An increasing number of traditional wealth management firms are struggling to tailor their offerings to the evolving needs of High-Net-Worth (HNW) individuals, according to a comprehensive new report by Capgemini. The findings highlight a significant disconnect between the robust growth in global wealth and the client experience delivered by established institutions, suggesting a need for fundamental strategic shifts.
The World Wealth Report 2026, released by Capgemini today, reveals that global HNW wealth experienced a substantial surge in 2025, climbing by 8.7 percent to reach an all-time record of $98.3 trillion. This marks the most robust annual increase since 2018, a growth trajectory fueled by resilient equity markets and a notable easing of inflation. These combined economic factors fostered widespread wealth creation across major global regions.
The report further indicates a significant expansion in the millionaire demographic, with the global number of individuals holding $1 million or more in investable assets growing by nearly 2 million from the previous year, bringing the total to 25.3 million. Notably, the growth was most pronounced at the upper echelons of wealth. Ultra-High-Net-Worth (UHNW) individuals, those with $30 million or more in investable assets, continued to outperform. The UHNW population expanded by 9.4 percent year-on-year, reaching approximately 250,000 individuals, while their collective wealth saw an even more impressive increase of 9.7 percent. This concentration of wealth at the top underscores a growing segment of the market with increasingly sophisticated financial requirements.
Demand for Alternative Assets Surges Amidst Market Volatility
A key trend identified in the Capgemini report is the sustained and strong demand for alternative assets. Investors are increasingly turning to these asset classes as a strategic means to achieve greater portfolio diversification and reduce correlation with public market movements. This pursuit of resilience against market volatility has become a paramount concern for many wealthy investors.
Gareth Wilson, Global Banking Industry Leader at Capgemini, elaborated on this phenomenon, stating that the primary driver behind this shift is investors’ heightened focus on diversification. "Clients are actively seeking investment products or asset classes that are distinct from and complementary to their typical public portfolio holdings," Wilson explained. He further emphasized that as wealth continues to grow and consolidate at the higher end of the market, investors are placing a greater emphasis on building robustness across their portfolios. This strategic imperative is expected to underpin sustained demand for alternative assets in the foreseeable future.
This trend is further supported by data from other financial institutions. For instance, a recent analysis by Goldman Sachs highlighted that millennials are increasingly embracing alternative investments, often referred to as the "alts generation," indicating a generational shift in investment preferences that will shape the market for years to come.
Fragmentation of Wealth Management Relationships
The Capgemini report also sheds light on a significant transformation in how HNW individuals structure their relationships with wealth and investment firms. The traditional model of relying on a single provider is rapidly becoming obsolete. Instead, a growing number of wealthy individuals are actively diversifying their assets across multiple firms.
In 2025, only 19 percent of HNWIs reported using a single wealth manager, a stark decline from 39 percent in 2019. This shift signifies a clear client preference for accessing a wider array of specialized and differentiated investment offerings that a single firm may not be able to provide.
This trend has led to an increase in industry fragmentation. The report indicates that between 12 percent and 25 percent of wealthy individuals now maintain relationships with four to six different wealth management entities. This represents a notable increase compared to previous years and underscores a growing preference for a multi-advisor approach rather than a singular point of contact.
Gareth Wilson further elaborated on the broader structural implications of this trend, pointing to significant asset flows away from traditional wealth managers. He noted that an estimated $1.5 trillion in potential assets under management are migrating towards alternative channels. These include family offices, independent advisory firms, and technology-led platforms such as robo-advisers. This redirection of assets signifies intensifying competition across the entire wealth management sector and poses a direct challenge to the established business models of many traditional firms.
The Widening Chasm: Client Experience vs. Evolving Expectations
Beneath the impressive figures of wealth growth, Capgemini identifies a more fundamental challenge facing the wealth management industry: the client experience is struggling to keep pace with rising expectations. HNW individuals are increasingly demanding more personalized, human-led, and coordinated advice that holistically addresses their entire financial lives.
Despite the record levels of HNW wealth, a concerningly low 17 percent of clients reported that the advice they receive feels seamless and tailored to their specific circumstances. Compounding this issue, a substantial 42 percent of clients stated that they are repeatedly required to restate their goals and preferences. This recurring friction points to significant inefficiencies and a lack of integrated service delivery in how wealth management services are currently being provided.
Underlying Causes: Outdated Segmentation and Operational Overload
Capgemini suggests that this significant gap is less a reflection of evolving client demand and more a consequence of how firms are structured and operate. The vast majority of wealth managers continue to rely on traditional segmentation models. The report found that 97 percent of firms primarily group clients by wealth bands, and 78 percent utilize static risk profiles. Behavioral approaches to client segmentation remain limited, with only a small minority of firms factoring in digital engagement patterns or specific investment motivations when formulating advice.
Consequently, many providers are finding it increasingly difficult to accommodate the growing complexity of client needs, even as expectations for more personalized and seamless experiences continue to escalate. A significant majority of executives, 60 percent, acknowledged that their firms lack a unified view of the client, leading to fragmented processes and duplicated efforts. Furthermore, a staggering 41 percent of a relationship manager’s (RM) time is still consumed by operational tasks rather than dedicated client engagement, hindering their ability to provide proactive and strategic advice.
Kartik Ramakrishnan, CEO of Capgemini’s Financial Services Strategic Business Unit, commented on the future of the industry: "Clients, including younger HNWIs benefiting from wealth transfers, are seeking more: greater product access, deeper personalization, and advice that truly reflects their lifestyle. Firms that can deliver this at scale, powered by AI-enabled insights and capabilities, will define the next era of wealth management."
Anneka Treon, Global Head of Private Banking at ING, offered her perspective on the disconnect. In her contribution to the report, she stated that "modern wealth clients are increasingly accustomed to working seamlessly and digitally in their day-to-day lives. When these clients face friction when interacting around wealth with their private bank, the contrast starts to feel big, prompting clients to look elsewhere. This puts the traditional private banking model at risk of stagnation while digital players continue to build credibility."
Reimagining Wealth Management for the Future
To address these challenges, wealth managers will need to fundamentally rethink their operational frameworks, moving beyond incremental adjustments towards a more structural redesign of the client experience. Gareth Wilson emphasized that "hyperpersonalization has become the new baseline in a client-facing context."
This transformative shift, according to the report, begins with widening access to a broader range of products and services. Many HNWIs are already collaborating with multiple firms to gain access to superior investment opportunities, particularly in alternative asset classes. However, Capgemini argues that product access alone is insufficient. Value-added services such as tax, estate, and retirement planning are becoming central to client retention and satisfaction.
A second crucial area of change involves redefining the role of the relationship manager (RM). The report suggests that RMs must increasingly act as orchestrators, coordinating specialists across various domains, including tax, lending, estate planning, and philanthropy. Given that RMs continue to dedicate a significant portion of their time to administrative duties, firms that successfully free up their capacity for client engagement are likely to experience stronger outcomes, including higher levels of client advocacy.
Massy Williams, Head of Wealth Management at Vanguard, highlighted the evolving nature of the industry in her contribution to the report: "Wealth management is becoming an intelligence-led industry: the real impact of AI is not just efficiency, but elevation enabling hyper-personalized, insight-driven client experiences while freeing advisors to focus on deeper, more meaningful relationships."
Luca Russignan, Global Head at Capgemini’s Research Institute, articulated the core competitive advantage in the modern landscape. "The different advantage is not operational, it’s really relational," he told the press. "In a world where products commoditize and algorithms proliferate, the one thing competitors cannot replicate is the quality of the human relationship. The advisor who knows what you need before you’ve said that, and that’s the idea of human judgment as the real luxury, and that’s where the report lands."
The implications of these findings are substantial. Traditional wealth management firms that fail to adapt to these evolving client expectations and operational demands risk losing market share to more agile and client-centric competitors. The future of wealth management appears to lie in a harmonious integration of advanced technology, deeply personalized human interaction, and a comprehensive, coordinated approach to clients’ entire financial lives. The firms that can successfully navigate this complex landscape will be best positioned to thrive in the next era of wealth creation and management.
