T
he global wealth management market is poised for significant growth through 2030, driven by the increasing demand for holistic wealth management services from millennials. According to JLL's 2024 Wealth Management Branch Benchmarking Survey, financial services firms are transforming their physical spaces to meet the evolving needs of this younger generation.

    Millennials are expected to inherit an estimated $84 trillion+ in assets from baby boomers by 2045 and prefer to work with investment professionals who can provide a comprehensive view of their financial needs. This includes investments, life insurance, banking, and taxes. As a result, firms are investing in modernizing their branches to provide a superior experience that appeals to tech-savvy, sustainability-aware clients.

    The use of technology, artificial intelligence (AI), and automation is also allowing wealth managers to optimize routine tasks and focus on higher-level strategy and client engagement. This shift is transforming wealth management centers into hybrid environments that blend digital and in-person experiences, impacting how firms use their real estate.

    Financial services firms are expanding into new global and suburban markets, rethinking design and space usage, and contending with rising costs associated with rebranding and modernizing. The traditional investor profile is changing, with younger investors willing to take on more risk and seeking to consolidate their wealth and banking relationships.

    As the wealth management landscape continues to evolve, firms are recognizing that their physical spaces play a crucial role in meeting the evolving needs of clients and aligning with broader business goals. Companies are investing in modernizing their branches to provide a superior experience that appeals to a new generation of clients.

    Wealth management branches are following the customer, with 36% of firms planning to increase their number of locations by up to 10% over the next five years. The No. 1 driver influencing location strategy is proximity to a new client base (79%). Firms are also expanding into major global CBDs and suburban markets, with 43% having already expanded their presence in suburban, non-core locations.

    The research highlights a growing trend of expansion into Asia-Pacific (APAC) region, where wealth creation is accelerating significantly. By 2028, APAC is expected to contribute 29% of new financial wealth globally. Global financial hubs like Singapore, Hong Kong, and New York are experiencing growing demand for wealth management services, leading firms to invest in flagship centers.

    The pressure to differentiate within the wealth management space is intensifying, with experts predicting 16% of wealth management firms will be acquired or exit the market by 2027. Curating a first-class experience for clients and potential clients is vital for survival, and the physical space plays a key role. Many new spaces are highly amenitized with hospitality-driven elements such as lounges, wellness rooms, butler services, and multi-function and flex-work offerings.

    To provide a premium experience, firms are redesigning their wealth management branches to appeal to a younger clientele. The future wealth management space should deliver a modernized aesthetic with premium materials like leather, marble, and natural stone while incorporating ESG principles, wellbeing, and circularity into design.

    However, the rising cost of curating a first-class experience for wealth management clients is becoming a challenge. Inflation and supply chain disruptions have pushed up build costs for redesigning or constructing new wealth management centers. 64% of North American respondents reported substantial increases in build costs over the past two years, with some experiencing hikes of up to 20%.