Advisors at an inflection point: focus, empathy and enablement in the modern wealth landscape

Recognizing these growing complexities, Capco launched a research study with financial advisors to explore the realities of business growth, client experience and operational efficiencies. The Voice of the Advisor study consisted of a set of question-led discussions with a diverse set of advisors – whose experience in the industry ranged two to 40+ years – across eight leading financial firms.

The first findings from this ongoing study, combined with the latest industry research, underscore a defining truth. Advisors who thrive are those that simplify complexity through three interdependent pillars: focus, empathy and enablement. Together, these form the foundation of the modern advisory model.

 

I. Growth – from expansion to focus

The wealth management landscape is evolving from broad expansion to strategic, focused growth. While asset accumulation remains the goal, the path to achieving it has fundamentally changed. Leading advisors are recognizing that sustainable growth is no longer about reaching every potential investor or offering every product.

Rather, it is about building deeper alignment between client needs and firm strategy. Success now depends on targeting the right client segments, leveraging data to stay ahead of shifting investor priorities, and designing specialized solutions that create measurable, lasting value.

Advisors in our study repeatedly emphasized that relationships and service quality, not just portfolio performance, now define competitive differentiation. Portfolio returns remain essential, but clients are increasingly drawn to advisors who act as collaborative partners in decision-making, not simply product providers.

As one respondent put it, “Clients have so many offerings – it’s a crowded market, so keen attention to servicing is the main differentiation.” Another echoed the same sentiment, noting, “The only way to stand out is through service levels because everyone has the same products.”

Recent market and industry trends reinforce this need for sharper focus on client servicing. Geopolitical tensions and tariff volatility have heightened investor anxiety, increasing demand for advisors who can not only explain portfolio impacts but also provide reassurance.

Recent industry research confirms that investment planning and high-touch service from financial advisors can help stop clients from panicking during volatile markets.¹ The same report suggests that, for many advisors, market uncertainty and volatility tend to increase client referrals – as investors turn to trusted sources for guidance.

This aligns with a key finding from our Voice of the Advisor survey, which showed that most advisors believe person-to-person referrals remain the most effective referral channel, far outweighing digital marketing or cold prospecting.

Taken together, the current uncertain market environment and the heightened pursuit of exemplary service and specialized advice underscore our central point: that meaningful business expansion is rooted in trust, not volume. The emphasis on talent and trusted relationships as growth levers is reflected in industry developments such as Vanguard’s 2025 restructuring of its advice business to emphasize personalized, advice-led growth.²

For many firms, the push to sharpen their focus will mean greater selectivity and depth, i.e. strategically narrowing client bases, refining segmentation and developing deep expertise in high-demand areas such as private equity, retirement income planning, and cross-generational wealth transfer. The modern growth playbook rewards depth over breadth, valuing enduring relationships that compound over time.

 

II. Client experience – empathy as the differentiator

Even as the industry becomes more data-driven and digital, empathy remains the cornerstone of an exceptional client experience. Advisors adopting new technology are finding that their most valuable differentiator does not come from access to information, but the ability to translate it into meaningful advice for clients.

Most advisors in our study described empathy not only as a soft skill, but also as a strategic business driver that allows advisors to anticipate needs and guide clients with precision and compassion. As one high-net-worth advisor shared, “Even though technology is extremely important to the client, I don’t think they recognize it unless it improves how we communicate or serve their needs.” This insight echoes a growing realization across the industry: empathy and technology are complementary, not competing.

A core element of empathy-driven client service lies in the advisor’s ability to leverage accessible client data to understand each client’s financial position and objectives. Empathetic advice and technology therefore go hand in hand, as advisors increasingly rely on CRMs, analytics and AI-enabled tools to construct holistic ‘Client 360°’ views that synthesize portfolios, goals and life events. Earlier this year an Advisor360° survey found that 76% of advisors at enterprise wealth management firms report immediate benefits from using generative AI tools in areas such as supporting communication and generating insights.³

Technological enhancements are not only transforming advisor operations but also reshaping client expectations – firms must ensure that digital experiences meet these rising standards. As one advisor noted, “Quality of digital experience is crucial – especially the mobile experience for UHNW clients who have light touch on money movement but want seamless access to performance updates.”

Together, these developments highlight that empathy in wealth management is built upon data accessibility, responsiveness and the thoughtful integration of technology into every client interaction.

Empathy is also being redefined by the expectations of a more diverse, tech-savvy client base. During periods of market volatility, advisors report spending more time coaching clients through uncertainty than executing trades, underscoring their dual role as strategist and counselor.

Advisors who succeed in the coming decade will be those who embed empathy into every client touchpoint, use data to anticipate emotions and needs, and communicate with honesty and clarity during uncertainty. In a world where products can be replicated and algorithms commoditized, empathy remains the most irreplaceable asset.

 

III. Efficiency – enablement for scale

Efficiency in wealth management has evolved from simply reducing costs to expanding capacity. Advisors now see efficiency not as a back-office metric but as an enabler of growth and service excellence. Today, the question is no longer “How do we save time?” but “How do we create more time for clients?”

Advisors in the Voice of the Advisor initiative reported a familiar challenge: balancing direct client work and business development with growing administrative and compliance complexities. Many advisors view AI and automation as the key to resolving this tension. One respondent put it succinctly: “Sales support is the highest area of improvement – my book is growing fast, and I need help managing volume.”

Firms are responding accordingly. UBS reports that 60% of its AI spend focuses on advisor productivity, to lessen the burden of administrative tasks so that advisors can have more meaningful and focused conversations with clients.⁴ BlackRock’s Aladdin Wealth, meanwhile, has integrated Investment Navigator to automate compliance and suitability reviews.⁵

In general, firms are shifting from pilot projects to enterprise-wide AI deployment, and linking digital strategy directly to advisor enablement. Leading firms are committing to scaling personalization through AI and streamlined workflows, with productivity gains unlocking increased capacity for client servicing – therefore positively contributing to client satisfaction.

These developments point to an environment where technology empowers advisors to focus on relationships and strategic growth rather than administration. As one “Voice of the Advisor” respondent explained, “Personal relationships always outweigh everything else,” a reminder that even as firms modernize their operations, the foundation of growth remains the human connection between advisor and client.

 

Blueprint for the future advisor

Across Capco’s advisor conversations and industry experience, one message is unmistakable: the future of advice will be defined by those who balance focus, empathy and enablement.

In a market saturated with conversations about the importance and future of AI, wealth management firms should view AI not as a standalone solution but as a powerful enabler of advisor growth. By thoughtfully implementing AI and modernizing tech stacks across the advisor workflow, firms can meaningfully reduce administrative burden and generate meaningful insights for advisors and clients.

Advisors with the right focus, empathy and enablement will be best positioned to scale their business, deepen their client relationships and take advantage of operational efficiencies. The future belongs to advisors who can find the right mix of technology and human connection to deliver clarity, confidence and value in a world that often feels uncertain. Advisors who master these three dimensions will set the pace for the industry’s next chapter.

 

References

¹ https://www.businesswire.com/news/home/20251208084400/en/InspereX-Survey-Financial-Advisors-See-Volatile-Path-to-Equity-Gains-in-2026; https://www.insperex.com/market-linked-products/advisor-pulse-survey
² https://www.ft.com/content/c22734c9-85ea-47c7-bc34-2be6457e9e7f
³ https://www.businesswire.com/news/home/20250225609320/en/Advisor360-Survey-Generative-AI-Use-Surges-Among-Financial-Advisors
⁴ https://www.fnlondon.com/articles/ubss-rob-karofsky-on-using-ai-to-boost-us-wealth-arm-60-of-our-efforts-are-focused-on-productivity-afab7867
⁵ https://fintech.global/2025/01/27/blackrocks-aladdin-wealth-enhances-compliance-with-investment-navigator-integration/