Wealth in Waiting: Securing Tomorrow’s Customers Today

OVERVIEW

Gen Z customers remain critically underserved by the wealth management industry. Those that are set to inherit wealth will be less likely than previous generations to feel affinity with their parents’ wealth managers; those that are yet to accumulate wealth are not visible to the industry. There is an opportunity to bridge the generation gap and secure future customers by offering personalised experiences that turn today’s spenders and debtors into tomorrow’s savers and investors. So what’s the secret?

Hearts and minds

Trust issues and a lack of connection with younger audiences remain pervasive in wealth. The expectations of the next generation have been framed by digital technology. They are financially self-taught to differing degrees and passionate about ethics and sustainability. How can wealth management respond to this throughout the journey, from product design to direct engagement?

Business model innovation 

Creating a connection with the not-yet-wealthy alongside scalable distribution requires a fundamental rethink of the wealth business model. Traditional IFAs and wealth managers are not incentivised to acquire lower value customers, since the mechanisms are not in place to profit from them. Newer models will need to follow a strategic focus on long-term customer value vs short term returns. What does innovation in this space look like?

Dedication to experience design

Wealth journeys that successfully attract Gen Z will be highly engaging, personalised digital experiences with the customer's own financial data at the core – complemented by human advisors, but in a scalable way that uses human time efficiently. The digital and human components will interweave seamlessly to create optimal trust, confidence and convenience for the customer. What do you need to do to design the right experiences and get ahead of the curve?