WealthTech in 2026: Technology Decisions Will Define Winners and Losers in Wealth Management

Wealth management enters a pivotal phase in 2026, where strategic technology investments will determine long-term competitiveness. F2 Strategy’s latest outlook, based on 2025 surveys of executives from 85 RIAs, hybrid firms, broker-dealers, and asset managers managing over $61 trillion in assets, highlights stark contrasts in adoption across critical areas: alternatives oversight, artificial intelligence integration, custody infrastructure, and client acquisition systems.

F2 Strategy co-founder and executive chairman Doug Fritz warns: Amid potential market turbulence and economic pressures, firms with robust, forward-thinking tech foundations will stand out, while others risk operational inefficiencies and lost market share.

Rising Allocations to Alternatives Demand Better Tech Oversight

Alternative investments have surged, with average allocations growing from $7.5 billion per firm in 2022 to $12 billion by 2025. This expansion introduces heightened complexity, especially as alternatives penetrate retirement accounts and illiquid holdings increase.

Yet progress lags: Only half of surveyed firms employ dedicated third-party platforms for tracking and reporting these assets. Manual processes persist for many, amplifying risks around valuation accuracy, compliance, and client transparency.

F2 emphasizes automation’s role in handling illiquid positions, ownership verification, and streamlined reporting. Emerging blockchain and distributed ledger advancements promise reduced costs and enhanced data clarity, intensifying pressure on firms to modernize before liquidity constraints or regulatory shifts create bottlenecks.

AI Adoption Accelerates, But Execution Gaps Persist

AI usage has skyrocketed, jumping from 51% of firms in 2023 to 74% in 2025—a 23-point leap in just two years. Adopters report tangible benefits: reduced operational errors (like not-in-good-order issues), faster client meeting preparation, cost efficiencies, and freed-up advisor bandwidth for advisory priorities.

However, efficiency gains alone won’t drive top-line growth. F2 stresses that 2026 leaders must channel AI-liberated capacity into deliberate, structured prospecting and organic expansion initiatives—rather than expecting spontaneous business development.

A notable divide exists between firm types: 95% of RIAs leverage AI, versus just 23% of bank trust operations. This technological disparity creates materially different client experiences and backend productivity. Banks that fail to bridge the gap could see their wealth franchises lose appeal and sustainability against nimbler RIA competitors.

Custody Choices Evolve from Relationships to Efficiency Metrics

Custody increasingly functions as a technology and operations decision rather than purely relational. Two-thirds of wealth firms maintain multiple custodians, often to accommodate client preferences and avoid disruptive asset transfers or repapering.

This approach adds layers of expense and intricacy—integrating varied data feeds, reconciling disparate systems, managing multiple transaction flows, and synchronizing CRM processes. As some larger RIAs reach scale where self-clearing becomes viable, F2 urges reevaluation of single-custody benefits versus the flexibility of multi-custody setups in 2026.

Organic Growth Remains Underdeveloped Despite Tech Potential

Client acquisition stands out as a weak link. Most firms lack sophisticated marketing operations, clear metrics for new business drivers, or resolved centralization debates (home office vs. advisor-led).

F2 anticipates a shift toward centralized marketing frameworks in the coming year—equipping advisors with actionable data, standardized processes, and defined KPIs for lead generation and relationship nurturing.

Fritz highlights the broader implication: Sustainable success requires wider technology embrace to handle escalating alternative allocations and fuel internal growth engines. Overreliance on mergers and acquisitions for expansion won’t suffice long-term.

As economic conditions test resilience, 2026 will reveal which wealth management organizations have turned technology into a true strategic advantage—delivering superior efficiency, client outcomes, and scalable growth.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.