The new era of wealth management: strategies to attract and retain Next-gen High Net Worth Individuals
11 JUN, 2025
According to the World Wealth Report 2025, part of Capgemini's World Report Series dedicated to wealth management, the sector is at a pivotal turning point. The imminent "great wealth transfer" - the largest generational wealth transfer ever recorded - will see about 83.5 trillion dollars move from baby boomers to the new generations: Gen X (44-59 years old), millennials (28-43 years old) and Gen Z (12-27 years old).
These Next-gen HNWIs (High Net Worth Individuals) have characteristics, expectations and investment behaviors profoundly different from their predecessors, requiring a structural review of the value proposition by wealth management companies.
New needs and new challenges: alternative investments, globalization and digitalization
The Next-gen HNWIs are not just preserving wealth: they are actively seeking opportunities for growth, innovation and impact. They are oriented towards high-yield investments such as private equity, digital assets (cryptocurrencies, tokens, NFTs) and passion investments – assets linked to personal interests such as art, sports, sustainability or technology. The interest in alternative investments is confirmed by 88% of the relationship managers (RM) interviewed, who note that the Next-gen are much more risk-prone than baby boomers.
Another key trend is geographical diversification. The new generations are looking for opportunities in traditional wealth centers - London, New York, Switzerland - but are increasingly interested in emerging markets such as Singapore, Hong Kong, United Arab Emirates and Saudi Arabia. These countries attract investors thanks to competitive tax policies, sophisticated financial ecosystems and political stability.
However, only 26% of wealth management companies plan to enhance their capabilities in these markets in the next 12 months, signaling a worrying gap between the demand of HNWIs and the supply of services. Another obstacle lies in the lack of effective digital tools to provide a global and integrated view of assets, with 50% of RMs believing that companies' ability to cover needs in emerging offshore locations is insufficient.
Customized services, technology and financial education culture: the new levers of loyalty
The new generation of clients demands much more than simple financial advice. They require personalized experiences, high-value ancillary services, and smooth interaction on digital channels. The study shows that Next-gen HNWIs particularly appreciate:
- Advanced digital platforms: for real-time portfolio monitoring, transaction execution, personalized updates, and remote support (video call preferred over phone or in-person contact).
- Integrated concierge services: including medical assistance, educational advice for children, cybersecurity, and lifestyle management. Banks such as HSBC, Goldman Sachs, and Morgan Stanley have already moved in this direction through strategic partnerships.
- Evolved estate planning: the management of international trusts, cross-border legal advice, tax planning, and protection of digital assets (crypto accounts, digital identities, cloud content) become fundamental.
- Financial education: 68% of baby boomers want their heirs to be trained in wealth management. Initiatives such as the "Indosuez Academy" with INSEAD or the "Women's Investment Circle" masterclasses by UBS represent effective models to engage and train new generations.
Despite the strategic interest, only 29% of wealth management companies have developed truly tailored offerings for this segment. The main difficulty lies in the deep understanding of the needs of these clients, often very different in values, culture, interests, and risk perception.
Conclusion: a mandatory transformation to remain relevant
The challenge is not only economic, but cultural and structural. Next-gen HNWIs will not only inherit wealth, but also the ability to choose new financial interlocutors. 81% of them declare they want to change wealth management companies within two years of the inheritance, due to the lack of digital services, alternative investments, or personalized solutions.
Only companies capable of reinventing their model - integrating technology, advanced services, financial education, and a person-centered approach - will be able to retain this new global elite. The future of wealth management is being played out today, and the key is to understand that every Next-gen HNWI is a completely new customer.
