Wealth managers must accelerate their transformation or risk falling behind in an increasingly competitive industry. EY’s latest annual resolutions for the sector highlight the urgent need for firms to embrace technology and sharpen their brand proposition amid mounting margin pressure, intense competition, and growing regulatory complexity.
While EY’s ten resolutions build on 2024 priorities, the 2025 outlook shifts focus to reflect the market’s rapid evolution. Sustainability, in EY›s view, has become a lesser priority. The Big Four consultancy emphasises that wealth and asset managers must adopt a sharper, more strategic approach anchored in technological transformation to stay ahead.
Strategic priorities for 2025
“Firms can ‘stay fit’ by leveraging brand value and culture, personalising products, harnessing data, and navigating regulation strategically,” EY’s global wealth management team stated in its 2025 outlook. Increasing cost pressures, fierce competition, and rapid technological advancements will force firms to evolve.
The importance of sustainability for wealth managers has diminished because of “changing political priorities”, EY said. This resolution now ranks 9th, compared to 7th a year earlier. The consultant does say that it remains important to work with industry peers, regulators and clients to develop a well-thought-out long-term strategy and avoid greenwashing risks.
“Despite shifting political priorities and the retreat of some major institutions from their net-zero commitments, clients in many markets remain committed to sustainability and environmental, social and governance (ESG) goals.”
A key shift in 2025 is the deeper integration of artificial intelligence (AI) and digital assets into wealth management strategies. Last year, firms were encouraged to explore technology ecosystems; now, the emphasis is on execution. EY stresses that firms must move beyond incremental improvements and build scalable, technology-driven infrastructures that enhance both client experience and operational efficiency.
“Many firms attempted to improve their data infrastructure in 2024, but it’s a complex task,” EY acknowledged.
Jens Schmidt, wealth and asset management partner at EY Luxembourg, said the report reflects the need to balance short-term adjustments with long-term strategic goals. “The report emphasises the need to flexibly prioritise—or deprioritise—certain investment areas while steadfastly executing on core strategic themes,” Schmidt said.
Technology as a catalyst for growth
Technology-enabled solutions are reshaping every stage of the investment fund life cycle—from AML checks and valuations to risk management—reducing manual workloads and improving compliance. The push for digitalisation continues to accelerate, and firms must act decisively to capitalise on new opportunities.
“Firms continue to view technology as the greatest enabler of improvement — not least by unlocking the power of partnerships. Identifying gaps in firms’ own capabilities is crucial to this process.”
The focus on digital assets and tokenisation has also intensified. In 2024, firms were advised to take a transparent approach to emerging technologies; in 2025, action is required. Tokenisation is expected to unlock new asset classes, improve liquidity, and attract a broader investor base. However, success hinges on building secure custodial services and navigating evolving regulatory frameworks.
“Firms should accelerate their adoption of digital wrappers, tokenisation, and blockchain technology,” EY advised. “High-net-worth (HNW) and institutional investors are demanding enhanced access to the next generation of alternative assets.”
Differentiation and client engagement
Another critical theme in EY’s 2025 guidance is the need for firms to sharpen their brand identity. As industry consolidation accelerates and competition intensifies, traditional strengths alone will no longer suffice. Firms must refine their brand messaging, develop unique investment offerings, and align strategies with client values.
“Clients are drawn to wealth and asset managers that deliver strong financial performance and are aligned with their vision and values. Firms need to clearly define their core purpose and use a strong brand strategy to defend their competitive advantages.”
EY highlights the growing importance of a purpose-driven approach, which includes sustainability, thematic investing, and meeting client expectations around wealth transfer and financial inclusion. This shift ties into a broader priority for 2025: broadening investor access. The influence of female investors, next-generation wealth holders, and alternative assets continues to rise, requiring firms to rethink their engagement strategies and offer more tailored solutions.
Wealth management: EY’s 2025 priorities
- Maintain a sharp focus on brand value and culture
- Balance growth and profitability
- Modernise data to fully harness AI and disruptive technologies
- Optimise talent management
- Leverage technology to enhance client engagement, transparency, and trust
- Expand investor access, engagement, and inclusion
- Navigate regulatory complexity with a strategic approach
- Drive product innovation, including through digital assets and tokenisation
- Advance sustainability initiatives through collaboration and awareness
- Adapt to new market realities, pivot business models, and build resilience
No room for passivity
The overriding message from EY’s 2025 resolutions is clear: firms can no longer afford to be passive. To remain competitive, they must modernise data strategies, adapt business models, and strengthen regulatory resilience. According to EY, those who fail to act decisively risk falling behind in an industry undergoing rapid transformation.
Further reading on Investment Officer:
- Private banks keen to embrace tech without undermining values
- Luxembourg wants to climb the value chain in finance
- Survey: Luxembourg private banks fall short in digitalisation