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Wealth Management: No Longer Just for the Wealthy

Updated: Sep 18


Wealth management is no longer exclusive to the ultra-wealthy. Indeed, 45% of the newest generation began investing in early adulthood, compared to just 15% of the “Generation X” and “Boomers” (World Economic Forum, 2025). This field has undergone a significant transformation; new digital platforms now offer unprecedented opportunities for financial empowerment, although these advances also carry inherent limitations and risks. Recognising both the opportunities and the constraints is crucial; by handling these evolutions, individuals can genuinely thrive within the financial landscape.

 

Forces Driving Transformation


A. Democratisation & Inclusion


Wealth management is reaching the global population. Robo-advisors and investing platforms, such as Betterment and Vanguard Digital, offer algorithmic asset management with low entry points (around US$500, compared to several thousands a few years prior), enabling middle-class investors to enter this previously closed world of wealth management (D’Acunto et al., 2019; Vanguard, 2023).


Alongside this, neo-brokers—such as Robinhood, Trade Republic, and Freetrade—provide commission-free trading and mobile access to stocks, bonds, ETFs, and cryptocurrencies. Trade Republic, for example, serves over 8 million users with €100 billion in assets under management (Financemagnates, 2025). These platforms reduce traditional barriers by shifting portfolio control to individual investors (Contrary Research, 2025).


Neo-banks such as Revolut, N26, and Monzo combine banking and investing within a single app, providing seamless financial management (Mastercard, 2025). Powered by open-banking regulations, such as PSD2 in Europe, which facilitate secure data sharing and foster competition (Deloitte, 2024), these innovations are transforming wealth management and enabling the newest generations to take control of their finances.

 

B. Evolving Client Demands


As accessibility increases, investor expectations grow:

ESG & Thematic Investing: The newest generations are increasingly seeking portfolios that reflect their values, whether in climate, AI, or social equity. These themes have emerged over the past decade and are becoming one of the primary factors in their investment decisions. (Windmill Digital, 2024; MDPI, 2025).


User Experience & Transparency: Another key element that the newest generation is looking for is a top-tier user experience. It includes transparent fee information to attract them, dashboards to catch their attention and an easier understanding and seamless access. In 2024, McKinsey reported that 58% of Millennials would switch brokers if the user experience is deteriorated or better on another platform (Apiture, 2024; McKinsey, 2023).


Personalisation via Data & AI: Wealth platforms are increasingly using big data and AI to customise services and enhance the customer experience. For instance, they can automatically rebalance portfolios to follow the original strategy and prevent any imbalances. Vanguard highlighted that hybrid models, which combine algorithms with human capabilities, can produce the strongest risk-adjusted results (Mohammed et al., 2021; Vanguard, 2023).

 

Limits & Risks


A. Behavioural Pitfalls & Market Risks


Greater accessibility brings new risks:

Overconfidence & impulse trading: Retail investors often underperform the market for various reasons, primarily due to excessive trading, herd behaviour, and FOMO effect.  (SSRN, 2024; Amundi Institute, 2022).




Source: Dalbar & J.P. Morgan, 2018
Source: Dalbar & J.P. Morgan, 2018

 

Algorithmic opacity: Algorithms powered by AI may embed biases or flaws that tend to favour specific products or give erroneous results, ultimately harming consumers (Huang et al., 2024; Mohammed et al., 2021).


Literacy shortfalls: A study by the Transamerica Centre revealed that only 21% of U.S. middle-class adults passed basic financial literacy exams in 2023 (Transamerica Centre, 2024).

 

B. Retirement Uncertainty & Youth Responsibility


Younger generations face growing financial burdens that they must deal with by investing:

Shrinking entitlements: UK surveys reveal 40% of people under 35 believe that pension reform won’t impact them, despite projections indicating pension spending will double as a share of GDP by 2073 (PensionsAge, 2025; FT, 2024).


Savings shortfalls: Many Millennials save only around 5.5% of their income, which is well short of the recommended 10–15% (Transamerica Centre, 2021; TIAA Institute, 2024).


Consumption pressures: Although 42% of Gen Z intend to save, rising living costs, debts, and rent compel many to prioritise immediate needs (TIAA Institute, 2024). Without structured support and financial education, even accessible tools may fall short of solving retirement challenges.

 

The Role of Regulation & Policy


To help the population save for a brighter future, effective policies are crucial.

Retirement plan mandates: One of the critical points to tackle in UK society is the retirement of current workers, which will likely not be provided or will be very low. Then, automatic enrollment in 401(k)s or IRAs encourages consistent saving from early career stages, creating responsible behaviour in the population. (McKinsey, 2024).

Robo-advisor oversight: To ensure transparency and data protection, robo-advisors must be registered and adhere to SEC and FCA regulations (Vanguard, 2023).


Financial education & nudges: Morningstar reports that regulated providers are increasingly implementing financial education, risk disclosures, and behavioural nudges to minimise impulsive trading (Morningstar, 2024).

 

 

Conclusion


The future of wealth management is evolving into a more inclusive system. The arrival of digital platforms has broken down traditional barriers to investment, but sustainable progress requires responsible innovation and discipline in user experience. For younger generations, who may not have guaranteed future retirements, early involvement in diversified savings strategies, combined with financial literacy and cost awareness, is vital. Robo-advisors, neo-brokers, and neo-banks are crucial tools, but they must be adapted to align with the values and limitations of modern investors. The path ahead involves numerous barriers that will be overcome by using technology that aids rather than replaces personal responsibility, and regulations that encourage fairness without blocking innovation.


 

References


Amundi Institute. (2022). Behavioral biases among retail and institutional investors. Amundi Institute.


Apiture. (2024). Half of Gen Z and Millennials open to switching primary financial institution to an online-only bank or credit union. Apiture. https://www.apiture.com/half-of-gen-z-and-millennials-open-to-switching-primary-financial-institution-to-a-community-bank-online-only-bank-or-credit-union-new-apiture-study-finds/

Contrary Research. (2025). Trade Republic business breakdown & founding story. Contrary Research. https://research.contrary.com/company/trade-republic


D’Acunto, F., Prabhala, N., & Rossi, A. G. (2019). The promises and pitfalls of robo-advising. Review of Financial Studies, 32(5), 1983–2020. https://doi.org/10.1093/rfs/hhz014

Deloitte. (2024). Creating value through effective risk management. https://deloitte.wsj.com/cfo/creating-value-through-effective-risk-management-01671320407


European Commission. (2022). Sustainable Finance Disclosure Regulation (SFDR). https://ec.europa.eu/info/business-economy-euro/banking-and-finance/sustainable-finance_en


Financemagnates. (2025). Trade Republic doubles to 8 million users as assets top €100 billion. Financemagnates. https://www.financemagnates.com/forex/brokers/trade-republic-doubles-to-8-million-users-as-assets-top-100-billion/


FT. (2024, July 15). UK pension spending to double by 2073. Financial Times. https://www.ft.com/content/0fe52adc-813a-4fa4-bf0a-be7651f86d49


Huang, G., Zhou, X., & Song, Q. (2024). Dynamic optimization of portfolio allocation using deep reinforcement learning. arXiv. https://doi.org/10.48550/arXiv.2412.18563


Mastercard. (2025). How Gen Z is reshaping digital banking expectations. Mastercard. https://www.mastercard.com/us/en/news-and-trends/stories/2025/gen-z-innovation-banking.html



MDPI. (2025). Thematic and ESG investing trends among younger investors. MDPI. https://www.mdpi.com/2674-1032/3/1/7


Mohammed, S., Bealer, R., & Cohen, J. (2021). Reinforcement learning for financial goal planning. arXiv. https://doi.org/10.48550/arXiv.2110.12003


Morningstar. (2024). Most workers still struggle to invest in their retirement. Morningstar. https://www.morningstar.com/retirement/why-retirees-struggle-with-transition-saving-spending


PensionsAge. (2025, March 10). Half of UK adults in the dark about state pension entitlement. PensionsAge. https://www.pensionsage.com/pa/Half-of-UK-adultsin-the-dark-about-state-pension-entitlement.php


SSRN. (2024). Overconfidence and impulse trading in retail investors. SSRN. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3515707


TIAA Institute. (2024). Young adults: Attitudes and outlook toward retirement and the economy. TIAA Institute. https://www.tiaa.org/public/institute/publication/2023/young-adults-their-attitudes-and-outlook-toward-retirement-and-the-future


Transamerica Center for Retirement Studies. (2021). Retirement savings trends among Millennials. Transamerica. https://www.transamericacenter.org/docs/default-source/retirement-survey-of-millennials



Windmill Digital. (2024). How wealthtech is democratizing investing. Windmill Digital. https://windmill.digital/how-wealthtech-is-democratizing-investing/


World Economic Forum. (2025). New research finds retail investing shift towards younger investors, reshaping market trends. https://www.weforum.org/stories/2025/07/how-younger-investors-are-leading-a-retail-investment-shift/

 

 
 
 

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