Wealth management in the United States is poised for a period of significant evolution.
By 2025, technological advancements, shifting client expectations, and new investment opportunities are driving fundamental changes in how advisors engage clients, deliver services, and manage assets. According to McKinsey, U.S. assets under management (AUM) are expected to increase by $500 billion to $1.3 trillion by 2025, fueled by private market growth, digital adoption, and demographic shifts.
Digital Experiences Are Mandatory, but Human Advisors Remain Essential
Clients today expect digital-first experiences that match the convenience they enjoy in other areas of life. From mobile banking apps to AI-driven portfolio dashboards, digital channels have become a baseline expectation. A 2024 FINRA study highlighted that over 60% of Americans consulted financial professionals before making decisions, while only 5% relied on AI alone. This illustrates that while technology can enhance efficiency, human engagement remains critical for trust, nuanced advice, and relationship building.
Wealth management firms are now integrating “high-tech, high-touch” models, combining AI-driven analytics and GenAI tools with skilled advisors. The result is more personalized advice, faster decision-making, and enhanced customer satisfaction. Firms like JPMorgan and Morgan Stanley are deploying these hybrid strategies to maintain client engagement and improve cross-selling opportunities.
The Shift Away from Traditional Robo-Advisors
Robo-advisors, which emerged after the 2008 financial crisis, have faced growing scrutiny. Standalone firms such as Betterment and Wealthfront initially attracted clients with lower-cost, automated portfolio management. However, their profitability has been challenged by low average balances and slow conversion to full-service advisory clients. In response, many robo-advisors are expanding into hybrid models that offer human advisors, banking services, crypto portfolios, and alternative investments, aiming to become comprehensive financial platforms according to Capco.
Meanwhile, larger institutions are reevaluating their in-house robo offerings, integrating automation into existing advisory channels rather than maintaining separate platforms. This shift emphasizes efficiency, reduces operational costs, and aligns digital tools with trusted human advisors.
Unlocking the 360-Degree Client View with GenAI
A critical differentiator in wealth management is the ability to build a holistic, 360-degree understanding of clients’ financial and personal goals. Traditionally, fragmented systems and siloed data have limited advisors’ ability to synthesize insights effectively. With the advent of Generative AI (GenAI), wealth managers can now aggregate portfolio data, transaction history, risk profiles, and client preferences to generate actionable insights quickly. This allows advisors to focus on meaningful engagement rather than administrative tasks, improving client outcomes and enhancing long-term relationships.
For example, GenAI can flag investment opportunities aligned with client risk tolerance, forecast the impact of market shifts on client portfolios, or provide tailored strategies for estate planning—all in real time.
Protecting and nurturing your investments today can lead to sustainable financial growth and long-term wealth.
Alternative Investments Are Becoming Mainstream
Investors are increasingly seeking opportunities outside traditional stocks and bonds. This trend is driven by the desire for higher returns and reduced correlation with public markets. Historically reserved for ultra-high-net-worth individuals, private market investments such as real estate shares, private credit, infrastructure, art funds, and crypto are now accessible to mass-affluent investors through fintech platforms and new fund structures. These innovations lower entry barriers, democratize access, and help diversify portfolios.
Platforms are also providing secondary market opportunities, enabling investors to sell or buy stakes in private investments with greater flexibility. This development addresses a traditional challenge of illiquidity in alternative assets and creates new pathways for wealth growth and risk management.
Talent and the Advisor Economy
Recruiting and retaining top financial advisors remains a central challenge. Advisor acquisition costs can reach 2–4 times annual revenues, driven by competition and the growth of independent Registered Investment Advisors (RIAs) supported by private equity. Large banks and wirehouses are using cross-selling strategies—linking banking, retirement, brokerage, and wealth management services—to attract and retain advisors while increasing AUM. For instance, Morgan Stanley’s acquisition of E*TRADE and stock plan businesses exemplifies this approach, leveraging technology and client relationships to boost advisory revenues.
At the same time, firms are segmenting clients by AUM and tailoring service levels. Lower-AUM clients may be served through digital channels, while high-net-worth clients benefit from high-touch advisory services supported by analytics, AI tools, and contextual insights.
People Also Ask
What role will AI play in wealth management?
AI, particularly GenAI, allows firms to synthesize client data, forecast portfolio outcomes, and provide personalized recommendations, freeing advisors to focus on engagement and relationship-building.
Are robo-advisors still relevant?
Standalone robo-advisors are shifting toward hybrid platforms offering human advisors, banking services, and alternative investments, while larger institutions are integrating robo-tech into existing channels for efficiency.
How can investors access alternative investments?
Fintech platforms and new fund structures have lowered entry thresholds, enabling mass-affluent investors to access real estate, private credit, art funds, and crypto, while secondary markets help reduce illiquidity risks.
How do firms attract and retain top advisors?
Cross-selling opportunities, integration with banking and brokerage services, and competitive compensation structures are key. Banks like JPMorgan, Morgan Stanley, and Citi are leveraging these strategies to strengthen their advisor networks.
Conclusion
The U.S. wealth management industry in 2025 is defined by technological integration, shifting client expectations, and democratization of investment opportunities. Firms that successfully balance digital tools with human expertise, leverage GenAI for a 360-degree client view, and provide access to alternative assets will gain a competitive edge. As advisors evolve into holistic financial partners, and clients increasingly seek personalization, the next decade promises a wealth management landscape that is smarter, more inclusive, and more client-centric than ever before.
