For this issue of TWMTT, we caught up with Alberto Cuccu, Chief Operating Officer at Objectway, and asked him to share his thoughts on the major trends he believes will impact wealth management this year.

TWM: What are the major trends that you see impacting the financial sector this year?

Alberto Cuccu: We see five key trends shaping the ongoing transformation of the industry: the optimisation of client and adviser experiences, adoption of modular architectures, data-driven innovation, the convergence of industries, and a stronger focus on data privacy and compliance.

TWM: Where do you think wealth management firms will spend in 2025?

Alberto Cuccu: Well, we’re looking at some pretty significant investment across the industry as a whole, with IT spending in the financial sector set to exceed 58 billion USD this year. It’s no great surprise that much of this investment will be in technologies such as generative artificial intelligence (GenAI), with the goal to leverage this technology to revolutionise workflows, data management, and client interactions. At the same time, the generational shift among investors will demand a new level of digitalisation.

TWM: How do you think generative AI (GenAI) impact wealth management?

Alberto Cuccu: If we take a look at industry demographics, we have seen an ageing population and intergenerational wealth transfer that are driving demand for personalised, holistic financial solutions. At the same time, we also see a new generation of investor emerging, seeking seamless digital experiences and transparent services. The next generation expects innovation, speed, and distinctiveness – wealth managers have to be prepared. Artificial Intelligence (AI) will play an increasingly pivotal role in this development. Studies have shown that 42% of bank clients would rely on AI for major financial decisions, such as buying a home. As technology advances, acceptance will – we anticipate – continue to grow.

But it’s not just about technology. Success lies in the combination of automated processes and the deliberate inclusion of the human factor. Next-Gen technology combines AI, data integration, and open ecosystems to create personalised financial solutions while enhancing the human touch in wealth management. And it comes at the right time: as I mentioned earlier, projections show that IT spending will reach $58.7 billion by 2025, representing a 4.7% increase and highlighting the ongoing potential for growth.

TWM: What do you see as the key priorities for enhancing client and adviser experiences?

Alberto Cuccu: Speed, accuracy, and digital workflows are critical if you want to keep up with the growing expectations of investors. We continue to see wealth managers, banks, and asset managers allocate over a third of their IT budgets to three key areas: adviser and client portals, client acquisition, and onboarding. More than eight out of ten advisers expect rapid account opening processes, combined with error-free workflows and fully digital end-to-end processes. Open architecture and holistic Client Lifecycle Management (CLM) should take centre stage. These systems enable flexible workflows and accelerate routine tasks through self-service functionalities.

The demand for these technologies is not unfounded – with more Next-Gen technologies entering the market and with AI taking the global stage, investors are becoming increasingly demanding. They are driving this transition. Only through these advancements can wealth managers deliver precise forecasts, personalised recommendations and experiences, and effective risk identification. The results the industry is targeting: efficiency, flexibility, and long-term competitiveness.

TWM: Why is data management so important in wealth management?

Alberto Cuccu: Data is becoming the cornerstone of innovation in wealth management. Modern, cloud-based data platforms are key to leveraging complex technologies like Generative AI (GenAI) efficiently. 61% of wealth managers see data quality, with over 50% considering data governance as critical success factors for generative AI. The volume of data of course is less important than its structure and management. Without high-quality information, the potential of GenAI remains unrealised. So effective, efficient and secure data management are the foundation for transformation and competitiveness in wealth management.

TWM: What role do you see the cloud playing in wealth management in 2025 (and beyond)?

Alberto Cuccu: Already today, three-quarters of wealth managers emphasise agility. So that means that systems must become more flexible and adaptable to quickly respond to emerging market opportunities. Over 40% of wealth managers are already leveraging SaaS (Software as a Service) and cloud solutions for account management and billing, while over a third apply these technologies for onboarding, adviser/client portals, as well as financial planning.

Wealth managers are increasingly shifting critical business workloads to the cloud – from 57% last year to 69% in 2024. Key benefits include better scalability and enhanced access to vast datasets. This flexibility enables financial services institutions of all sizes and business models to tailor offerings, leverage competitive advantages, and accelerate growth.

TWM: What is “holistic financial wellbeing”, and why does it matter?

Alberto Cuccu: Client needs are becoming increasingly individual, demanding holistic advisory services. 32% of wealth managers identify ‘Holistic Financial Wellbeing’ as a key trend, but only 11% prioritise investments in expanding their offerings. This gap highlights a significant untapped opportunity.

Clients increasingly seek 360-degree solutions covering all aspects of their financial lives – from investments to taxes and financial planning. Competition for these services will intensify, so that only providers with a comprehensive, flexible tech stack will be able to succeed in the long-term. This ecosystem approach will be the foundation for sustainable success in acquiring new client segments.

TWM: As a last question, what do you see as the next major trend in wealth management?

Alberto Cuccu: Data privacy and compliance remain central themes in wealth management.

Data privacy is seen as a higher priority than streamlining adviser workflows, delivering personalised client experiences, and migrating business-critical workloads to the cloud. AI and Machine Learning (ML) play a key role in securely managing data and complying with regulations such as GDPR. Technology offers the potential to improve data management, streamline operational processes, and deliver personalised experiences to a diverse and growing customer base. A critical area of differentiation will be the ability to break down data silos, creating a holistic tech stack that anticipates and responds to client needs in real time.

The future lies in the ability to effectively marry technology with the human touch, complementing and enhancing interactions, rather than replacing them, to create personalised and thoughtful financial solutions.