The need for financial advice is no longer reserved merely for the older client, it is the younger generation who are taking early control of their finances and ultimately will be the next generation of wealth management clients. Many Financial Advisers need to rethink the advice they give and the manner in which they provide it in order to appeal to this new breed of client, and the best will:
The financial goals of younger clients will often differ, however subtly from older generations. It is usually more about the building and retaining of wealth and can include student loans, home ownership and (early) retirement planning.
Recognising that younger clients are comfortable with technology and prefer digital interactions is very important. They also want instant 24/7 access to their financial data and access to advice whenever they want it and wherever they are.
Society as a whole is becoming more ethically focused, but the younger generations especially, actively look in their day to day lives for companies who function with a moral imperative. A commitment to sustainability, social responsibility, and ethical investing can resonate strongly with younger generations.
Often a more mature Financial Planner will be akin to their current client base. They must be mindful that a younger client will often have a different world view and perspective and it’s building that bridge that is important, so that they feel seen and heard.
A more pro-active approach is required to focus the attention of the younger generations; it’s no longer enough to wait for clients to come to you.
Engaging with younger clients early in their financial journeys through educational content and workshops is a useful tool. Indeed, the earlier clients start to think about the importance of managing their finances and the benefits this can bring, the sooner they will require financial advice services. Providing friendly and easy access to advice and financial literacy resources will help clients make informed decisions, and begin their journey on the financial advice ladder.
Offering tailored advice and solutions, taking the time to get to know the client, to align your guidance with their specific financial goals and risk tolerance, is the basis of a solid and sustainable relationship – remember though that this might be a slightly different tone or slant than when talking with wealth clients who are older.
The younger generation are no different to any other investor in requiring fee transparency and knowing where their money is. Being open and transparent about fees, investment strategies, and performance is essential and open communication is key.
We all know that the advance of technology is rapid these days and that the younger generation in particular are lapping it up, with it being second nature to have technology involved in pretty much, every aspect of your life. In our article discussing Wealth Technology: Reshaping Wealth Management Recruitment we, as you would imagine, discuss the way technology is changing the placing of top talent, but it is also shifting the way Financial Advisers help their clients through.
An investment in user-friendly digital platforms, such as mobile apps and online portals allow the technologically savvy young (or older) investor to be in touch with their finances. Access to either a robo or human adviser at short notice is required and many firms are offering a hybrid AI/human mix which combines human advice with a back end of automated investment solutions to cater for different client preferences.
Data analytics are useful in studying and analysing data trends and understanding client behaviour and preferences, which can be used to provide a more personalised tailored approach to advice.
We know that investors or those building their financial services domain are younger than ever before and that they are more technically astute than their predecessors, but what can firms do to enhance their value proposition to attract and retain clients?
The presentation of a tiered fee structure or a commission-free option is a compelling and less intimidating way to attract new or younger clients with smaller portfolios. It’s a potentially scary thing to visit a Financial Adviser for the first time, especially if you are unsure if your wealth is large or impressive enough.
By focussing on the building of a rapport with your client and a mutually beneficial partnership, you are laying the groundwork for a solid and successful long-term relationship. Growing together by demonstrating a commitment to the client’s financial well-being, and building their trust in you.
There is so much more to financial services than simply the asking for and the giving of advice – the fully holistic approach is one where client and adviser grow together. Many financial decisions, from very early on in life, are also very important life decisions that affect one’s whole family. The provision of comprehensive financial planning services beyond investments, into areas like budgeting, debt management, pensions and insurance, are whole-life planning and are so important.
Experience is important in wealth management, but let’s not forget, or underestimate the importance of the fact that young people relate to young people. So, the recruiting of young finance professionals who, along with their talent in the industry will be closer able to understand the mindset of the younger client, is a wise move.
Mentorship programmes are also very valuable, the pairing of experienced advisers with younger colleagues facilitates knowledge transfer and career development. Of course, knowledge transfer works both ways in that it’s not just the older colleague sharing their wider experiences, but the younger colleague teaching relatability.
Would you like to delve deeper into a specific strategy, such as utilising social media to reach younger clients or developing a successful referral program? Perhaps have a read of this article: https://www.unbiased.co.uk/pro/discover/business-growth/how-to-attract-younger-clients
By implementing these strategies, wealth management firms can successfully attract and retain younger clients, ensuring a sustainable future for the business.
A strong Employer Value Proposition (EVP) differentiates your company from the competition and helps you attract, retain and engage top talent. EVP is a unique combination of benefits, rewards, and opportunities.
An effective Employer Value Proposition (EVP) creates a meaningful narrative for both current and potential employees. Your EVP needs to appeal to your existing staff as well as those you hope to attract.
A great EVP is a mix of both tangible and intangible benefits that you offer to employees. Focus on what employees’ value, explaining the benefits and show how these enhance employees’ lives.
Satisfaction, attraction and retention of staff impacts the success and profitability. No wonder people are talking about EVP as it increases their success in attracting the right people via their Wealth Management recruitment.
We expect to see WealthTech play an even greater role in shaping the future of financial advice as technology evolves. Competitive companies that seek to thrive will seamlessly mix the role of AI and WealthTech with the advice given by human advisers to create a dynamic financial advice service for their clients.
Wealth technology, or WealthTech as its known, is a specialised area of financial services technology (fintech), which uses innovative technology-driven solutions to enhance the way wealth management and investment services are offered.
There is a great case for using both WealthTech as a standalone, and also as a supportive tool for the tech savvy Financial Planners who utilise the dual advantages of financial expertise and technical acumen.
