing global economic and political landscape.
The outcome of the U.S. elections could trigger renewed trade tensions, protectionist policies, and a reassessment of global alliances. With U.S.-China relations remaining strained, Chinese firms are likely to accelerate their expansion into emerging markets, especially across the Global South, to mitigate risks posed by trade restrictions.
At the same time, demographic shifts are also affecting global investment flows. While ageing populations across Western nations shape policy and economic conservatism, regions such as the Middle East and parts of Asia are witnessing a surge in younger populations, albeit with rising unemployment and economic instability. Wealth managers must adapt their strategies to account for these evolving demographic and political realities, balancing immediate risks with long-term opportunities.
Artificial intelligence is also playing a transformative role in wealth management, with firms increasingly leveraging AI to enhance personalisation, improve operational efficiency, and refine risk management processes.
Large language models (LLMs) and generative AI are enabling advisory platforms to offer real-time, highly personalised client interactions, redefining the client-advisor relationship. For example, Morgan Stanley’s GenAI-powered knowledge management system helps its advisors rapidly access relevant insights, boosting the quality of their recommendations.
Kidbrooke’s “Kate” platform takes AI integration a step further by combining LLM technology with structured financial models, ensuring outputs align with client goals and risk profiles. This structured memory capability addresses common issues like context drift, helping advisors deliver more reliable and consistent advice.
Despite these advancements, AI adoption across financial services remains relatively low. Goldman Sachs estimates that only 5% of U.S. firms currently utilise AI, though this is expected to double by the end of 2025.
The technology still faces significant challenges, including high energy consumption, data privacy risks, and concerns about algorithmic bias. Emerging solutions like DeepSeek AI, developed in China, offer more energy-efficient alternatives, demonstrating that innovation continues to overcome such barriers. Beyond wealth management, AI’s influence is also expanding into insurance and retirement planning, where it automates administrative processes, reduces operational costs, and enhances predictive modelling for risk assessments. Nevertheless, regulatory scrutiny around AI is expected to intensify throughout 2025, with global authorities focusing on AI safety, data governance, and the prevention of misinformation.
Alongside technological innovation, the wealth management sector is undergoing a generational shift as younger investors, particularly Gen Z, begin to wield greater influence. Representing nearly a third of the global population and 40% of global consumers, Gen Z brings a unique set of expectations to wealth management.
This digital-first generation values sustainability and authentic engagement, making environmental, social, and governance (ESG) factors central to their investment decisions. However, Gen Z investors are also quick to detect insincere attempts at marketing sustainability, leaving firms with no choice but to adopt genuinely values-driven strategies. With much of their financial education stemming from social media platforms and influencers, wealth managers must adapt to meet Gen Z where they are — leveraging TikTok, Instagram, and gamified tools to deliver credible, engaging financial content that promotes informed decision-making and early investment habits.
Transparency is no longer optional in this evolving wealth management landscape — it has become a cornerstone of trust between firms and their clients. Both regulators and investors are demanding clearer, more accessible information about how funds are managed, how fees are structured, and how ESG claims are substantiated.
This trend is reinforced by the growing focus on greenwashing, with 85% of investors in a 2024 EY survey citing it as a more serious concern today than five years ago. Regulatory bodies, particularly in Europe, are tightening rules around ESG disclosures to enhance accountability and ensure asset managers provide transparent, reliable data to investors. The 2024 Swedish Fund Information Review (FIR) underscored these pressures, highlighting gaps in the availability and clarity of fund information, and pushing the industry towards greater openness.
Kidbrooke believes transparency is more than just regulatory compliance — it is a fundamental pillar of investor empowerment. By combining advanced analytics with clear communication and personalisation, wealth managers can not only build stronger client relationships but also mitigate risks and drive long-term confidence. In a market where trust is fast becoming the most valuable currency, firms that prioritise transparency will emerge as leaders in the next era of wealth management.
As 2025 progresses, wealth and investment management firms must navigate an increasingly complex landscape where geopolitical shifts, AI adoption, generational change, and regulatory pressures converge. The firms that successfully integrate technology, embrace authentic engagement with younger investors, and champion transparency will be best positioned to thrive in the years ahead.
Read the story here.
Keep up with all the latest FinTech news here
Copyright © 2025 FinTech Global