What do you think banks spend their money on in 2025?

IT spending in the financial sector is set to exceed 58 billion USD in 2025, while technologies such as generative artificial intelligence (GenAI) revolutionise workflows, data management, and client interactions. Simultaneously, the generational shift among investors will demand a new level of digitalisation.

What key trends do you see as impacting the financial sector in 2025?

Five key trends will shape this transformation: optimising client and adviser experiences, adopting modular architectures, data-driven innovation, the convergence of industries, and a stronger focus on data privacy and compliance.

How will generative AI (GenAI) impact wealth management?

An ageing population and intergenerational wealth transfer drive demand for personalised, holistic financial solutions. At the same time, a new generation of investors is emerging, seeking seamless digital experiences and transparent services. The next
generation expects innovation, speed, and distinctiveness – wealth managers must be prepared. Artificial intelligence (AI) will play an increasingly pivotal role in this development. Results show that 42% of bank clients would rely on AI for major financial decisions, such as buying a home. As technology advances, acceptance will 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: projections show that IT spending will reach $58.7 billion by 2025, representing a 4.7% increase and highlighting the remaining growth potential.

What are the key priorities for enhancing client and adviser experiences?

Speed, accuracy, and digital workflows are critical to keeping up with the growing expectations of investors. 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 fast 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 selfservice functionalities. The demand for these technologies is not unfounded: as more Next-Gen technologies enter the market and AI takes 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 result: efficiency, flexibility, and longterm competitiveness.

Increasingly seek 360-degree solutions covering all aspects of their financial lives – from investments to taxes and financial planning. Competition for these holistic services will intensify and 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.

What role will the cloud play in wealth management in 2025 (and beyond)?

Already today, three-quarters of wealth managers emphasise agility. By 2025, this will mean systems must become more flexible and adaptable to quickly respond to emerging market opportunities. 44% of wealth managers are already leveraging SaaS (Software as a Service) and cloud solutions for account management and billing, while 35% apply these technologies for onboarding, adviser/client portals, as well as financial planning.

With Wealth-as-a-Service (WaaS) – the unbundling of the wealth management technology stack into component solutions – and modular architectures, wealth managers can flexibly adapt their technology, introducing new products or services faster. 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.

Why is data management critical in wealth management?

Data is becoming the cornerstone of innovation in wealth management. Modern cloudbased data platforms are indispensable for leveraging complex technologies like Generative AI (GenAI) efficiently. 61% of wealth managers see data quality, and 56% consider data governance as critical success factors for generative AI. The volume of data is less important than its structure and management. Without high-quality information, the potential of GenAI remains unrealised, data management thus becomes the foundation for transformation and competitiveness in wealth management – for the years to come.

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

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 holistic services will intensify and 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.

What’s the next major trend?

Data privacy and compliance remain central themes in wealth management. 24% of IT investments are allocated to regulatory requirements, while 73% of wealth managers identify data privacy as a top priority.

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 synergy of technology and the human touch, complementing and enhancing interactions, rather than replacing them, to create personalised and thoughtful financial solutions.