This year is going to be an ‘inflection point’ for the wealth management industry, with four key themes set to reshape the sector in 2026, according to True Potential CEO, Gerry Mallon.

In a New Years letter outlining the wealth manager’s forecast for 2026, Mallon described last year as one defined by noise and novelty, in which boundaries between traditional financial advice and ‘finfluencers’ continued to blur.

“If there has been one constant throughout the past decade it is this: the importance of trust,” Mallon said.

“In wealth management, it is clear to me that your role, the role of advisers, has never been more critical to enabling that trust in our sector.”

Looking to 2026, Mallon noted that the wealth management industry was increasingly being powered by artificial intelligence (AI).

He urged advisers to see AI as a tool and not a threat, as it was not here to replace advisers but to empower them, and described the technology as the opportunity of the century.

“AI is coming of age in its use for financial advice, a position we strongly advocate,” Mallon continued.

“I was encouraged to learn that 43 per cent of advice firms already use AI – primarily for personalisation, data analysis and compliance.

“Yet not all consumers are on this same journey, and don’t trust that AI can complement and help improve the vital human advice that they receive.”

True Potential forecast that 2026 will see platforms increasingly using AI to develop ‘digital twins’ of clients’ financial lives, alongside the growth of concierge bots and improved back-office processes.

Another key theme identified for this year was cryptoassets, although Mallon said he was personally sceptical about them.

“The behaviour of specific assets in this class is highly volatile, lack transparency and have no intrinsic value when not fiat backed,” he said.

“One could argue that certain cryptoassets are nothing more than a Ponzi scheme which will unravel.”

However, Mallon conceded that cryptoassets had moved from a fringe trend into mainstream conversation over the past decade, and he was positive on the movements towards tokenisation and other digital assets like stablecoins.

The UK government is in the process of regulating cryptoassets, shifting them from an unregulated market to a regulatory framework, reshaping expectations for platforms and advisers.

“Digital assets, more broadly, will undoubtedly reshape portfolios, but as with traditional assets consumer trust must always be the foundation,” Mallon said.

“Across the industry, I will be advocating firmly for high standards based on a ‘same risk, same regulation’ approach.”

The other key themes outlined in the letter were empowered investors and private markets, with Mallon highlighting the government’s investment awareness campaign, which is set to be launched by the financial services sector in April, and private markets becoming more accessible as primary drivers for these trends.

“I truly believe that 2026 will be the year that the power of advice will get increased recognition,” Mallon concluded.

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