Redefining the Future of Wealth Management

NextGen HNWIs: Redefining the Future of Wealth Management

A historic generational shift is on the horizon, accompanied by an unprecedented transfer of wealth amounting to over 80 trillion dollars. But the heirs of tomorrow – the High-Net-Worth Individuals of Generations X, Y, and Z – think differently: They are looking for more than just returns. They expect meaning, service, and smart technologies.

The financial world stands at a turning point. According to the «UBS Global Wealth Report 2024», more than 80 trillion dollars will be passed on over the next 15 years to a new generation of High-Net-Worth Individuals HNWIs) – heirs from Generation X, Millennials, and Gen Z, each of whom will hold at least one million dollars in investable assets. Former UBS investment banker Ken Costa even speaks in his new book of a wealth transfer of 100 trillion dollars.

However, with the capital comes a shift in mindset among the moneyed elite. For banks and wealth managers, this means that traditional approaches are no longer sufficient. Entirely new strategies, new services – and above all, new ways of thinking – are required, as highlighted in the «World Wealth Report 2025» published Wednesday by consulting firm Capgemini.

How Asian HNWIs Differ Even More

Young, wealthy investors are focusing on growth over security. As of January 2025, HNWIs held around 15 percent of their portfolios in alternative investments such as private equity or cryptocurrencies. Particularly among the younger generations – Millennials and Gen Z – risk appetite is especially high: 61 percent are willing to actively invest in high-growth niche markets.

Furthermore, the report indicates that next-generation Asian HNWIs place particular importance on digital efficiency, tailored services, and access to exclusive investments, more so than their peers worldwide.

Key Statistics for Asia

According to the report, the Asia Pacific (APAC) region saw a 4.8 percent increase in HNWI wealth (behind North America) and a 2.7 percent rise in population totals.

• In China, HNWI wealth grew by 2.4 percent, while the population declined by 1.0 percent.
• In 2024, South Korea stood out as an APAC region outlier, experiencing a 3.8 percent wealth decline alongside a 6.2% population decrease.
• Japan’s HNWI wealth and population grew by 8.2 percent and 5.6 percent in 2024.

From Financial Advisor to Lifestyle Partner

Expectations for wealth managers are changing drastically. Digital platforms with personalized dashboards, automated processes, and seamless omnichannel experiences are considered standard.

In addition, concierge services such as luxury travel, medical care, or cybersecurity are becoming true differentiators in the competition for loyal client relationships.

Many Wealth Managers Are Unprepared

But many wealth managers are unprepared. According to the study, one in three advisors is dissatisfied with their company’s digital tools, with direct consequences for productivity and client retention. 62 percent of Next-Gen HNWIs say they would follow their advisor to another firm.

Those who fail to support their top advisors with modern technology and flexibility risk a double loss: the expert and the client.

Focus on Locations – Personnel at the Limit

Young investors increasingly look toward dynamic offshore centers such as Singapore, Hong Kong, or the United Arab Emirates (UAE). These markets offer diversification, access to new assets, and an innovation-friendly environment.

At the same time, the industry is facing a severe talent shortage: One-quarter of advisors plan to change firms within the next year, and nearly half intend to retire by 2040.

The Window Is Open – But Not for Long

The upcoming wealth transfer is a historic opportunity, but only for those willing to embrace change, the Capgemini report notes. Digital excellence, bold investment options, and personalized service are becoming the new benchmarks.

Those who fail to consistently invest in technology, talent, and customized solutions will fall behind in the race for the next generation of HNWIs.

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