Wealth managers are prioritising meeting client expectations and deepening engagement over the next two to three years, but see the attraction and retention of staff as their biggest challenge, analysis has shown.

A report from WTW and the Thinking Ahead Institute (TAI) highlighted the key priorities and challenges for global wealth managers over the coming two to three years.

It found that 51 per cent believed meeting evolving client expectations and deepening their engagement with clients will be key priorities for wealth managers, emphasising the industry’s motivation to offer a more personalised and responsive service.

Other priorities included expanding or developing new services and capabilities (32 per cent), adapting to changing regulatory or compliance conditions (31 per cent), and increasing focus on new areas of investing (24 per cent).

Looking at the challenges facing wealth managers over the next two to three years, 40 per cent of respondents cited attracting and retaining staff.

More than a third (34 per cent) said keeping up with technology or digital transformation was a key challenge, 30 per cent pointed to scaling operations, and 29 per cent cited maintaining or growing market share, and differentiating their value proposition.

The report warned that major change was coming to wealth management firms, and managers needed to prepare for a generational and gender shift.

It found that firms’ current client bases under-represented future wealth holders, with 62 per cent having predominantly male clients and 41 per cent of clients being Baby Boomers.

WTW said that while the generational handover of assets remained a structural force shaping the industry’s evolution, its analysis showed an acceleration in the demand for advanced digital tools to model long-term family scenarios and cross-border implications.

There has also been a shift in value alignment, with a ‘significant proportion’ of next-generation clients showing preferences for sustainable, purpose-led investments and transparent reporting.

Regional dynamics were highlighted in the report, with varying rates of digital adoption and client values across the world, requiring wealth firms to build flexible, regionally sensitive strategies.

Inherited wealth continues to dominate in the UK, which was the only region where clients said they favoured growth over preservation.

“Our latest research clearly shows that wealth managers are responding to a new era of client expectations and industry complexity,” commented WTW head of GB retail and wealth investments, Ben Leach.

“Deepening engagement, attracting and retaining top talent and responding to regional differences are no longer just aspirations they are essential to sustaining growth and delivering value.

“The industry’s success will ultimately be shaped by its ability to adapt and put the client relationship at the heart of every decision.”

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