Advisers cite technology as critical for growth
Praemium’s latest research - ‘The Future of Private Wealth’ - revealed that 73% of advisers serving HNW clients identified technology as a critical driver of business growth, compared to 62% of non-HNW-focused advisers. The adoption of tools such as artificial intelligence (AI), predictive analytics, and integrated platforms enables advisers to optimise client portfolios, deliver hyper-personalised insights, and streamline operations. These advancements free up time for strategic engagement, positioning advisers as trusted partners.
HNW clients place a premium on access to exclusive investment opportunities, including alternative assets such as private equity, real estate, and structured products. These investments, which account for 14% of allocations in larger HNW portfolios, offer diversification and unparalleled returns, addressing the dual goals of growth and wealth preservation. However, managing these sophisticated portfolios can be challenging without the right infrastructure.
Platforms that offer enhanced reporting, comprehensive access to a range asset types, and real-time analytics have become indispensable. Such tools provide clients with a comprehensive view of their wealth while equipping advisers to deliver more transparent and informed recommendations. For instance, 69% of HNW-focused advisers view alternatives as essential to meeting client demands, further underscoring the need for technology to navigate this complexity.
Balancing innovation with human connection
While technology drives efficiency, the human element remains central to HNW wealth management. Clients seek relationships that go beyond financial transactions, valuing advisers who understand their unique, often values-based aspirations, which increasingly involve legacy planning, philanthropy, and impact investing. This expectation for personalisation has reshaped the adviser’s role, making it imperative to blend high-tech solutions with high-touch service.
Digital tools play a vital role in this balancing act. Customisable dashboards, intuitive client portals, and interactive reporting not only enhance transparency, but also foster deeper client engagement. For example, platforms that integrate with CRM capabilities or leverage machine learning insights allow advisers to anticipate client needs, providing proactive solutions that build trust and loyalty. This approach resonates with the 95% of HNW advisers who believe a high-touch approach is crucial to servicing their clients effectively.
Investing in technology also addresses common challenges, such as time constraints and portfolio complexity. Over half of HNW-focused advisers are struggling to dedicate sufficient one-on-one time with clients, and 43% identify meeting investment performance expectations as a key obstacle. By automating routine tasks and offering actionable insights, technology empowers advisers to focus on delivering personalised, strategic advice.
The rise of alternative investments has further highlighted the importance of integrating technology into wealth management. Advisers serving clients with highly diversified portfolios report higher engagement levels, with 56% of investors in alternatives maintaining ongoing relationships with their advisers, compared to only 36% of non-alternative investors. This underscores the opportunity for advisers to deepen client relationships by facilitating access to unique investment opportunities, supported by robust technological frameworks.
The Road Ahead
Advisers who can balance digital efficiency and access to innovative investment opportunities with a bespoke client experience will lead the way in the future of wealth management. By leveraging tools like AI-driven insights, seamless portfolio integration, and intuitive client portals, advisers can redefine what it means to provide high-value service. With 42% of HNW-focused advisers identifying AI as a top trend for client engagement, the direction is clear: technology is no longer an optional enhancement but a fundamental aspect of advisory excellence.
In this evolving landscape, the firms that succeed will be those that embrace a dual focus on technological sophistication and meaningful human connection. By doing so, they will unlock new opportunities for growth, meet the increasing demands of sophisticated clients, and set a new standard for wealth management in the years to come.
Download a copy of the full research report at https://www.praemium.com/future-of-private-wealth