What Millennials Want From Their Wealth Management Firm



What Millennials Want From Their Wealth Management Firm

Quartz | Tiffany Ap | Jun 16, 2022

Millennial investors the next generation - What Millennials Want From Their Wealth Management FirmOver the next few decades, around $30 trillion in wealth is expected to be passed down from Baby Boomers to millennials. 

  • A survey from Capgemini Research Institute found that they’re going to be pickier customers for wealth management firms than their parents and grandparents.
  • Surveyed nearly 3,000 high net worth individuals (HNWI), defined as people with investable assets of $1 million or more and found that millennials coming into wealth are far more price-sensitive than the previous generation, especially in a bear market.
  • A majority of them are switching advisors to find a better fit compared to what may have worked for older investors.
  • Millennials prefer a hybrid model for advisory services and information. The pandemic caused HNWIs to reduce dependency on wealth managers and become more actively involved in investing, spurring demand for self-directed tools.

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  • The millennial “freemium” mindset” that has developed over the last 10 years is another factor.
    • Younger HNWIs are less willing to pay for straightforward access because they expect that for free in exchange for data or deposits.
    • About half of millennials surveyed said they had changed their primary wealth management firm in the past year, with high fees and lack of digital expertise among the top reasons.
  • Over 70% of high net worth individuals have invested in digital assets, and for those under the age of 40, that number rose to 91%.

In two generations, women will hold 70% of global wealth

Wealth asset management firms should also plan for another big change in the investor pool: the growing importance of women.

  • Women will manage two-thirds of household wealth by 2030, and increase their share of global wealth from about half to 70% within two generations, according to the Royal Bank of Canada.
  • Much of the fortunes of men who pass away will end up in the control of female spouses who tend to be both younger and live longer, according to an analysis by consulting firm McKinsey

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Capgemini’s Ghanem:

“Women are working more, they are highly educated, more engaged, more visible and vocal, when women were previously behind the scenes. What was there, but not mentioned, is becoming quantified. It’s the positive consequence of many years of pushing women to be at the front.”

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