Wealth management firms may be heading into a make-or-break period on technology, according to a new outlook from F2 Strategy that points to sharp divergences in how firms are using tools for alternatives, AI, custody and growth.
The consultancy drew from its 2025 polling of CTOs, COOs and CEOs at 85 RIAs, wealth managers, broker-dealers, and asset managers overseeing more than $61 trillion in assets to map out where firms are investing and where they are falling behind.
“Under the backdrop of economic uncertainty, we’ll reach a moment when it becomes clear who built great technology. Market volatility will showcase those who’ve done it right,” predicted F2 Strategy co-founder and executive chairman Doug Fritz.
Alternative investments are one of the clearest stress tests. F2 reports that average allocations to alternatives climbed from $7.5 billion in 2022 to $12 billion in 2025, opening the door to more complex portfolios and greater operational risk. At the same time, only 50% of firms say they use a third-party system to oversee those assets, even as alternatives expand into the retirement space.
The report argues that firms should be using technology to automate processes around illiquid positions and streamline ownership and reporting, while acknowledging that technology alone cannot accelerate liquidity events. As blockchain and distributed ledger tools mature, F2 expects further pressure on costs and more transparent data flows in this corner of the market.
AI is another bright line. The share of firms using AI climbed 23 percentage points in two years, from 51% in 2023 to 74% last year. Those that have adopted the tools say they are already seeing cost savings, fewer not-in-good-order errors, better prep for client meetings, and more time for higher-value work. But F2 cautions that time savings don’t automatically translate into revenue. The firm argues that in 2026, leadership teams will need to point AI-enabled capacity at structured, organic growth efforts rather than assuming advisors will suddenly start prospecting on their own.
The gap between RIAs and banks is especially stark. F2’s research found just 23% of bank trust operations are using AI, compared with 95% of RIAs. The report notes that while investors may not distinguish between an advisor at a bank and one at an RIA, the underlying technology stacks and operations are “dramatically different.” RIAs, having embraced AI and other advanced tools more quickly, are positioned to deliver smoother client experiences and more efficient back offices. If bank-based wealth firms cannot close that technology gap, F2 warns they risk undermining the marketability and long-term viability of their franchises.
Custody decisions are also emerging as a tech and efficiency issue, not just a relationship call. Two-thirds of wealth firms rely on multiple custodians, in part because advisors perceive repapering and moving assets as too disruptive for clients. Instead of consolidating, many firms simply add new custodians to match client preferences, even as some RIAs scale to sizes where self-clearing would be a plausible alternative. According to the report, that multi-custody stance layers on costs and complexity, from unifying data and integrating disparate tech stacks to maintaining multiple transaction pipelines and CRM workflows. F2 says firms should take a hard look in 2026 at the true tradeoffs between multi-custody and single-custody approaches.
Organic growth may be the softest spot in the industry’s current setup. F2 finds that most wealth managers still lack a mature marketing function and have not clearly defined or measured the drivers of new business. Many are stuck in debates over centralized versus decentralized growth – what sits with the home office versus the individual advisor – rather than building out shared systems. Over the next year, F2 expects more firms to move toward centralized marketing models that give advisors data, structure and clear KPIs around prospecting and client development.
“For our industry to be successful, we need to see broader adoption of technology to manage the growing alternative investments allocations and to power marketing engines because far too many firms are relying heavily on M&A to grow,” Fritz said.
Elsewhere, Feathery touts efficiency gains for custodian account opening at Sequoia, while DeepVest unveils a governance layer for CIOs to keep AI agents in check.
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