Looking to Attract Younger, High-Net-Worth Clients? [REPORT]

BNY Mellon’s Pershing launched a new whitepaper, “Gen Why? How to Succeed with Younger, HNW Clients Who Question Everything,” sharing tips on how advisors can attract younger, high-net-worth (HNW) investors. According to the findings in the paper, financial advisors need to adjust not only their marketing strategies but also their business models to attract and retain this group of investors.

The paper examines the demographic and psychological factors driving decision-making among Gen X, Gen Y and Gen Z clients—with a focus on investors with $5-25 million in investable assets. It draws important conclusions about the differences and, more importantly, commonalities of these investors in order to help advisors devise a strategy for reaching these demographics.  

“Younger generations are poised to earn and inherit significant wealth in the years to come,” says Katie Swain, ‎director of financial solutions at Pershing. “For advisors looking to attract and retain young HNW clients, rapid response times, authenticity and complete transparency, along with technology and social media savvy have all become absolute requirements.”

Gabriel Garcia, managing director of relationship management at Pershing Advisor Solutions, adds, “A seamless digital experience and distinct brand recognition are increasingly critical to building a successful advisory business. In reaching younger clients, advisory firms would benefit from looking at the business models of retail and technology companies like Amazon, as well as branding approaches of iconic luxury brands like Ritz-Carlton and Rolex.”

With billions of dollars at stake as the next generation accumulates unprecedented wealth, firms looking to attract and retain these investors must revisit their strategies to incorporate cutting-edge, digital capabilities, socially responsible investment offerings and consistent authenticity.

Key takeaways for advisors include:

  •     Actively manage time. Time is a limited resource to be spent wisely. Younger investors want to work with advisors who use their time as efficiently as possible—interactions should be polite but productive and to the point.
  •     Meet them where they are (online, mobile). Advisors will not find many millennials on the golf course. Younger investors are hyper-connected, relying on their devices to save them time and keep them up to speed, and expect their advisors to do the same. More touchpoints but of shorter durations with email and text are preferred, while video chat is preferable to face-to-face meetings.
  •     Align your business to a broader mission. In addition to providing an array of socially responsible investment offerings, advisors should champion a social cause that’s of real importance to them, and clearly communicate how this commitment ladders back to the core values of their business.
  •     Skip the standard pitch. Younger investors want to feel they have the necessary information to make smart, informed financial decisions. With that in mind, advisors should consider curating podcasts, short videos and objective investment insights to keep clients informed and involved.

To download report CLICK HERE.

 

 

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