#United States #Wealth Management #Technology #Milwaukee #Wipfli

Wealth Management Executives Show Optimism and Caution

In a recent survey conducted by Wipfli, a top 25 advisory and accounting firm, wealth management executives expressed a strong sense of optimism regarding revenue growth for 2025. The survey, which gathered insights from 109 C-level executives across various firms in the United States, revealed that an impressive 91% of respondents expect their firms to achieve a growth rate of 5% or higher, with 36% of those anticipating growth between 8% and 10%. While the outlook is bright for revenue, there is a palpable caution surrounding technology investments.

The Importance of Technology

Wealth management leaders recognize the critical role technology plays in their success. As automation, artificial intelligence (AI), and digital tools increasingly transform business operations, executives are keen to leverage these advancements. Ronald Niemaszyk, a partner at Wipfli, noted, "Respondents' answers reflect an understanding that technology is essential to high-performing companies." He emphasized that wealth management firms must ensure they are maximizing the benefits of digital tools to enhance efficiency and effectiveness.

Despite this understanding, executives are proceeding with caution regarding tech investments. The survey identified cybersecurity and regulatory compliance as two of the primary concerns that wealth management leaders must address in the upcoming year. They are aware that implementing the right technology tools while safeguarding their operations from potential risks is imperative.

Succession Planning Insights

Additionally, the Wipfli report explored the theme of succession planning within the wealth management sector. The findings revealed that a significant portion of executives is troubled by the rapid pace of technological advancements, with 52% believing these changes will prompt ownership transitions in their firms in the future.

While many executives favored internal transitions—passing leadership onto employees, shareholders, or family members—the reality suggests a trend toward third-party sales. This discrepancy points to a crucial opportunity for executives to align their succession plans with the long-term vision for their firms. Justin Koebel, director at Wipfli, remarked, "It's an interesting insight suggesting an opportunity for executives to start thinking about how they can facilitate an internal transition if that's what they want to see.”

Current State of AI in Wealth Management

As for the use of AI within wealth management, opinions remain mixed. Many executives acknowledge the potential advantages of AI applications but admit that most firms are still in the exploratory phase when it comes to fully integrating AI into their operations. This cautious approach underscores the need for firms to carefully assess their readiness before making substantial investments in AI technology.

In summary, the insights gathered by Wipfli illustrate a landscape where wealth management executives are optimistic about revenue growth yet wary of the challenges posed by technology investments and changes in ownership dynamics. This balanced perspective will likely shape the strategic decisions of these leaders as they navigate an increasingly complex financial environment, all while striving to maintain a competitive edge.

To explore the complete findings, be sure to access the full Wipfli wealth management research report, which provides in-depth analysis and detailed data breakdowns on pertinent trends within the industry.

About Wipfli LLP

Wipfli LLP is an advisory firm dedicated to helping clients thrive in the modern marketplace. Their extensive team of over 3,300 associates offers a comprehensive suite of solutions—including digital strategy, risk management, financial consulting, and outsourcing—serving more than 55,900 clients.

Through their commitment to quality and excellence, Wipfli enables firms to navigate today's challenges and capitalize on new growth opportunities effectively.