Over the next few years, a new generation is set to hold the majority of spending power and wealth in the world. Born between 1980 and 2000, the so-called millennials are currently the largest adult segment in our population and soon they will also be one of the wealthiest.
It’s a time of change for wealth management institutions, which have until now been used to serving a customer base with an entirely different set of needs and expectations. Affluent millennials are, generally speaking, technologically savvy, more cautious and less trusting of the financial services industry as a whole. They want more personalised services, more transparency, more control, and expect digital by default.
The good news is that the industry is beginning to respond, and the ones that are proving themselves capable of meeting affluent millennials’ needs are already reaping the rewards. They are changing their business models, developing new products and services, and exploring how they can collaborate with players outside of the industry to strengthen their value proposition.
In this Efma digest, we highlight some of the key ways in which financial services institutions can cater to the affluent millennial and set their business up to thrive in the future. Split into three parts, we look at what makes affluent millennials unique compared to their predecessors and what they expect from their financial services provider, some of the key challenges and threats traditional providers face, and what they can do to keep up. It is in this final part that we set out six recommendations for how financial services providers can tap into the affluent millennial mindset and win their custom, drawing insight from recent research and real-life success stories.
Keywords : Affluent/Private , Bank Products & Services , Digital/Mobile channels , Youth