The transforming demographics of global wealth provide an exciting opportunity for financial services marketers ready to fully embrace change and capture a new wealth audience.
In Part 1 of Wealth of Opportunity we looked at how the ongoing generational transfer of wealth is set to impact businesses operating in this space. But age isn’t the only thing firms need to be thinking about when considering the needs of their future client base. In Part 2 we’re going to explore the impact of other factors, from the concentration of wealth in the hands of women to the impact of an increasingly entrepreneurial culture and the shift towards greater diversity, both within societies and in terms of global wealth distribution.
A female focus
Despite some significant regional variations, Credit Suisse research found women’s share of global wealth now stands at 40% and is rising in most countries. In fact, in the US women already control the majority (51%) of personal wealth. Meanwhile, of the $41trn in global intergenerational wealth set to be transferred over the next four decades, 70% is set to be inherited by women.
Some new businesses are already emerging to cater specifically for this huge potential client base, which is poorly served by traditional wealth firms. As femalefocused investment firm Ellevest points out on its website, in the US “86% of investment advisors are men, with an average age of 50+”, so a proposition “tailored specifically to women’s incomes and life cycles” faces an open goal.
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