Asset managers are striving to bridge the generational wealth gap by tackling the challenge of attracting younger investors to their services.
A recent webinar hosted by Invessed, featuring industry experts, illuminated the changing landscape of wealth management for the post-1965 generation.
Invessed's chief executive, Theo Paraskevopoulos, led a discussion highlighting a significant disconnect between younger generations and traditional wealth management services. Limited financial literacy, low savings rates, and a preference for self-management among younger investors characterise this gap.
The challenge now lies in striking a balance between the human touch of financial advice and the digital-first preferences of younger clients.
Paraskevopoulos emphasised three critical areas for wealth managers to address these challenges: awareness, complexity, and price. The industry must educate younger generations about the availability of professional advisors, simplify financial language, and harness digital technology to provide quality service at more accessible price points.
An innovative approach discussed was using the client portal as a "digital twin" in wealth management. Adapted from healthcare, this concept involves creating a digital replica of offline wealth management operations, ensuring all brand touchpoints are available in physical and digital realms.
As the wealth management industry evolves, firms like Invessed are pioneering efforts to bridge the gap between traditional financial advice and the needs of a new generation of investors. The challenge is balancing financial advice's human touch and younger clients' digital-first preferences.