As we step into 2026, the European wealth management industry faces a paradoxical landscape. Profit growth remains elusive, pressured by rising operational costs, complex regulations, and heightened competition (1). Yet, opportunities for differentiation, product innovation, and client engagement have never been more compelling. Investors are increasingly seeking cost-efficient solutions, yet interest in private markets, hybrid investment structures, and AI-enabled advisory tools is accelerating.  

 

Product Innovation: ETFs, alternatives, and hybrid Structures 

The evolution of investment products in Europe has been striking. Active exchange-traded funds (ETFs), once a niche offering, are now reshaping the market. Between 2020 and 2024, the share of active UCITS ETF net flows rose from 2.1% to 6.1%, while assets under management grew 80%, from €27.2 billion in 2023 to €49 billion in 2024 (2-3).  According to the Deloitte Center for Financial Services, this growth signals more than a passing trend—it reflects a structural shift in how European investors approach professional management, combining the oversight of active strategies with the liquidity, transparency, and cost-efficiency of ETFs. Hybrid products and  ETFs are also gaining traction. Deloitte research found that they offer an important buffer against the slow growth of traditional mutual funds, enabling wealth managers to meet client demands for cost-efficient products without sacrificing active management strategies. In short, Europe is witnessing a convergence of product types that challenges traditional distinctions between mutual funds, ETFs, and alternatives, creating new opportunities for innovation and differentiation. 

Moreover, private markets remain a critical vector for growth. The expansion of semi-liquid funds, interval funds, and private market vehicles tailored for retail investors is reshaping access to alternatives (1). Strategic partnerships are increasingly central to this evolution. Legal & General’s collaboration with Blackstone, for example, allows clients to access Blackstone’s credit origination platform, while committing a portion of annuity flows to its funds.(4)  Such partnerships highlight the growing importance of collaboration between wealth managers and alternative asset managers to expand capabilities and distribution reach. 


Regulatory evolution: unlocking access and enabling innovation 

Europe’s regulatory landscape is evolving in ways that support innovation and broaden investor access. The Savings and Investment Union (SIU) is designed to improve returns for EU citizens and channel more capital to businesses. (5-6)  By promoting cross-border fund offerings, reducing operational barriers, and fostering alternative investment products, the SIU aims at opening avenues for wealth managers to offer more diversified portfolios. (5-6) 

The revised ELTIF 2.0 framework has similarly expanded retail access to long-term investments, with 40 of 51 fund launches now targeting retail clients, compared to 18 of 32 previously. (7) Wealth managers can leverage ELTIF 2.0 to offer products spanning private equity, private credit, and infrastructure, providing clients with access to assets previously restricted to institutional investors. (7-8) 

Fund domiciliation also plays a strategic role. While Luxembourg remains the dominant choice, Ireland’s fast-track approval process—allowing fund registration in 24 hours compared to up to six months in Luxembourg—offers operational flexibility that could be decisive for managers launching new products. (9) 

Tokenization is another frontier reshaping investment possibilities. By allowing fractional ownership and enhancing liquidity, tokenized funds can democratize access to private markets. With emerging regulatory clarity on digital assets and stablecoins, European wealth managers are increasingly well-positioned to experiment with tokenized investment vehicles, potentially opening new channels for client engagement. (10) 

 

Talent and workforce transformation: A New Playbook 

As product complexity and technological innovation rise, European wealth managers are redefining the capabilities required for success. Beyond traditional investment expertise, firms increasingly value digital fluency, cross-disciplinary thinking, and the ability to translate complex products into client outcomes. 

The demand for product specialists in ETFs, interval funds, and semi-liquid alternatives is growing. Teams must combine technical investment knowledge with fundraising skills and client advisory capabilities, ensuring that wealth managers can guide clients through complex, hybrid portfolios. (11-12) 

Digital fluency is becoming indispensable. Generative AI and emerging agentic AI solutions are transforming advisory processes, automating research, portfolio analysis, and client communications. Professionals who can interpret AI outputs, integrate insights into client strategies, and communicate effectively across disciplines are increasingly valuable. (12 -13) Wealth managers that cultivate this hybrid skill set—investment expertise augmented by AI literacy—will be better equipped to navigate the complexities of 2026.

 

Scaling AI across European wealth management 

Artificial intelligence is no longer a curiosity—it is a strategic necessity. European firms are moving beyond pilot projects, using AI to enhance client engagement, streamline distribution, and support complex investment decisions. 

AI is being applied in diverse ways: automating compliance and reporting, optimizing portfolio construction, and providing advisors with tailored, actionable insights. (14-15) Gambit’s GenAI solution, while not providing regulated tasks, supports the advisor’s decision-making through real-time transcription and detection of client conversations, creation of to-do lists and summary, as well as automated follow-ups —helping advisors focus on strategy and human relationship rather than manual analysis. (16) 

Centralized AI governance is essential. To deploy AI at scale safely, European firms are creating centers of excellence with clear oversight, human-in-the-loop processes, and robust controls over data, risk, and compliance. (14-15) Firms that neglect governance risk fragmented solutions, inefficiency, and regulatory missteps. 

 

Strategic implications for 2026 

For European wealth managers, 2026 presents a moment to convert complexity into opportunity. Those who succeed will focus on three strategic imperatives: 

  1. Product Innovation – Research conducted by multiple bodies highlights the expansion of active ETF offerings, interval funds and ELTIF 2.0 structures, and experimentation with tokenized assets as an important trend for 2026 to enhance liquidity and accessibility. 

  2. Workforce Transformation – The importance of talent can’t be underestimated in times of change. Research points at investing in talent that blends investment expertise with digital fluency and AI translation, enabling teams to guide clients through increasingly complex portfolios. 

  3. AI Governance and Scaling – Companies are strongly encouraged to establish enterprise AI operating models with robust oversight, human-in-the-loop workflows, and a clear risk-management framework. 

  4. Strategic Partnerships – Collaboration with alternative managers and Fintech companies is crucial: to expand capabilities and capture opportunities from intergenerational wealth transfers, as well as to adapt the offering to the new “digital-first” generation. 

In 2026, firms that combine bold product strategies, capable talent, and disciplined AI adoption will gain a competitive edge. Incremental moves risk being outpaced by more agile competitors; the leaders will be those who can execute with both innovation and governance. 

 

Conclusion: 2026 is the year of transformation

Europe’s wealth management industry is entering an era of transformation. Regulatory clarity, technological advancement, and evolving investor preferences are creating opportunities for firms that can navigate complexity effectively. Fintechs that support wealth and asset managers in deploying innovative products, cultivating digital talent, and scaling AI responsibly will be pivotal partners in shaping the future of the industry. 

 

Sources: 

  1. Deloitte. (2025, November 20). 2026 investment management outlook. Deloitte Insights. https://www.deloitte.com/us/en/insights/industry/financial-services/financial-services-industry-outlooks/investment-management-industry-outlook.html  

  2. Investment Company Institute (ICI), 2025 Investment Management Company Fact Book, 2025; Deloitte Center for Financial Services analysis of ICI data. 

  3. Federico Cupelli and Vera Jotanovic, “The rise of active ETFs in Europe – A short review,” Industry Perspective 1 (April 2025), European Fund and Asset Management Association (EFAMA); EFAMA, Fact Book 2025, 23rd Edition, 2025.  

  4. Toledo, “Legal & General partnering with Blackstone for private credit.”  

  5. European Commission, “Savings and Investments Union,” accessed on August 21, 2025. 

  6. Eurostat, “Households – Statistics on financial assets and liabilities,” last updated October 28, 2024. 

  7. European Securities and Markets Authority (ESMA), ELTIF Public Register, (accessed August 17, 2025). 

  8. Keith Milne, “ELTIF 2.0 – A widening investment spectrum for retail and institutional investors,” Irish Funds Industry Association, May 14, 2025. 

  9. European Commission, “The Savings and Investments Union,” March 2025. 

  10. Urav Soni, Olivier Fines, and Jinming Sun, An Investment Perspective on Tokenization, CFA Institute, January 2025. 

  11. John Crabb, “AI is changing the investment process — and the job,” Institutional Investor, July 7, 2025. 

  12. Steven Rosenbush, “AI agents are learning how to collaborate. Companies need to work with them,” Wall Street Journal, May 3, 2025 

  13. Jim Rowan et al., State of Generative AI in the Enterprise: Quarter four report, Deloitte, January 2025. 

  14. Lara Abrash et al., “Governance of AI: A critical imperative for today’s boards,” Deloitte, October 7, 2024. 

  15. Snehal Waghulde et al., “Unlocking value: Ways gen AI can transform sales and marketing in investment management,” Deloitte, August 13, 2025. 

  16. Ceruti, M. (n.d.). Ai In Investment Management: Gambit financial solutions. AI in Investment Management | Gambit Financial Solutions. https://gambit-finance.com/artificial-intelligence-in-investment-advice  
Maria Ceruti
Maria Ceruti
Maria Ceruti joined Gambit Financial Solutions as a Product Marketing Specialist, where she played a pivotal role in building the company’s marketing ecosystem from the ground up. Her responsibilities spanned product positioning, communications, content strategy, and event coordination. She successfully integrated ESG narratives and compliance themes into the company’s messaging, enhancing Gambit’s visibility in both the financial and fintech sectors. Her contributions bridged product innovation with thought leadership, reinforcing the brand’s credibility and relevance.