Wealth, Banking and Asset Management Firms Face a Scalability Challenge Despite Record Technology Investments, New Research Finds
The global wealth, banking and asset management (WBAM) industry is entering a new era of digital transformation, fueled by unprecedented investments in technology and operational modernization. Yet, despite billions of euros being allocated to innovation initiatives, many financial institutions continue to struggle with a fundamental challenge: achieving sustainable scalability.
New research conducted by Monitor Deloitte, a leading consultancy firm, in partnership with Objectway, a technology and growth partner specializing in financial services, reveals a striking contradiction at the heart of the industry. While WBAM organizations are increasing technology and operations spending at record levels, only a small percentage have successfully built operating models capable of supporting long-term growth without significantly increasing costs and complexity.
According to the report, global Technology and Operations (Tech&Ops) spending across wealth management, banking, and asset management firms currently stands at approximately €173 billion and is projected to rise to €243 billion by 2029. However, despite this substantial financial commitment, only about one-quarter of firms have achieved genuine front-to-back scalability.
The findings suggest that many organizations are spending heavily to manage complexity rather than eliminating it, creating an expensive and increasingly unsustainable operating environment.
The Growing Complexity Burden
The financial services sector has undergone dramatic changes over the past decade. Institutions are expected to deliver highly personalized client experiences, navigate evolving regulatory requirements, manage cross-border operations, and adopt emerging technologies—all while maintaining profitability and operational resilience.
These pressures have created a perfect storm of structural complexity.
Client expectations continue to rise as consumers increasingly demand seamless digital experiences comparable to those offered by leading technology companies. At the same time, regulators across global markets are introducing new compliance standards aimed at improving transparency, consumer protection, cybersecurity, and risk management.
Cross-border business operations add another layer of complexity, as firms must comply with varying legal and regulatory frameworks in different jurisdictions. Together, these forces are placing unprecedented strain on legacy operating models that were never designed to support such rapid and continuous change.
Instead of fundamentally redesigning their operating structures, many firms have responded by adding more resources, processes, and technology layers. While these measures may temporarily address operational challenges, they often increase costs and create additional complexity over time.
The result is an environment where growth becomes increasingly expensive.
Legacy Technology Creates a Scalability Ceiling
One of the most significant obstacles identified in the research is the continued reliance on legacy technology infrastructure.
Many financial institutions operate with a patchwork of systems accumulated over decades. These environments often contain multiple platforms, customized applications, and disconnected databases that require ongoing maintenance and integration efforts.
Such legacy ecosystems create what researchers describe as an “invisible scalability ceiling.” While organizations continue investing in new technologies, underlying infrastructure limitations prevent them from realizing the full benefits of those investments.
The challenge is compounded by growing technical debt. As firms continue adding new solutions on top of outdated systems, operational complexity increases and future modernization becomes more difficult and expensive.
According to the report, internal personnel and proprietary infrastructure still account for approximately half of all technology spending across the industry. These fixed costs remain difficult to reduce, limiting organizational flexibility and constraining innovation initiatives.
Additionally, regulatory requirements continue to consume a substantial portion of technology budgets. As compliance frameworks evolve, firms must allocate significant resources to ensure systems remain aligned with regulatory expectations, leaving fewer resources available for transformational initiatives.
Managing Complexity Rather Than Solving It
The research paints a clear picture: many institutions have become adept at managing complexity but have not addressed its root causes.
As organizations grow, they often add staff, introduce new software applications, establish additional control functions, and expand governance structures. While these actions may support short-term objectives, they can also create operational inefficiencies that become increasingly difficult to manage.
Monitor Deloitte’s findings suggest that this approach is becoming financially unsustainable.
Industry leaders now recognize that simply spending more on technology is unlikely to produce meaningful improvements in scalability. Instead, organizations must rethink how technology and operational capabilities are sourced, delivered, and managed.
This realization is driving a significant shift toward as-a-service operating models.
The Rise of As-a-Service Strategies
One of the most notable trends highlighted in the report is the growing adoption of as-a-service models throughout the WBAM sector.
Over the past several years, the share of technology spending allocated to as-a-service solutions has increased by approximately 10 percentage points. This trend is expected to accelerate further as organizations seek greater flexibility, efficiency, and scalability.
As-a-service models encompass various approaches, including Hybrid Software-as-a-Service (SaaS), Pure SaaS, and integrated SaaS combined with Business Process as a Service (BPaaS) offerings.
Unlike traditional technology deployments that require substantial upfront investments and extensive customization, these models provide access to standardized, modular platforms delivered through external service providers.
The advantages are significant.
Organizations can reduce internal complexity by outsourcing non-core operational functions to specialized partners. They gain access to configurable technology platforms without the need for costly custom development projects. They can also tap into specialized expertise and talent pools that may be difficult or expensive to build internally.
Another major benefit is financial flexibility. Rather than committing large amounts of capital upfront, firms can adopt consumption-based pricing models that align costs more closely with business outcomes.
As-a-service approaches therefore offer a pathway to achieving scalability while reducing operational burdens.
Why Sourcing Strategy Matters More Than Technology Alone
The report emphasizes that technology investment by itself does not guarantee success.
Instead, the most important differentiator is how firms source, orchestrate, and deliver their technology and operational capabilities.
Organizations that achieve scalable growth typically focus on creating integrated ecosystems where technology providers, service partners, and internal teams work together within a coordinated framework.
This ecosystem-driven approach allows firms to concentrate on their core strengths while leveraging external expertise for specialized functions.
Researchers expect the number of organizations using as-a-service models as their primary delivery framework to increase dramatically over the next two to three years. In fact, adoption rates could triple during this period as executives increasingly view these models as strategic solutions rather than purely technological alternatives.
Importantly, as-a-service strategies are also emerging as critical enablers of artificial intelligence adoption.
Artificial Intelligence Moves to Center Stage
Artificial intelligence is rapidly becoming one of the most transformative forces in financial services.
Global AI investments reached approximately €50 billion in 2025 and are projected to grow at an annual rate of around 28 percent through 2033. Financial institutions are increasingly moving beyond pilot programs and experimenting with enterprise-wide AI implementations.
The potential benefits are substantial.
Industry estimates suggest that up to 70 percent of operational processes across wealth management, banking, and asset management organizations could benefit from AI and generative AI technologies.
Applications range from client onboarding and compliance monitoring to portfolio management, customer service, fraud detection, and operational automation.
However, the transition from experimentation to industrial-scale deployment presents significant challenges.
One of the most pressing concerns is governance.
Approximately 85 percent of firms are currently developing dedicated AI governance frameworks designed to ensure responsible implementation, regulatory compliance, transparency, and risk management.
Without proper governance structures, organizations risk introducing new vulnerabilities even as they seek operational efficiencies.
The Emergence of Agentic AI
The report also identifies the growing importance of agentic AI, which refers to intelligent systems capable of performing tasks autonomously, making decisions, and interacting with other systems with limited human intervention.
Deployment of agentic AI solutions is expected to increase by more than 2.3 times within the next twelve months, signaling a major shift toward enterprise-scale automation.
Rather than simply providing recommendations or generating content, these intelligent agents can orchestrate workflows, execute business processes, and coordinate activities across multiple systems.
Industry experts believe this technology could significantly accelerate productivity gains and operational transformation.
However, successful implementation requires more than deploying AI tools on top of existing infrastructure.
Organizations must redesign workflows and operating models around desired business outcomes, ensuring that AI capabilities are integrated into broader transformation strategies rather than treated as isolated technology initiatives.
Four Critical Actions for CEOs
The research concludes with a strong message for executive leaders.
Achieving scalability in today’s environment requires more than purchasing new technology solutions. It demands a comprehensive transformation of operating models, governance structures, and organizational culture.
The report outlines four key priorities for CEOs and senior leadership teams.
First, organizations need strong executive sponsorship that aligns business and technology objectives around a shared transformation vision.
Second, firms must invest in disciplined change management programs capable of guiding employees and stakeholders through large-scale organizational shifts.
Third, leadership teams should redesign operating models through an AI-first lens, ensuring workflows fully leverage automation, intelligence, and as-a-service capabilities.
Finally, institutions must cultivate carefully selected ecosystems of strategic partners supported by robust governance frameworks that ensure accountability, performance, and alignment with business objectives.
A New Definition of Competitive Advantage
The study ultimately suggests that the future winners in wealth management, banking, and asset management will not necessarily be the organizations spending the most on technology.
Instead, success will belong to those capable of simplifying complexity, modernizing operating models, leveraging strategic partnerships, and embedding AI into scalable business processes.
As technology spending approaches €243 billion globally by 2029, the industry’s challenge is no longer whether to invest in innovation. The real question is whether firms can transform those investments into sustainable growth.
Those that successfully embrace as-a-service strategies, modern governance frameworks, and AI-driven operating models may finally overcome the scalability barriers that have constrained the industry for years. Those that continue layering new technologies onto outdated structures risk finding themselves trapped in an increasingly expensive cycle of complexity management.
The message from the research is clear: scalability is no longer primarily a technology issue—it is an operating model challenge. And solving it will define the next generation of leaders in the global financial services industry.
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