Wealth management firms are experiencing lower revenue margins due to cash sorting and rising deposit betas. This trend has led to revenue margins falling by around six basis points in 2024 and an additional three basis points in the first half of 2025. Three-quarters of leading wealth managers are facing this margin compression.

Consolidation in the wealth management industry has become a reality, with approximately 210 transactions per year since 2022. This trend is shaping the competitive landscape and could result in up to 20% fewer asset and wealth managers by 2029.

Alternative and semi-liquid investments are gaining popularity, with the market growing by 41% year-over-year in 2024. The rise of interval funds, non-traded vehicles, and evergreens is making the private market more accessible to retail and high-net-worth channels.

Clients with a network of $1-10 million are a key group, holding approximately $38 trillion in investable wealth with roughly 6% annual growth. They generate stable revenue yields of 90 to 100 basis points, making them an important segment for wealth managers.

Read more at Yahoo Finance: Q&A with: Oliver Wyman