An 8.1% increase in financial assets fueled by surging stock markets propelled financial wealth to a record $305 trillion in 2024.
But Boston Consulting Group, which presented those numbers in a new proprietary analysis, said that the underlying engine of the financial industry — organic expansion — needs renewed strategic focus.
Only 28% of wealth manager asset growth in the past 10 years was from existing advisors, and that number falls to 22% in mature markets, Boston Consulting Group said in a news release. Firms relied heavily on external boosts such as mergers and acquisitions, market performance and advisor recruitment, the firm reported, adding that those sources are no longer reliable revenue boosters.
“What defines winners today is no longer exposure to market performance or the ability to poach senior bankers, but their ability to grow from within,” Michael Kahlich, managing director and partner at BCG, said in the release. “Firms that deliberately invest in advisor enablement, brand identity, and next-gen client strategies are outperforming peers — not just in revenue, but also in valuation multiples.”
Key findings of BCG’s Global Wealth Report 2025: Rethinking the Rules for Growth, include:
Asia-Pacific is set to be the leader in wealth creation, with projected financial wealth growth of 9% compounded annual growth rate (CAGR) through 2029. That dramatically outpaces projections for North America (4%) and Western Europe (5%).
Cross-border wealth increased 8.7% to $14.4 trillion in 2024. The previous four-year average annual growth was 6.3%, and BCG attributed the increase to rising demand for geographic diversification and safe havens. Singapore (up 11.9%) and the UAE (up 11.1%) were the leading booking centers. Switzerland, Hong Kong and Singapore are expected to absorb two-thirds of all new cross-border wealth by 2029, according to BCG.
Wealth management assets under management rose by 13% in 2024, a much faster pace than overall financial wealth (8.1%), but growth in revenue was only 7.1%, because many firms saw falling returns due to a changing rate environment.
Universal banks outpaced pure-plays in organic growth, deriving 32% of their AuM growth from existing advisors. That’s twice that of pure-play firms (15%), and benefitted from structural advantages in lead generation.
Firms have started using generative AI for prospecting, with some reporting 500% increases in lead generation and a doubling of conversion rates. Firms that have integrated data-driven client retention systems achieved increases in product revenue of up to 15%, and 20% to 30% boosts in productivity.
Strategic Imperatives
Firms looking to elevate their organic growth engines should be using four high-impact levers, according to the report:
Brand Differentiation: Firms can build trust and relevance by maintaining clear identity and messaging and bolstering digital marketing
GenAI-Driven Client Acquisition: Agentic AI can help to identify high-potential prospects, build comprehensive profiles, and facilitate personalized outreaches
Data-Driven Recommendation Systems: Wealth managers who integrate data across all business lines can form a comprehensive view that helps to identify what a client might need next.
Next-Gen Client Engagement: Personalize the client experience to appeal to younger investors who have digital service expectations
“The rules of the game are shifting,” Daniel Kessler, managing director and senior partner at BCG and co-author of the report, said in the release. “Firms that embrace AI-enabled prospecting, personalized onboarding, and digital tools that boost productivity will be the ones to capture the next wave of growth. Wealth is being created globally, but the challenge for wealth managers will be to capture it.”
