The ongoing rapid evolution of the financial services industry only continues to intensify. Market volatility, demographic shifts, and evolving client expectations are forcing industry leaders to rethink growth strategies and competitive positioning.
In a recent interview with Asset TV, our own Goshka Folda, Managing Director and Global Head of Research at ISS Market Intelligence, shared insights on the demographic and economic forces redefining wealth creation, investor behavior, and the future of asset management. She reminded the audience that the industry today revolves around a critical question for leaders across asset and wealth management and all firms in the investing ecosystem: Where will your next dollar of growth come from—and who will be your client of tomorrow?
This blog recaps the conversation, highlighting four key takeaways asset and wealth managers must understand to anticipate change, engage emerging generations, and capture sustainable growth in a rapidly evolving landscape.
Watch Goshka’s full Asset TV segment now and read on for key takeaways:
How to Achieve Growth in Volatile Times
Despite modest market growth in recent years, anxiety among financial leaders remains high. The question dominating boardrooms today is simple yet profound: Where will the next dollar of growth come from?
Organic growth is increasingly difficult to achieve. Firms are weighing acquisition strategies against innovation, all while navigating economic uncertainty. Banking, asset management, wealth management, and insurance sectors are under pressure to rethink their models and find sustainable paths forward.
Key takeaway: Growth will not come from doing more of the same. It requires bold thinking, new ideas, and a willingness to adapt to changing market dynamics.
Your Client of Tomorrow: What Asset Managers and Industry Leaders Need to Know
For decades, financial institutions benefited from the baby boomer retirement wave—a demographic trend that fueled asset and wealth management growth. That era is ending. Gen-X is racing to build wealth before retirement, but a demographic gap looms before millennials and Gen-Z fully enter the market.
This discontinuity will impact inflows into investments, mutual funds, and ETFs. Firms must anticipate these shifts and design strategies to engage younger generations early. Having a digital-first mindset and values-driven approach to investing is key in today’s competitive landscape.
Key takeaway: Your client of tomorrow will not look like your client of yesterday. Success today for investment industry professionals depends on understanding generational behaviors and building trust with emerging segments.
Modern Investing Revolves Around Personalized & Digital Experiences
Today’s investors expect financial experiences that feel as intuitive and personalized as their favorite social platforms. Think about how Amazon or Instagram curates a feed—every interaction feels tailored to you, not a demographic segment. This is the new benchmark for financial services.
Clients are no longer satisfied with generic advice or one-size-fits-all products. They want real-time insights, personalized recommendations, and seamless digital engagement. Fintech disruptors like Robinhood, Revolut, and Nubank are just a few examples of those who have embraced this model, creating experiences that feel like a “personalized financial feed” rather than a static dashboard.
For incumbents, the challenge is delivering this level of personalization at scale. Advisors already strive to customize solutions, but technology is now making it possible to do so for many clients simultaneously. Platforms and tools that deliver direct indexing capabilities, tax optimization strategies, and customizable portfolios are paving the way for hyper-personalized investing. And with AI advancing rapidly, the future could bring financial products designed for a single individual—think unique mortgage terms, bespoke credit cards, and investment strategies tailored to personal goals and values.
Key takeaway: If firms want to remain competitive, they must consider aligning their models with direct-to-consumer (DTC) trends. Modern investors don’t want to engage with static, transactional platforms, instead they are looking for experiences that can be delivered via dynamic, personalized ecosystems. The winners of today and tomorrow will be those who combine digital agility with scalable personalization, creating experiences that feel as unique as a curated social feed.
Why D2C Is Here to Stay
D2C platforms have fundamentally changed the way financial services engage with customers. What began as a trend after the 2008 financial crisis, when investors opened accounts directly with online brokerages, was accelerated during the pandemic, as younger generations flocked to D2C platforms like WealthSimple and Nubank, drawn by richer offerings, intuitive interfaces, and greater control over their financial lives.
One standout example is Robinhood. Initially launched as a simple trading app, Robinhood has rapidly expanded its ecosystem to include retirement accounts, advisory services, crypto trading, and even tokenization initiatives. This evolution underscores a critical lesson for incumbents: agility matters. Robinhood didn’t wait to perfect a full-service model before entering the market—it started small, iterated quickly, and scaled based on client needs and market opportunities.
For traditional firms, the takeaway is clear: start somewhere, and don’t assume you have to end there. Agility and adaptability are now competitive imperatives. Incumbents must embrace a mindset of continuous innovation, experiment with new offerings, and surround clients with value-added solutions that go beyond the traditional banking relationship.
Key takeaway: D2C models thrive on speed, flexibility, and client-centric design. Firms that fail to adopt these principles risk losing younger, digitally savvy clients to more nimble competitors.
The financial services industry is entering a new era defined by agility, personalization, and digital-first engagement. Clients expect experiences that feel as tailored as their social feeds, and technology is making that possible at scale. Firms that embrace innovation, anticipate demographic shifts, and deliver hyper-personalized solutions will lead the market. The question isn’t whether change is coming—it’s whether your organization is ready to own the future.
