Wealthy investors turn to art as private banks lag on advisory services
Growing demand from European high-net-worth clients emphasises gap in wealth management expertise.
Wealthy investors across Europe are increasingly incorporating art into their investment portfolios, but private banks are finding it difficult to meet the rising demand for specialised advisory services.
Research from the Italian Private Banking Association (AIPB) indicates that although an increasing number of high-net-worth families are investing in art, only a small proportion of financial institutions presently offer comprehensive guidance on managing artistic assets. About one in five Italian private banking families already invests in art, a higher percentage than those investing in private equity or cryptoassets. Nearly a quarter of investors plan to increase their exposure, implying that cultural assets are becoming a more strategic element of wealth portfolios.
Despite this growing interest, the services provided by financial institutions remain fragmented. According to the study, 75% of Italian private banks offer artwork management tools, 63% provide valuation services, and 56% assist clients with buying and selling artworks. However, only 19% deliver a fully integrated art advisory service.
The gap between supply and demand is becoming more evident. While 30% of private banking clients expect dedicated support in managing their artistic patrimony, only 18% have so far used services designed to structure or enhance their collections. Industry experts say this reflects a wider challenge across Europe’s wealth management sector, where art advisory often remains peripheral to core banking services and is frequently managed by external specialists.
Diversification beyond traditional assets
The growing interest in art reflects a broader shift in how wealthy investors allocate their capital. As clients seek diversification and protection from market volatility, art and collectibles are increasingly considered alongside traditional alternatives such as private markets, real estate, and hedge funds.
The global art market was valued at approximately $57bn in 2025, although it remains highly concentrated. Only 0.85% of artists generate more than 76% of total auction revenue, while the top 1% of artworks — those sold for over $1m — account for roughly half of all transaction value. In contrast, works priced below £50,000 account for 94% of transactions but only 15% of market value, emphasising the dominance of high-end collectors and institutional buyers.
Auction results reveal a similar trend. In 2024, post-war and contemporary art accounted for 55% of auction sales, followed by modern art at 25%, with post-war works generating returns of 11.2% over the past 12 months.
New investment models emerge
Financial innovation is also transforming the art market. One emerging structure is the club deal, which allows groups of investors to acquire shares in high-value “blue-chip” artworks — typically pieces by internationally recognised 20th-century artists valued at more than €500,000.
These models aim to overcome some traditional barriers related to art investment, such as illiquidity, limited access, and information asymmetry. Digital technologies and tokenisation are also beginning to expand access to this asset class. Art’s historical performance has also attracted investor interest. The Artprice100 index has increased by over 620% from 2000 to 2024, indicating strong long-term value retention while showing relatively low correlation with conventional financial markets.
Collectables gain prominence in private wealth
Beyond art itself, collectables are becoming an increasingly important part of private wealth portfolios. The value of privately owned collectables rose by 18% in just two years, increasing from $2.17tn in 2022 to $2.56tn in 2024, and is expected to reach $3.47tn by 2030. Reflecting this shift, the share of investors who view collectables as a store of value has increased from 14% in 2023 to 25% in 2025.
Paintings remain the most widely held category, representing 27% of collections, followed by sculpture and digital art, each at 14%. Looking ahead, demand is expected to increase, with 48% of collectors planning to purchase paintings, 37% sculptures, and 23% digital works.
Succession planning becomes critical
Another challenge for collectors and wealth managers alike is succession. According to the research, eight in ten investors inherit their art collections, making the management of artistic assets an increasingly vital part of long-term wealth planning.
For European private banks, the increasing importance of art in client portfolios offers both a challenge and an opportunity. Organisations that succeed in merging financial expertise with art market knowledge may gain a competitive edge as demand for specialised advisory services continues to grow.
However, for now, the data indicates the industry is still in its early stages. Bridging the advisory gap — and more fully integrating art into wealth management strategies — could become a key differentiator in Europe’s private banking sector.