The wealth management industry in Europe continues to adapt and change, driven by intensifying client demands, evolving regulations and rapid technological advancements. These changes are reflected in the 12th Technology and Operations Trends Report 2024. While some European firms stand among the leaders in digital transformation, with the region scoring high in technological adoption overall, it is however notable that European wealth managers (4.8) and private banks (4.3) range below the industry average when it comes to their levels of digitisation, although the industry average (5.3/7) is the highest ever reported.

Despite this lower average, wealth managers in Europe have demonstrated a clear willingness by banks to invest in upgrading their tech stack;  Alpha has observed numerous industry leaders replacing their core banking systems to create the underlying basis for a flexible technology setup to improve efficiency and the client experience. At the same time, they are also focusing on ensuring regulatory compliance and improving and digitising the onboarding process, while also ensuring that the client lifecycle management experience remains central.

The wealth industry recognises the growing need for digital interaction by increasingly tech-savvy clients, particularly Millennials and Gen Z who prefer mobile-first solutions. They expect seamless digital engagement in wealth management similar to their experiences with other sectors. 

However, the pace of digitisation has slowed down for wealth managers compared with previous years (from 5.3 to 4.7 out of 7) while private banks often benefit on a secondary basis from digital innovations brought to maturity by retail banks. Investment in client-facing technology is now the priority, with 54 per cent of firms focusing on tools such as client portals, mobile apps, and personalised dashboards for clients.

One notable trend is AI and data-driven personalisation, especially as European wealth managers strive to deepen client relationships. AI is increasingly being used to analyse client behaviour and preferences, enabling firms to offer tailored solutions with greater precision.

And while most wealth managers have just started to examine the potential of AI, we increasingly observe AI use cases being launched and brought in to support relationship managers and clients (ranging from internal “policy screening and summarising” to “investment proposal creation”).

Despite advances made so far, there is still room for European wealth managers to make improvements, particularly in balancing customised client offerings with the need for standardised, scalable solutions that improve efficiency. This trade-off underscores a broader industry dilemma as firms seek to deliver high-quality, personalised service while keeping up with the fast pace of technological change.

Nevertheless, as Europe continues to strengthen its approach with robust digital and regulatory standards, advanced AI and data technologies, along with a desire for sustainability, the region is set to remain a leader in responsible, forward-thinking wealth management.

The author
Sven Kuonen is a partner at Alpha FMC, leading Alpha’s Zurich office as head of wealth management. With over 15 years of experience in financial services consulting, Sven specialises in advising clients across Switzerland, Europe, and the Middle East on strategy, operating model design and execution. He supports organisations along the full value chain, from strategy definition to implementation.

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