Developments in the wealth management sector look set to continue into 2026, as regulatory changes take effect and accelerate alongside the continued evolution in the digital landscape and investment markets following a volatile 2025.

Trends expected to shape the coming year include the growing role of technology in wealth and investment management, shifting investment strategies, changes in the key risks facing investors and their advisers, and the development of data ecosystems.

Technology

Artificial intelligence (AI) seems set to be a key theme this year, with firms continuing to integrate the technology to meet client demand.

“In 2026, the biggest impact of AI will be its ability to unify agentic workflows across the front, middle, and back office,” said Addepar CTO, Bob Pisani.

“Today, each function often works in its own system with its own data and processes. AI will help bridge these gaps by cleaning and reconciling data in the background, automating the flow of information across teams, and generating insights that move seamlessly from portfolio construction to reporting to client conversations.

“This creates a more integrated operating platform where advisers, operations teams, and investment staff work from the same trusted foundation.”

This sentiment was echoed by EY UK wealth leader, Roopalee Dave, who highlighted that a major generational shift in wealth was underway, with Millennials and Gen Z increasingly taking control of their finances and looking to build smart, digitally enabled investment portfolios.

“Investors today increasingly look for a digitally enabled experience, with human advisers available where it matters most,” Dave continued.

“While many firms are already investing in digital tools, legacy systems limit the ability to deliver the truly seamless, intuitive experience that clients expect.

“Firms must respond to these challenges as opportunities – implementing strategies to modernise systems while maintaining core processes and leveraging emerging tech - such as advanced data analytics and AI - to streamline customer interactions and ultimately add value that helps the business to grow.”

St. James’s Place chief investment officer, Justin Onuekwusi, said that AI was likely to remain a dominant theme in 2026, but investors will increasingly want to see how those benefits spread beyond a narrow group of mega-cap technology stocks.

“The key question is not whether AI continues to grow, but whether its impact becomes broad-based enough to justify today’s high valuations,” he added.

Alternatives and private markets

Wealth managers also highlighted the rising demand for alternative and private markets assets in investment portfolios, which is being met by greater accessibility.

“Private markets are entering a new phase,” said Pisani. “We are moving from PDFs, quarterly updates, and manual interpretations into a world of structured data, standardisation, and ongoing updates.

“This shift will unlock a new level of end-to-end portfolio management driven by better analytics and increased visibility that has not been possible before. It will fundamentally change how advisers manage private capital exposure.”

Dave added that digital assets and tokenisation had the potential to usher in a new generation of investment products that are more efficient and accessible.

"The EY Global Wealth Survey (2025) found a third of UK Millennial and 36 per cent of Gen X investors are looking to diversify into alternative assets,” she said.

“Following the FCA’s newly published guidance on the regulation of the UK crypto market, wealth firms will be looking to capitalise on clearer UK regulation to offer more flexible opportunities for clients, and safely capture the next wave of growth in a digital-first investment ecosystem.”

Meanwhile, St. James’s Place fixed income strategist, Greg Venizelos, noted that private credit had grown rapidly in recent years, and while issues so far had been isolated, the scale of the market meant investors needed to remain alert.

“Stress in this area could spill over into traditional bond markets if investors are forced to raise liquidity quickly,” he added.

Investment trends

Last year saw significant volatility in investment markets, with many wealth managers seeking diversification and risk mitigation to manage client finances.

However, St. James’s Place chief economist, Hetal Mehta, felt some of the major uncertainties facing markets, including trade and tariff concerns, could begin to ease in 2026.

“This could be supported by AI-related investment, productivity improvements and targeted stimulus in major economies such as the US and China,” Mehta said.

“However, risks remain. Concerns around inflation have not disappeared, and any perception that central bank independence is being weakened could quickly undermine confidence and market stability.”

Onuekwusi added: “From an opportunity set, we continue to see value in looking beyond the most crowded parts of the market.

“Emerging markets remain attractively priced relative to the US, and a weaker dollar can provide a meaningful tailwind by easing financing pressures and supporting balance sheets. Over time, tilting portfolios towards cheaper asset classes has consistently improved long-term return potential.

“The UK equity market also looks compelling. Valuations are attractive versus global peers, dividend yields are among the highest internationally, and the market’s exposure to defensive sectors such as healthcare and consumer staples can provide resilience during periods of market stress.”

Advice gap and data

Key regulatory changes expected in 2026 include the FCA’s targeted support regime and wider advice guidance boundary review, with next year set to be “a pivotal milestone” in filling the advice gap, according to Dave.

“A recent EY survey showed over half (54 per cent) of young adults have never sought financial advice or guidance, partly because they believe they do not have enough savings to warrant it,” she said.

“In reality, everyone – no matter their age or financial status - can benefit from financial guidance to ensure they are making the most of their money now, and setting themselves up for the future.

“Many wealth firms are already leveraging big data and advanced analytics to fill this gap. But while these tools can unlock value, businesses can’t generate insights if they don’t have solid, integrated data foundations in place.

“This will be a priority in 2026 – consolidating data, so rather than being fragmented or sat on a legacy platform, it is accessible and actionable on one compliant system.”

Pisani added that the wealthtech ecosystem was moving beyond simple point-to-point integrations, with 2026 set to see a more advanced form of interoperability taking shape.

“Data will flow reliably in both directions, systems will communicate through shared standards, and partners will collaborate through open architectures rather than isolated interfaces,” he said.

“This creates an environment where portfolio, client, and operational data can move through the investment process without friction.

“With this foundation in place, AI models and autonomous agents can operate on clean, connected data - augmenting decision-making and powering end-to-end workflows. It is a fundamental shift from a collection of tools to a true ecosystem.”

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