5 tech trends to stay on top of wealth management services inside the bank

The most successful financial services firms that include wealth management among their offerings can’t neglect the technological upgrades that are key to new opportunities and anticipate client needs. Equally important, increased use of artificial intelligence (AI) and machine learning (ML) will continue to shape this space. Firms that fail to adapt risk falling behind, highlighting the importance of staying abreast of emerging trends and technological advancements, in AI and beyond.

Let’s explore five key trends that asset and wealth management leaders should watch for.

The Great Wealth Transfer

In the next two decades, Gen Xers and Millennials will inherit an astounding $84 trillion in assets. This monumental wealth transfer is like a tidal wave, presenting a golden opportunity for banking strategists and financial advisers to attract and retain new clients.

To ride this wave, firms must understand the unique financial needs of these generations. Millennials, for instance, often grapple with lingering student loans and high housing costs at the same time, making them more cautious investors. Many also want access to investments that reflect their own lives. For instance, some show a preference for clean energy funds or diverse hiring practices at the companies underlying their investments, thus adhering to ESG (Environmental, Social and Governance) standards.

Advanced technologies like AI and ML can provide personalized estate planning, tax strategies and wealth transfer recommendations. Generative AI tools can streamline administrative tasks, while blockchain ensures secure handling of sensitive data. Firms that strategically plan and leverage these technologies will be well-positioned to benefit from this unprecedented wealth shift.

Answer CX demands with digital platforms

In 2025 and beyond, demand for seamless digital customer experiences (CX) will be higher than ever. Clients expect intuitive, self-service tools and accessible customer service channels. Digital platforms not only enhance client satisfaction but also free up financial professionals from routine tasks.

Think of digital platforms as the central nervous system of a firm, integrating disparate data sources and providing a single source of truth for client information. Gen AI can offer personalized recommendations, helping firms deliver exceptional service. Embracing these digital platforms in the areas of account servicing, prospect experience, as well as research, is crucial for retaining clients and adding value in the new year.

Alternative investments: Diversification in a volatile market

In a world where market volatility is the new norm, clients are increasingly turning to alternative investments like infrastructure bonds, private debt, private equity, real estate and the arts market. These vehicles offer potentially attractive diversification options but come with additional regulatory, compliance and legal burdens.

Firms must be prepared to integrate these asset classes into their platforms. Tools like open architecture, APIs, AI/ML and gen AI can facilitate data sharing and management. Think of these tools as the Swiss Army knife of financial technology: versatile and essential. For example, AI tools help in assessing the value of private equity investments and predicting market movements, enabling companies like Goldman Sachs (Alternative Investing – Goldman Sachs Asset Management – Goldman Sachs Asset Management) to make more informed investment choices.

Optimizing post-trade processes for speed and accuracy

While clients may see transactions as quick events, professionals know the complexity involved. Post-trade processes include reallocation, confirmation, clearing, settlement, collateral management, custody and reporting.

In 2025, firms should re-examine and optimize their post-trade capabilities. The shift to a T+1 (Trade Date Plus One) settlement cycle is revolutionizing the financial industry by significantly enhancing the speed and efficiency of trade settlements.

Markets are already thinking about the possibilities for a T+0 cycle in the future. A digital-first approach can eliminate silos and integrate systems across the front, middle and back office. Low/no-code tools and robotic process automation (RPA) can enhance speed and accessibility, while open API networks support seamless integration. Optimizing post-trade functions is like tuning a high-performance engine, ensuring everything runs smoothly and efficiently.

Intelligent automation: The future of efficiency

Intelligent automation combines AI and ML, natural language processing (NLP), low/no-code and RPA to transform processes. Unlike traditional automation, it optimizes tasks to streamline workflows and maximize efficiency. Use cases include compliance, customer service, data analysis and portfolio management. Agentic AI and autonomous agents can further accelerate this journey.

To implement intelligent automation, firms need to re-evaluate existing processes and outcomes, and brainstorm innovative solutions. Embracing intelligent automation is like upgrading from a bicycle to a high-speed train, dramatically improving speed and efficiency.

Embrace the future with technology

These five trends—the Great Wealth Transfer, digital experience, alternative investments, post-trade processes and intelligent automation—are set to revolutionize the asset and wealth management industry, including their roles within banking and when partnering with banks.

Firms that harness these technologies will not only thrive but dominate the market. The future is here, and those who fail to adapt will be left as laggards.

Ram Khizamboor is Chief Delivery Officer at LTIMindtree.