Professional Adviser: Digital natives, critical minds: What Gen Z's scepticism means for the future of wealth management.

Wealth management is at a generational inflection point. By 2050, more than £7trn is expected to pass from older clients—half of whom are over 70—to their children and grandchildren.

As a result, the industry faces a radical shift in generational expectations. Gen Z, shaped by digital-first experiences and growing distrust of traditional institutions, is poised to challenge long-held models of advice and engagement.

For firms to remain relevant, they must rethink both the tools and the tone of their client relationships by embracing interactive technology, adapting adviser roles, and building multi-generational trust from the ground up.

From paper trails to portals: Why digital needs catching up.

Today's younger clients expect wealth management to mirror the intuitive, on-demand experiences they're used to elsewhere. While older clients may still prefer paper statements and face-to-face meetings, Gen Z seeks real-time access, mobile interactivity, and transparency.

They have grown up with seamless digital interfaces and expect their financial lives to be managed with the same ease and accessibility as their social media, streaming services, or online shopping. This isn't merely a preference; it's a fundamental expectation that underpins their trust and engagement.

In order to meet the needs of Gen Z, firms must invest in digital infrastructure that enables clients to engage with portfolios dynamically. This can be done through the use of AI tools that allow clients to interact with their portfolios and by using a "copilot" model, where AI sits alongside advisers to help them with tasks, such as coming up with investment ideas or managing compliance, allowing them more time to focus directly on client relationships.

Advisers as guides, not gatekeepers.

The next generation of clients aren't looking for someone to manage money behind closed doors. They want a strategic partner in understanding and decision-making, requiring a new breed of adviser: fluent in digital tools, responsive to shifting values, and capable of delivering insight, not just instruction.

Traditionally, the adviser-client relationship, while strong, is not necessarily interactive. Clients trust their advisers to make the right decisions, but growing up in the information age, Gen Z has learnt to be sceptical. They want to understand the 'why' behind the 'what,' meaning advisers need to pivot from being information gatekeepers to knowledgeable guides, helping clients navigate complex financial landscapes and make informed choices.

As demand for advisers grows over the next 20–30 years, firms must reskill their workforce to meet these expectations, ensuring a blend of human touch with AI-driven recommendations to enhance, not replace, the human connection.

The real risk lies in waiting too long.

Beyond client experience, the structural challenges of wealth transfer, including managing fragmented family relationships, estate planning gaps, and complex tax dynamics, require immediate attention.

Engaging with beneficiaries before wealth transitions is crucial to maintaining continuity and avoiding client attrition. However, many firms are still operating on outdated timelines and assumptions. Firms that delay tech adoption, data integration, and family-wide relationship-building risk being disintermediated entirely.

Building trust isn't something that can be done overnight, and if firms want to build trust with Gen Z clients, they need to embrace Gen Z's scepticism about wealth management.

This scepticism is not a barrier—it's an invitation for greater transparency, engagement, and a more collaborative approach to financial advice.

By acknowledging and addressing their concerns head-on, firms can futureproof their partnership model for generations to come. The future of wealth management hinges on the ability to not just meet but anticipate and exceed the expectations of this influential new cohort.

Important information

The following information can be sourced to Wealth-X:

• By 2050, more than £7trn is expected to pass from older clients—half of whom are over 70—to their children and grandchildren.