EY’s Jens Schmidt on why human advice will matter even more by 2030
Private banking is entering a period of structural change. Digital tools are becoming standard, the generational transfer of wealth is accelerating, and clients are preparing to switch providers at an unprecedented rate. Yet despite the momentum around technology and the pressure to scale, EY Partner Jens Schmidt argues that the defining factor for competitive advantage remains human. The firms that succeed will be those that continue to invest in relationships.
Speaking at Investment Officer’s 13 November Boardroom event in Luxembourg, Schmidt is clear about what the next five years will look like. “Digital capabilities will be important, but I do not think it is everything,” he said. By 2030, standard investment services will be fully commoditized. The point of differentiation will not be tools or channels. It will be trust and personalized advice.
Technology reshapes delivery, not the core value
Schmidt’s assessment comes against the backdrop of EY’s 2025 Global Wealth Research Report, which shows that nearly one third of wealth clients expect to change provider by the end of the decade. The drivers include digital expectations, demand for transparency, and pressure for access to private assets. Yet Schmidt underlined that technology is an enabler rather than a replacement for advisory quality.
In his view, digital platforms will become the baseline for client interaction, but they cannot replicate what private banking fundamentally sells: the relationship between client and adviser. “The ability to build deep relationships and provide tailored, value-added services is still what is going to move the needle in this industry,” he said.
This sets a clear framework for strategic investment. Technology must support efficiency, compliance and scalability, but the client relationship remains the anchor. As Schmidt puts it, “standard investment services will be a commodity by 2030.”
The talent question becomes existential
Schmidt’s analysis also highlights the constraints facing Luxembourg. If personal relationships are the core value proposition, the availability of qualified advisers becomes a critical success factor. “The biggest threat to Luxembourg in particular is the talent pool,” he said, pointing to the country’s high cost of living and the structural cost of doing business.
For Schmidt, the solution lies in rebuilding operating models so that more resources can flow back into the front office. This means moving beyond the heavy regulatory focus of the past decade and designing platforms that enable what he calls “efficient platforms for compliant growth.” In practice, this frees up capacity to hire and retain the relationship managers and specialists who will define client loyalty.
Luxembourg’s strengths can support a relationship driven model
Even as talent pressures persist, Schmidt sees Luxembourg as uniquely well suited to evolve the relationship model. Its size, he argues, allows for rapid testing of new services and advisory approaches. Its workforce is international and multilingual. And its regulator remains accessible, especially on topics involving technology or innovation.
“Luxembourg is still the best place to try out certain ideas,” he said, noting that the CSSF’s innovation lab provides a space where firms can “talk, test ideas and get feedback by a regulator.” This, he believes, is not available in all major wealth hubs.
The international composition of the client base further reinforces this advantage. Luxembourg’s private banking business is driven primarily by clients in Germany, France and Belgium, alongside growing interest from Asia. For Schmidt, the country’s geopolitical neutrality enhances its attractiveness. It supports a model where clients expect global investment capabilities but also value stability and personal trust.
Human advice is the strategy
Schmidt’s central argument is analytical rather than nostalgic. As wealth managers scale their platforms and integrate AI, they risk assuming that digital transformation will carry the business forward. His view is more grounded. Digital proficiency is necessary, but insufficient. Advisory quality determines whether clients stay or leave.
The relationship manager, in other words, becomes the strategy. Luxembourg, with its international reach and culture of experimentation, is well placed to show what that strategy looks like in practice. But executing it requires investment in people, not just systems.
Schmidt’s conclusion is straightforward. Technology will continue to accelerate. Regulations will continue to evolve. Products will become more accessible. Yet the core value of private banking rests where it always has. “The human in the loop will play a much more important role,” he said. “That is what will differentiate.”
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