Outlook 2025: A brave new world in the wealth management industry
Lighthouse Canton
A global investment institution - creating value through innovative investment solutions
The wealth management industry is at a turning point, where traditional paradigms are being dismantled by technology, shifting client expectations, and rapidly changing market dynamics. From generative AI transforming the role of relationship managers to private markets gaining liquidity, 2025 is poised to be a defining year.?
According to Shilpi Chowdhary , Group CEO of Lighthouse Canton, ”The changes may be subtle, but they’re already taking shape. From digitisation to the evolving ways clients consume content, we’re in the early stages—but the pace of change is expected to accelerate swiftly.”
Chowdhary’s observations resonate with a broader trend highlighted in a recent McKinsey report, which predicts that digital platforms and automation will redefine client servicing by improving efficiency while reducing costs.?
The Asia–Pacific WealthTech industry—with AuM of $600 billion to $700 billion—is on the brink of substantial expansion, according to McKinsey. Anticipated to increase by approximately 25 to 30% per year, the consulting expects the market could triple or even quadruple its present AUM by 2027.??
Source: McKinsey Research
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Trend #1: THE DIGITAL TRANSFORMATION IMPERATIVE
In wealth management, technology is no longer optional—it’s foundational.?
Generative AI is paving the way for new client experiences, from conversational portfolio tools to personalised digital interactions.?
As Chowdhary explained, “One of the things we built is something called the conversational portfolio tool - a very good use case for relationship managers. It looks very unprofessional if RMs are not aware of what’s happening, and this tool equips them to answer all client queries.”
The tool represents just the tip of the iceberg.?
Yet, adoption remains slow. “Organisations do not know how to use artificial intelligence fully yet,” Chowdhary remarked. “There’s skepticism, but those who figure it out will have a massive advantage.”
The broader challenge lies in mindset shifts within organisations. While regulatory frameworks are no longer a significant barrier, many firms cling to traditional servicing models. “People still think that wealth management is best served by people,” Chowdhary noted, “but how they are served is what needs to change.”?
Firms investing in automation, like Vanguard did with passive asset management, could see a similar disruption in wealth management.