Hyper-personalisation key for HNW advice clients

Artificial intelligence is where financial advisers looking to provide “hyper-personalised” advice need to turn, according to the Capgemini Top trends 2025: Wealth management report.

The growth of wealth tech platforms that have make personalised services more accessible and affordable have led investors to want greater levels of personalisation across the board, Capgemini said.

Its earlier World Wealth Report 2024 revealed that more than 64 per cent of high-net-worth investors (HNWI) are concerned by the lack of personalised advice tailored to their financial situation.

“Like in all other sectors, artificial intelligence (AI) is fast emerging as a transformative force to enhance client intimacy with wealth management, from creating then updating 360-degree client profiles to leveraging behavioural finance techniques, AI is promising to help relationship managers recognise psychological biases that may influence decision-making,” Capgemini’s Anirban Bose said in the report.

“Moreover, the generative AI can enable hyper-personalisation, allowing firms to tailor service touchpoints to clients’ unique needs, preferences, and life events. The result? Moments-that-matter engagement and the foundations of solid, long-lasting relationships.”

According to the report, wealth management executives rank intelligent insights for portfolio optimisation as the second most significant impact of AI after manual process automation.

“AI can create personalised messages, offers and experiences that resonate with each client – encouraging engagement,” Capgemini added in its 2025 report.

“AI can tailor product recommendations to individual preferences to spark engagement and boost client loyalty.”

The report also argued that advisers could use the technology to help optimise tax-planning strategies and offer ways to “amplify returns” to improve their clients overall wellbeing.

The use of AI in advice practices is a hot topic, with Praemium’s AI & Integrations report also highlighting personalisation as a key benefit of the technology.

While there are a number of ways in which advisers are utilising AI technologies, the report found the most common use was in managing client relationships and communications tasks, with six in 10 (60 per cent) indicating as such, which the report said is in recognition of AI’s ability to automate and personalise interactions while ensuring timely and relevant interactions.

It also found that advice firms with strong growth intentions often have high levels of digital integrations, which can correlate with an increased tendency towards increased AI adoption.

According to the report, 65 per cent of those exhibiting such growth plans are already using artificial intelligence (AI).

The report’s findings revealed that 27 per cent of advice firms have a high level of digital integration, though high-net-worth advisers (33 per cent) were more likely to fall under this category compared with general advisers (21 per cent).

Earlier research from Praemium and Investment Trends found that HNWIs with unmet advice needs is stable at 58 per cent, but the broader HNW pool now manages $3.4 trillion in investable assets, up from $2.98 trillion in the previous year.

The 2024 High Net Worth Investors report defined HNWIs as those with at least $1 million in investable assets, with the research finding that around 690,000 individuals are now classified as HNW, representing an 8.7 per cent rise from 635,000 in 2023.