Change is in the heir: Gen Y demands more from wealth advisors

Technological shortcomings and reluctance to change has created a sharp disconnect between the service provided by financial advisors and the evolving needs of their clients. 

With the impending retirement of the baby boomers, the wealth industry is facing its greatest opportunity - and perhaps greatest challenge - as retiring generations pass on their lifetime-accumulated assets to their heirs.

According to Accenture, Generations X and Y will stand to inherit $US30 trillion in assets in the coming decades – considered the largest intergenerational wealth transfer in history. In Australia alone, family bequests will increase from $22 billion in 2010 to $85 billion by 2030.

To learn more about the generational challenges facing today’s financial management organisations and how companies can leverage technological innovations to enrich the client-advisor relationship, fill out the form below to download this complimentary whitepaper.

Outmoded paper-based processes and an underdeveloped service model could see many financial advisors miss out on the opportunities offered by the ‘greatest wealth transfer in history’.

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Research by PwC has revealed asset attrition rates of more than 50 per cent in intergenerational wealth transfers, suggesting surviving heirs are no longer working with the family’s existing financial advisors and this mistrust has seen the number of active financial planning clients plunge by one-fifth over the four years following the GFC. Advisors can no longer expect clients to simply ‘stick with the devil they know’.

According to the 2014 Investment Trends Report, 1.9 million Australian adults intend to look for a (new) financial planner over the subsequent two years. Financial advisors need to address the unique concerns and challenges of this next generation of investor and realign their service delivery models to meet evolving consumer habits. 

Australians are recognised as one the most connected people on the planet. Today, the average Australian owns five separate devices, with smartphone penetration rates exceeding 75 per cent. Australia’s social media audience has ballooned to over 9.9 million individuals, with 40 per cent of those interacting with businesses on social networking sites. With digital communication increasingly regarded as the norm, fewer Generation Xs and Ys see the value of face-to-face interactions – a fact that eludes many traditional finance advisory organisations. 

Wealth managers must take their time to consider the unique circumstances, financial pressures, and ambitions of each client. Agile entrants to the wealth management market have been quick to tap into the demands of the impending ‘heir’ generation and use innovative, internet-driven offerings to meet the demands of the connected customer.

To effectively respond to these challenges, the Financial Services Council encourages Australian wealth management organisations to increase their digital intelligence and implement a customer-centric business model that can effectively meet the needs of their clients. 

According to a 2012 Investment Trends study, only six per cent of surveyed participants supported the traditional model of advice delivery, with 43 per cent desiring a shift away from the comprehensive, face-to-face, regular review model of advice delivery. Today’s digital-savvy customers leverage ‘smart’ technologies and social platforms to effortlessly compare prices, research financial products, and connect with others to their share experiences.

In failing to utilise this type of communication, financial advisors risk losing their relevance to younger investors and will ultimately surrender market share to more small-scale advisory upstarts that offer their clients a more connected, customer-centric and holistic experience.

To learn more about the generational challenges facing today’s financial management organisations and how companies can leverage technological innovations to enrich the client-advisor relationship, fill out the form below to download this complimentary whitepaper.

Connecting with the Connected

Australians are recognised as one the most connected people on the planet. Today, the average Australian owns five separate devices, with smartphone penetration rates exceeding 75 per cent. Australia’s social media audience has ballooned to over 9.9 million individuals, with 40 per cent of those interacting with businesses on social networking sites. With digital communication increasingly regarded as the norm, fewer Generation Xs and Ys see the value of face-to-face interactions – a fact that eludes many traditional finance advisory organisations. 
Wealth managers must take their time to consider the unique circumstances, financial pressures, and ambitions of each client. Agile entrants to the wealth management market have been quick to tap into the demands of the impending ‘heir’ generation and use innovative, internet-driven offerings to meet the demands of the connected customer. 
To effectively respond to these challenges, the Financial Services Council encourages Australian wealth management organisations to increase their digital intelligence and implement a customer-centric business model that can effectively meet the needs of their clients. 

It is no longer enough for finance advisory organisations to simply meet minimum technology regulations. To effectively and proactively engage with the next generation of clients, financial advisors must take active steps to utilise new mobile, social and other emerging technology platforms.

To learn more about the generational challenges facing today’s financial management organisations and how companies can leverage technological innovations to enrich the client-advisor relationship, fill out the form below to download this complimentary whitepaper.