A historic shift in wealth and new expectations could bring about lasting change to the sector.
The wealth management sector is currently on the cusp of a major transformation. The gradual arrival of new generations of investors, particularly millennials and Generation Z, is redefining expectations of financial institutions. Between changing behaviours, new investment preferences and digital transformation, these investors could profoundly alter traditional wealth management models.
One of the main factors driving this transformation is the phenomenon of generational wealth transfer, often referred to as the Great Wealth Transfer.
Nearly $83.5 trillion is expected to be passed on to Generation X, Millennials and Generation Z by 2048 (Capgemini, 2025). This massive transfer of wealth means that these new generations will gradually become the main holders of capital on a global scale.
For financial institutions, the stakes are high. Indeed, these new investors do not have the same expectations as their predecessors and could challenge traditional models of client relations in wealth management.
Unlike previous generations, younger investors appear to be less attached to traditional financial institutions.
81% of heirs from younger generations plan to leave their parents’ financial institution within one to two years of inheriting the inheriting wealth (Capgemini, 2025). This trend suggests that the relationship of trust traditionally passed down through the generations can no longer be taken for granted.
46% of millennials are considering changing their wealth manager, compared with just 13% of baby boomers (EY, 2025). Young investors are also more likely to work with several financial institutions simultaneously.
This development reflects a profound shift in the way investors select their financial partners.
Beyond the relationship with financial institutions, investment preferences are also changing. In particular, younger generations are showing a greater interest in alternative investments and emerging asset classes.
88% of wealth management professionals observe a greater interest in alternative investments among younger generations compared to baby boomers (Capgemini, 2025). This includes, in particular, private equity, digital assets and certain forms of thematic investment.
Investment motivations are also changing. 50% of investors from the younger generations say they have already made ‘passion investments’, i.e. investments driven by both personal interest and the pursuit of returns (Capgemini, 2025).
Interest in sustainable investments is also growing. 68% of high-net-worth investors say they want an ESG score when investing in sustainable products (Capgemini, 2024). This trend is part of a broader shift in the expectations of new generations of investors, who are placing increasing importance on the impact and transparency of financial products.
Finally, this transformation also extends to the user experience. New generations of investors, having grown up in a digital environment, expect investment solutions that are more intuitive, transparent and accessible. The growing success of digital banking and investment platforms also reflects this shift. In France, recent figures show that new account openings in digital banks are now roughly twice as high as those in traditional banks, highlighting the strong appeal of digital-first financial services. Younger investors are also looking for personalised and digitally advanced tools that provide real-time access to financial information and decision-support tools (Capgemini, 2025).
In this context, the ability of financial institutions to leverage data, provide advanced analytical tools and deliver a seamless digital experience could become a key differentiator.
Beyond digital platforms themselves, the growing presence of financial content on social media is also influencing how younger generations approach investing. In particular, the rise of financial influencers (“finfluencers”) has raised concerns among regulators. These actors can shape investment decisions, particularly among younger and less experienced investors, sometimes without providing regulated financial advice. European regulators have recently highlighted these risks. In particular, ESMA has published guidance encouraging responsible promotion of financial products online and warning against misleading investment content (ESMA, 2026). This issue is also addressed in the Retail Investment Strategy (RIS), which aims to strengthen the protection of retail investors and improve financial literacy.
The emergence of these new generations of investors represents both a challenge and an opportunity for wealth management firms. Whilst expectations are evolving in terms of transparency, personalisation and technological innovation, the fundamentals of investing (performance, risk management and trust) remain central to the choice of a financial partner.
For financial institutions, the challenge is no longer only to manage existing assets, but also to rethink how they engage with a new generation of investors. Combining digital tools, data-driven insights and personalised advice will be key to delivering investment solutions that are both transparent and aligned with clients’ expectations.
Portfolio analytics and investor-centric diagnostic tools can also help institutions better understand investor preferences, explain portfolio choices and strengthen trust in the advisory process. Solutions such as SAFIR illustrate how technology can support wealth managers in delivering more transparent, data-driven and personalised investment experiences.
Sources : Capgemini (2025). World Wealth Report 2025 – Capgemini (2024). World Wealth Report 2024 – ESMA (2026). Finfluencers Factsheet – EY (2025). Global Wealth Research Report. – PwC (2023). Asset and Wealth Management Revolution.