Banks and other financial institutions are increasingly looking to external providers to upgrade their wealth management and brokerage services, as legacy technology and rising competition complicate efforts to modernise, according to a study commissioned by Saxo.
Half of 332 senior decision-makers surveyed across Europe, the Middle East and North Africa (MENA), and Asia-Pacific (APAC) favoured a hybrid operating model that combines in-house expertise with a single long-term outsourcing partner, the study found.
The findings point to a gap between institutions’ digital ambitions and their ability to deliver.
Only 28% of respondents rated their wealth management and brokerage capabilities as advanced, while 43% described them as fairly advanced, indicating that some personalisation and digital integration were in place but that transformation remained incomplete.
Ageing technology infrastructure is one of the main obstacles. Respondents said their core wealth and brokerage technology was 6.7 years old on average, rising to 7.5 years at institutions that managed these capabilities entirely in-house.
Although 75% of respondents believed banks were well equipped to deliver digital wealth and brokerage services, 79% said financial institutions were launching new offerings without having all the capabilities needed to support them.
The research also highlighted intensifying competition from technology-driven financial services.
AI-powered robo-advisers and automated investment services were identified as the biggest competitive threat by 48% of respondents, followed by large technology companies expanding into financial services at 43% and neo-brokers offering low-cost or commission-free trading at 36%.
The findings suggest that institutions face pressure not just to introduce new digital services but also to ensure their technology and operational capabilities can support them as client expectations evolve.
“Banks are operating in an environment where both the opportunity and the pressure have never been greater,” said Henrik Alsøe, global head of institutional at Saxo Bank.
He added that advances in artificial intelligence were raising the bar for financial institutions seeking to remain competitive.
The challenge was increasingly about modernising quickly enough, rather than simply recognising the need for change, Alsøe said, adding that strategic partnerships could help institutions innovate, expand their offerings, and respond to changing client needs.
The study was commissioned by Saxo and conducted by market research consultancy Savanta during the summer of 2026.
It surveyed 332 senior decision-makers from commercial and investment banks, private banks, brokers, fintech companies and challenger banks across Europe, MENA and APAC, supplemented by 18 in-depth interviews with industry leaders.
Copenhagen-based Saxo provides multi-asset trading and investment services to retail and institutional clients. The company said its open banking technology supports more than 150 financial institutional partners.