Amit Gujar: “Deriving value from AI remains a challenge. Around 70% of financial institutions still struggle to scale AI solutions due to unclear investment priorities and weak alignment with business objectives. The focus remains on isolated, cost-saving use cases rather than an enterprise-wide transformation, allowing fintechs to maintain an advantage through faster implementation.
“Convergence of traditional and alternative asset management. Integration between traditional and alternative investments has accelerated, driven by increased investor appetite, greater product availability and the rise of semi-liquid and hybrid structures, which now translate into tangible offerings across markets, increasing uncertainty and regulatory changes.
“A volatile macro environment, coupled with new regulations and higher taxes for wealthy clients in the UK, has led to changes in client residence and asset location. This has increased the need for agility to serve an increasingly international client base.”
AG: “Incremental change is no longer enough; Leaders must take an active and dynamic approach to strategy, continually adapting rather than relying on static, long-term plans.
“Regulatory changes, while costly, can create opportunities to strengthen business models and improve business outcomes when managed strategically.
“As mentioned above, success with AI requires strong foundations in data, talent and governance, along with a holistic approach that reinvents the business to deliver real value.”
AG: “Clients continue to prioritize real-time, multi-channel access to their wealth, a trend accelerated by intergenerational wealth transfer and the growing engagement of the next generation.
“Alternatives are increasingly seen as essential to achieving higher risk-adjusted returns, diversification and portfolio resilience. The focus has shifted from awareness to practical implementation, with some regions, such as the Middle East, also considering digital assets as a separate asset class.
“Next-generation customers expect accessibility, personalization and transparency, driving demand for holistic, technology-enabled engagement models.
“Increasingly, mobile clients are looking for solutions that work across jurisdictions and demand frictionless experiences in both investment management and service delivery..”
AG: “Emerging markets, led by Asia and the Middle East, are contributing an increasing proportion of new global wealth and reshaping customer demand.
“Local-by-local investing is regaining strength as investors move away from US-focused portfolios amid currency and geopolitical shifts.
“Active ETFs (exchange-traded funds) and democratized private markets are expanding investor access to institutional-grade strategies and reshaping product innovation.”
AG: “Markets appear to be entering an end-of-cycle phase, with elevated public asset valuations and signs of stress in private markets, raising concerns about potential corrections and mitigation strategies.
“Geopolitical risk remains high, with an increased frequency of major events reinforcing the need for resilience and diversification.
“Global AUM (assets under management) is expected to increase, but profitability will remain limited without cost restructuring and digital productivity gains.
“Offshore wealth centers such as the UAE will continue to attract flows thanks to favorable tax regimes, regulatory stability and investor-friendly frameworks. Balancing exposure between developed and emerging markets remains key.”
AG: “Thematic strategies focused on artificial intelligence, infrastructure and digital assets are expected to outperform, supported by secular capital flows and innovation momentum – this includes blockchain and select cryptocurrencies in regions such as the Middle East.
“ETF-focused strategies will continue to be prominent, driven by the growth of active ETFs and low-cost passive allocations.
“Diversification and scenario planning are increasingly important amid elevated valuations as investors balance staying invested versus holding cash.”
AG: “Wealth management is undergoing a multidimensional transformation: reshaping who companies serve, what they offer, how they engage clients, how they deliver, how they enable their businesses, and how they develop talent.
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“Growth is shifting to Asia and the Middle East, led by founder and family wealth, while Europe remains an important anchor.
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Emerging and high-wealth segments are increasingly viable through scalable hybrid models. Local relevance, rather than global replication, will be critical.
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Clients expect holistic, people-led and technology-enhanced advice on a broader range of financial, real and private assets.
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The winning models combine human judgment with data-driven insight, focusing on relevance rather than generic personalization.
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Productivity gains will come from empowering frontline teams with smarter CRM, predictive analytics, optimized coverage, and incentives aligned to lifetime value.
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Operating models must balance scale, agility and integration, with global centers of excellence complemented by trusted local teams.
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Seamless integration between data, platforms and coverage, supported by modular systems, will drive responsiveness. “Strategic mergers and acquisitions will continue to accelerate growth, although creating value and capturing synergies remains a challenge.”
“Q&A with: LEK Consulting” was created and originally published by Private Banker International, a brand owned by GlobalData.
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