Investor expectations have shifted dramatically in recent years, as investors demand more control over their portfolios while increasingly leaning into digital-first engagement. Top wealth management firms are adapting to these realities by revolutionizing their service models with an eye toward being indispensable partners for the investors of tomorrow.

At a macro level, the world is experiencing a huge shift from an institution-centered market to an individual investor-driven market. Global assets under management (AUM) associated with retail investment channels are expected to reach 61% of the forecasted $175 trillion of AUM by 2030, according to a World Economic Forum (WEF) report.¹ And adoption of online trading platforms continues to rise. The WEF report estimated a 20% compound annual growth rate (CAGR) in the number of stock trading app users between 2016 and 2025.

Access to digital tools suggests that individuals are taking greater ownership of their financial decisions. They can now access the markets in ways that historically they could not. However, such tools may not meet their need for unbiased financial advice to build their confidence in making decisions. According to a recent study by The Guardian², only 30% of workers rated their financial health as “excellent” or “very good” compared to 38% in 2016. This suggests that the expansion of financial tools and trading access has not translated into greater investor confidence.

Young Investors: Seeking Control Yet Craving Advice

Many young people are investing early and broadly, and most Gen Z Americans start to learn about investments before they enter the workforce. Notably their interests extend beyond mutual funds, stocks and bonds. Alternatives – private equity, hedge funds, etc. – are of great interest, too. This is partly because public companies – the number of which has already fallen in recent decades – continue to merge even as private companies remain private for longer. Thus, younger investors, who often are attracted to more entrepreneurial small-cap companies, find themselves turning to the private markets.

Even as these young investors venture into the investment world, they often face competing priorities and short-term goals. Many are struggling to pay off student loan debt or hoping to buy a first home. These pressing financial imperatives intensify their unease with putting money at risk, which erodes their confidence in making investment decisions. They crave advice but may not feel prepared to engage with a financial professional.

Where then do they get advice? Often it’s from social media. More than 40% of  U.S. adults age 18 to 29 get financial advice from social platforms, according to a recent Gallup survey.³ The information provided can vary greatly in quality and accuracy, and a growing universe of “fin-fluencers” and sponsored posters increases the possibility of financial incentives being tied to certain recommended products.

The wealth management industry has some catching up to do. Firms should put credible, branded investment and financial information out in the marketplace so there is more high-quality financial education to offset the increasing flow of questionable online advice targeted to younger investors.

It’s important to create a comprehensive internal strategy for engaging the next generation of clients, building on the relationships advisors have with their parents. Failing to do so systematically may risk losing these clients – and future heirs – forever.

Women Investors: Gaining Control Yet Often Overlooked

In the coming years, women will largely determine how well financial advisors maintain and grow their businesses. In part this is because women in the U.S. live an average of five years longer than men.⁴ They are therefore often heirs to their deceased partners’ estates. Unfortunately, by some estimates about two-thirds  of women leave their existing advisory relationships shortly after assuming control of the couple’s investments.

How can wealth advisors who work with couples avoid this scenario? For many women, an advisor’s willingness to listen is the most important factor in their satisfaction with the service they receive. Men, by contrast, place greater emphasis on financial products and advice when determining their satisfaction. So, one critical approach is to include women in every client meeting and, when possible, to solicit questions from and speak directly with them, even if their partners are ultimately responsible for making decisions.

Woman clients value a professional who will listen to them and strive to understand what’s important to them. They welcome education and advice as they build confidence in making their own investment decisions, perhaps for the first time.

AI’s Promise: Delivering Service and Advice More Efficiently

AI-enhanced technology has great potential for more personalized client engagement, user-centered financial education and back-office optimization. Firms are confident that AI can contribute to advisor productivity in ways that drive growth, as well as client satisfaction and retention.

The vision is for advisors to work with their top-tier clients largely as they always have, using AI where it can add value. Advisors can then seek to transition their other clients into the top tier by devoting the time “gained” through reduced administrative effort to strengthening these relationships.

Achieving positive results with AI requires quality data as well as a new skillset for advisors. Firms have done a significant amount of work to transform and normalize data so wealth managers can put it to work. The challenge will be for advisors to sharpen their prompting skills to coax generative AI tools into providing insights into clients and the business.

“The best advice we can give our professionals is: ‘Think about your prompts. Master that skill,’” says Nancy Gordon, Head of Advisor Growth and Product Lead for the Wealth Services Platform at BNY Pershing.

Perhaps the most important impact of AI on the industry will be to help firms scale up investment advice affordably – for consumers and for advisory firms. This advice can be more personalized, and some firms may choose to push AI-enabled technology out to end consumers through chatbots and AI-powered digital advisors. These options must be implemented with care to safeguard data privacy and prevent bias.

Profound changes across the investor landscape underscore the importance for wealth managers to remain flexible, adapt creatively and remember that people remain at the heart of our business despite technology’s expanding role in how we deliver value to our clients.

This article is based on a panel discussion from INSITE 2025, entitled "The Client of 2030: Understanding the Evolving Investor Mindset"