AI, personalization and the $1.5T missed opportunity in wealth (investmentnews.com)

Wealth management is at an inflection point. Clients are demanding more, and the firms that cannot keep up are leaving growth on the table. According to Capgemini research, $1.5 trillion in new assets under advice accrued to wealthtech and new-age competitors between 2022 and 2025, opportunity that traditional wealth management firms simply failed to capture. PV Narayan, head of banking for the Americas at Capgemini, spoke with InvestmentNews to discuss what is driving that gap, where AI is creating the greatest value in client relationships, and why the most important technology decisions in wealth management need to start at the very top. The client relationship has fundamentally changed Capgemini's research finds that 88% of high-net-worth individuals now work with multiple firms specifically to access private equity, hedge funds, and other alternative investments. Exclusive single-firm relationships, once the hallmark of the wealth management industry, have fallen from 39% to just 19% over the past six years. "Right now, clients are chasing access to products that sit outside what many traditional firms currently provide," Narayan said. "Traditional firms built their model around managing assets well, but today's client expects a much broader set of capabilities, from diverse investment options to modern digital...