UK wealth managers risk losing GBP £90 billion as millionaires flee
More than half of UK wealth managers are not prepared to handle a major shift in client demands and expectations, according to new research. As the UK sees a record movement of millionaires moving their assets abroad, concerns mount over whether local firms can retain wealthy clients in a rapidly changing financial landscape.
Industry lag
The research highlights that 45% of UK wealth management firms continue to rely on manual processes, a figure notably higher than the European average. Almost half of UK respondents cited budget limitations as the main barrier to adopting new technologies. While many firms are investing in artificial intelligence projects, only 55% report these initiatives as being 'very effective', with many still stuck in the trial phase rather than delivering real client outcomes.
Generational shift
UK firms also face challenges when serving younger clients. Only 57% of respondents believe they are ready to support Millennials and Generation Z with their wealth needs. This is the lowest readiness score among major European regions. The report identifies a risk that wealth managers are failing to adapt to new client demands for digital engagement, hyper-personalisation, and real-time information.
Global competition
International competitors are advancing. Some firms across Europe and the US have already committed to digital-first strategies, gaining ground as UK organisations deal with legacy systems and slower adoption of new technologies. As a result, the sector's position as a global wealth hub is at risk, with other cities such as Dubai, Singapore, and Zurich being seen as attractive alternatives for high-net-worth individuals.
Capital flight
The weakness in the industry's approach comes against a backdrop of increasing numbers of wealthy residents and investors moving money out of the UK. Revised estimates for 2025 suggest approximately 16,500 millionaires will leave the country, taking more than GBP £90 billion in investable assets with them. Factors contributing to the trend include broader concerns about political and tax changes, but the research suggests operational shortcomings within wealth management are a significant part of the picture.
Pressure for change
Wealth management firms are under mounting pressure to modernise technology platforms, improve client experience, and offer services that meet the expectations of a new generation of clients. The data reveals an urgent need for investment in digital tools and a shift away from legacy methods to avoid further reputational and financial losses.
"This is an existential threat to relevance," said Gemma Livermore, International Financial Services Marketing Director, Seismic. She adds, "The risk extends beyond individual firms losing clients. If the UK can't properly serve the high-net-worth individuals already here, why would wealthy newcomers choose London over other wealth hubs like Dubai, Singapore, or Zurich?"
