Gemma Livermore, International Financial Services Marketing Lead at Seismic, explores how wealth managers can personalise approaches for millennials and Gen Z.
The UK is about to witness a Great Wealth Transfer, where an estimated £5.5 trillion is set to pass down from Baby Boomers to Millennials and Gen Z by 2045. This wealth transfer will reshape financial markets as a new generation of investors come onto the scene.
With the Great Wealth Transfer underway, wealth managers will need to adapt their approach to meet the unique and ever-changing expectations of these younger generations who demand personalised, digital-first solutions. Influenced more by social impact, technology and sustainability when making investment decisions, wealth managers need to adapt to these trends or risk losing vital business. After all, research shows that 70% of inheritors are likely to switch financial advisors if they feel their needs are not being met.
So, how can wealth managers keep pace with generational shifts and emerge from the Great Wealth Transfer on top?
- Trade cookie-cutter approaches for personalisation
Millennials and Gen Z have grown up in a digitally driven world of real-time updates and mobile-first solutions, with an app for everything. As a result, they expect immediately available advice delivered in bitesize chunks, tailored to their specific financial needs and goals.
A study conducted by EY found that 61% of UK investors say that hyper-personalised financial advice is critical to their wealth management experience. Therefore, a cookie-cutter approach is no longer sufficient — the new generation of investors desire a personalised service that reflects their own values and finances. They expect financial solutions aligned with their unique circumstances, whether that’s paying off student debt or saving up for a house deposit.
- Prioritise education and financial literacy to build trust
The younger generations, especially Millennials, grew up during or shortly after the financial crisis of 2008, which left a lasting impact on their perception of financial institutions and traditional wealth management. Many witnessed and experienced economic hardship, rising student debt, and income inequality, leading to a lack of trust in the systems that failed them during a time of economic instability. Therefore, these generations are typically more critical of large financial institutions and lack confidence in traditional wealth managers. This is particularly evident when it comes to fees, conflicts of interest, and financial product recommendations.
For these reasons, wealth managers will need to work harder to gain the trust of Millennials and Gen Z as they become the new generation of investors. Prioritising education and financial literacy can help with building trust among the younger generations. For example, offering financial planning workshops or developing online resources can deepen relationships between wealth managers and their clients.
- Layer on ESG advice as a value-add
Social, environmental, and governance (ESG) factors are particularly important to Gen Z and Millennials when it comes to investment decisions. Younger generations (48%) care about how their investments can make a real impact on the world. They want their money to align with their values, such as sustainability, ethical business practices, and inclusivity. However, this stat has fallen from 53% in 2023 and from a further 66% in 2021, according to the Association of Investment Companies’ annual tracker, which indicates a decline since the pandemic.
Still, it’s been reported that ESG data is harder to obtain since companies are no longer as open and transparent about it. In a poll last year of 420 investors, BPB Paribas found that over 70% of respondents believed “inconsistent and incomplete” data is the biggest barrier to ESG investing. This points to the importance of wealth managers sharing information on ESG with younger clientele to aid their decision-making and build stronger relationships with advisors.
- Transform the client and adviser experience with AI
Embracing digital tools such as portfolio management apps, and client portals with instantly accessible up-to-date information and tailored financial advice will allow for a more interactive, transparent, and efficient wealth management experience. But that is just one part of the engagement framework: knowing that next gen clients are looking for an experience with their wealth management firm that blends human and digital engagement channels. They should seamlessly connect, requiring a new approach to the adviser tech stack.
For the advisers serving (or looking to serve) these next-gen clients, enablement tech optimises the adviser tech stack. They can leverage AI to better prepare, present, and follow up on every meeting, automatically surfacing action items, recommended content, and call summaries. Advisors are empowered to deliver more impactful meetings, personalise content, and streamline compliance in just a few clicks. When integrated into the CRM, advisors can personalise every interaction, every communication, easily and compliantly, providing them with more time to spend growing client relationships.
Seismic’s recent research, Revenue Enablement in Financial Services: 2024 Global Findings & Insights, found that 98% of respondents said they’re increasing their investment in enablement technology in 2025. And 92% of Financial Services leaders believe they will be indispensable in providing personalised client experience in the next 5 years. With AI embedded, enablement is quickly becoming an invaluable tool for wealth management firms and advisers.
A new financial era
A Great Wealth Transfer presents a need for wealth managers to rethink their approaches to financial advice. By embracing technology such as enablement software, offering sustainable options, and providing tailored financial advice, wealth managers can adapt to the changing needs of younger clients.
This shift in wealth will require a new mindset, openness to technology, and a commitment to understanding the values of the next generation of investors. If acted upon now, it has the potential to completely reshape the future of wealth management, and the experience wealth managers give back to clients.