Reaching Millennials – The Next Big Opportunity in Digital Wealth Management
Mar. 13, 2017
Millennials’ net worth will double within five years and they will inherit tremendous fortunes in the decades to come. However, while wealth managers’ existing offerings for the wealthy millennial generation are insufficient, the right digital products can address this deficit effectively.
Our report “Reaching Millennials – The Next Big Opportunity in Digital Wealth Management” explores why wealth managers have to keep an eye on younger client segments and how digital platforms can ultimately gain the loyalty of this broad and heterogeneous demographic group called millennials. For the report, we conducted in-depth, face-to-face interviews with wealthy young adults and adults beginning their working lives with a considerably high wage. In addition, we analyzed the existing initiatives by wealth managers to target younger prospects and clients.
Our interviews reveal the millennials’ desire for professional advice from wealth managers they trust, but also their great dissatisfaction with the customer service and outdated digital offerings at their current financial institutions. As a result, the majority of our interviewees for the MyPrivateBanking report stated that they are considering changing their bank, or in some cases had already moved to a competitor. The reports outlines which of those competitors are most threatening to established wealth managers.
The report identifies one of the main obstacles that wealth managers must overcome if they really want to engage the millennial generation—the common assumption that one strategy can target a whole generation. This belief is far too simplistic and ultimately will fail. To support wealth managers in creating compelling, tailored offline and online offers, the report identifies five main archetypes of millennials and details their main traits in terms of attitude towards wealth, financial behaviors, digital communication and psychological characteristics. It lays out how these different groups of wealthy millennials differ in their appetite for savings and their financial knowledge, digital usage patterns and client satisfaction, and how wealth managers must adapt their strategies to reach each segment.
We searched the globe for digital offerings that wealth managers have tailored to the millennial generation, and we found that there are only a very few examples. The report presents carefully selected, detailed case studies of seven next generation initiatives offered by six leading wealth managers worldwide. The case studies describe which tools and media these wealth managers employ to reach and engage wealthy millennials and how they orchestrate their offline and online initiatives.
Based on this comprehensive analysis of the needs of different groups of wealthy millennials and the status of wealth managers’ offerings, the report derives a comprehensive set of recommendations on how to take advantage of the generational shift by employing the right strategies, initiatives and digital tools.
About the report: The report “Reaching Millennials – The Next Big Opportunity in Digital Wealth Management” is based on 16 personal interviews with wealthy millennials and lays out the reasons why they are of such importance to wealth managers. The report identifies five different segments of wealthy millennials and details the needs, preferences and expectations with respect to their wealth managers’ offline and online offerings. In addition, the report presents case studies of wealth managers’ current offerings tailored to the millennial generation and gives essential recommendations for wealth managers on how to take advantage of the generational shift by employing the right digital tools and channels. More info.