What happened?
The Wealth and Asset Management 4.0 study found that firms now expect up to three-quarters of client interactions to be conducted digitally within two years, while 40% of investors view digital access as a priority.
Around 39% of investors already look to their chosen firm for goal-based financial advice, with demand for retirement, next-generation succession and real-estate investment planning advice expected to rise by roughly 10% over the next two years. Over one-third of firms reported a high return on investment from digital channels, and 89% of investors singled out mobile apps as their preferred medium of interaction.
Why does it matter?
The research suggests success lies in advisers embracing a holistic approach to helping clients achieve their overall life goals, rather than relying on static demographic labels such as ‘mass-affluent’ or ‘UHNW’.
Asking ‘where are they in their journey?’ rather than ‘who are they on paper?’ produces more nuanced, higher-quality advice, and encourages more robust fact-finding rather than advice built on demographic assumptions.
Who is affected?
Financial planning and wealth management firms adapting their client segmentation, digital channels and compliance processes to a changing market.
Key risks
- Relying on static demographic labels rather than life-stage needs, producing less nuanced advice.
- Losing the strength of the client-adviser relationship as digital-first services expand.
- Blurring the distinction between advised and non-advised transactions as digital models evolve.
- Manual, administrative compliance processes failing to keep pace with rising client demand and squeezed budgets.
Actions to take
- Build a client-centric culture, with senior management visibly leading a people-focused, purpose-led business strategy.
- Put in place a robust compliance framework that reflects the distinction between advised and non-advised transactions.
- Automate manual, administrative compliance tasks, including case file reviews and SMCR obligations.
- Widen the product and channel portfolio to match rising client demand for choice and digital access.
Wider implications
As digital delivery becomes the default across the industry, the real differentiator for advice firms will be the quality of the holistic, human layer built on top of digital capability, not digital investment alone.
Recommendations
TCC can help firms improve their organisational culture, navigate the regulatory distinction between advised and non-advised transactions, and use smart RegTech to make case file reviews and other compliance processes more efficient.
Supporting sources
Frequently asked questions
What does a “holistic approach” mean in this context?
Advising clients based on where they are in their life journey and goals, rather than static demographic categories like ‘mass-affluent’ or ‘UHNW’.
Are clients moving away from wanting human advisers?
No; the research found hybrid human-digital models are growing, but the human relationship remains important even as digital access becomes a priority for many investors.
What compliance challenge does a digital-first advice model create?
Firms need to understand the regulatory distinction between advised and non-advised transactions to protect clients and their own business.
How can firms free up capacity to focus on holistic advice?
By automating manual, administrative compliance tasks such as case file reviews and streamlining SMCR obligations.
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