Private banking’s fastest-growing segment is in the $1 million to $5 million range. Serving them requires a new business model.
The dynamics of global wealth growth are shifting, and with them, the economics and operating models of many of the world’s private banks.
The data couldn’t be clearer; the fastest-expanding pool of new clients for wealth management is in the $1 million to $5 million band. That’s big enough to demand sophisticated advice, but not rich enough to subsidize the cost base of the traditional private bank. The number of “everyday millionaires” has more than quadrupled since 2000, to around 52 million people globally at the end of 2024, with roughly $107 trillion in total wealth, according to research by UBS.
And the runway looks long. According to recent forecasts from market intelligence firm Altrata, the $1 million to $5 million tier of investable wealth will grow by roughly 47% in total numbers by 2030 while the group’s collective investable-asset base will increase by 45%.
“We see significant potential in the emerging affluent and high-net-worth segments, especially as wealth transfers accelerate globally,” says David Frame, CEO of J.P. Morgan’s Global Private Bank.
The leap in the everyday millionaire category is especially significant given that the traditional private banking industry faces difficulties scaling organic client growth.
In 2024, global asset and wealth managers saw roughly 70% of growth in assets under management driven by market performance and only about 30% by net new money, according to a recent McKinsey industry report. Longer term, the trend is similar. Only about 28% of total AUM growth over the past decade represented organic growth generated by existing advisors; the rest came from a mix of market performance, mergers and acquisitions, and advisor hiring, according to a report from Boston Consulting Group. In mature markets such as North America and Europe, the organic share fell to some 22%.
Figuring Out The Margins Game
While banks recognize that serving clients earlier in their wealth journey can widen the funnel for long-term relationships—arguably the industry’s bread and butter—doing so profitably often requires a different business model: one that can deliver a private banking experience with industrial-grade scalability rather than bespoke craftsmanship.
The emerging high-net-worth (HNW) segment is shaped less by “wealth” as a label and more by how clients want to engage with their bank, says Leandro Karam, global head of Bradesco Global Private Bank.
Clients in this tier “seek proximity and guidance while maintaining a high degree of autonomy,” he notes. “They value a more educational and personalized journey, with recommendations built around life goals, medium- and long-term planning, and relevant life events rather than generic approaches based solely on risk profiles.”
Catering to the $1 million to $5 million tier often implies a shift in demographic profile, according to Racquel Oden, US head of Wealth and Premier Banking at HSBC.
“For first-generation wealth creators such as entrepreneurs and professionals, the emphasis is often on growth,” she says. “In contrast, an older entrepreneur’s focus may be more on succession planning and preserving their wealth for the next generation.
“Nevertheless, these young entrepreneurs have the same overall expectations as older, more established private banking clients. Their ultimate aim is the same: to protect, manage, and grow their wealth with a view to creating a legacy.”
More Than Economics
Meeting that aim comes as a challenge as clients continue to unbundle services across multiple providers.
EY’s 2025 Global Wealth Research Report found that 32% of clients plan to increase the number of wealth managers they work with over the next three years and 45% expect to move between a quarter and half of their assets to multiple institutions. PwC’s recent 2025 HNW investor research found that wealth-management relationships with these clients are “not as sticky as once believed,” as they divvy up their investments in search of a more tailored experience, broader access, and stronger digital capabilities.
In the $1 million to $5 million band, where clients are highly fee-sensitive and digitally self-directed, the same menu approach often manifests as best-of-breed shopping, making the business crowded and more modular.
“The develop-and-graduate model is in many ways broken,” says Wally Okby, strategic advisor, Wealth Management at Datos Insights, a research and advisory form for financial services providers.
Banks are responding with models designed to deliver high-touch outcomes through standardized workflows, technology, and modular service packaging. “The business is moving toward something that looks more like a subscription model, where you pay for the services you use,” says George Walper, managing principal at market research firm CEG Insights.
To bridge the gap between scalability and excellence, several banks are stepping on the gas to build the necessary infrastructure, both human and technological.
HSBC, a global behemoth, recently opened flagship wealth centers in London targeting clients with up to £2 million (about $2.7 million) in assets, backed by dedicated relationship managers, concierge-style services, and physical advisory hubs designed specifically for this segment.
HSBC is also targeting emerging markets as part of its organic growth strategy, where it expects a significant portion of the tier’s growth to originate. In China, HSBC recently added roughly $3.6 billion in assets, and it reports strong inflows from Asia as it targets mass affluent and HNW clients in fast-growing cities. In India, the bank has obtained approval to open branches in 20 additional cities, specifically to serve a rising affluent population.
Deutsche Bank has announced plans to recruit some 250 wealth managers globally and allocate roughly €300 million to talent and technology in its wealth division, reflecting a broader industry shift toward scalable advisory models. J.P. Morgan’s recent acquisition of First Republic is a step in the same direction.
“The First Republic integration strengthens our ability to serve [HNW clients] with a differentiated offering that combines personalized service and scale,” says Frame.
In Brazil, Bradesco is going a step further by establishing a distinct rung between Prime, its retail offering, and Private Banking, with explicit eligibility for high-income clients whose assets place them beyond mass retail but not in the ultra-high-touch private-bank category.
To scale the segment, Bradesco is building a dedicated distribution layer and setting measurable milestones for footprint and client growth. In investor materials, the bank says it intended to end 2025 with 60 physical locations supporting principal and up to 110 by end-2026, including a mix of new sites and the conversion of existing branches.
AI With A Human Touch
Competing in the new HNW tier requires a massive commitment to tech spending, particularly in AI. In an industry driven by value and bank-to-client trust, however, that offering should enhance the traditional advisor model rather than replace it, close observers say.
“With technology, firms can create the services, but they really need to make a commitment and focus on what wealthy people want, regardless of the tier,” CEG Insights’ Walper stresses.
“AI should assist, not replace, advisor judgment by handling data-intensive, repeatable tasks,” agrees HSBC’s Oden. “Private banking will always be a relationship-led business.”
Among wealth management firms surveyed, 49% currently use AI in some areas and 73% plan to increase adoption at the enterprise level within the next one to two years, Capgemini reports. The implication is not that AI “does” advice, but that it industrializes the preparation, prioritization, and monitoring that make advice consistent.
“AI and automation help us cut out complexity, reduce errors, and free up our advisors to spend more time with clients,” is how Frame describes the payoff. He also puts numbers behind the technology commitment, noting that J.P. Morgan has built a team of 63,000 technologists and combines internal development with targeted acquisitions to accelerate capabilities.
Bradesco’s Karam described AI’s role similarly, but with an emphasis on advisor control.
“AI operates as a digital assistant integrated into the daily workflows of bankers and advisors,” he says, organizing contact information, prioritizing opportunities, and supporting decision-making “without replacing the professional’s central role.”
