Posted by: Adam Weston
26 September 2024
The article discusses insights from Invessed's webinar on bridging the generational wealth gap in wealth management. Key points include:
- Asset managers are working to attract younger investors (post-1965 generation) to their services.
- There's a significant disconnect between younger generations and traditional wealth management, characterised by limited financial literacy, low savings rates, and a preference for self-management.
- Theo Paraskevopoulos, Invessed's chief executive, emphasised three key areas for wealth managers to address: awareness, complexity, and price.
- The industry must educate younger generations about professional advisors, simplify financial language, and use digital technology to provide more accessible services.
- An innovative approach discussed was using client portals as "digital twins" in wealth management, creating digital replicas of offline operations.
- The challenge lies in balancing traditional financial advice with the digital-first preferences of younger clients.
Overall, the article highlights the efforts of firms like Invessed in modernising wealth management to meet the needs of a new generation of investors.
Asset managers are striving to bridge the generational wealth gap by tackling the challenge of attracting younger investors to their services.
A recent webinar hosted by Invessed, featuring industry experts, illuminated the changing landscape of wealth management for the post-1965 generation.
Invessed's chief executive, Theo Paraskevopoulos, led a discussion highlighting a significant disconnect between younger generations and traditional wealth management services. Limited financial literacy, low savings rates, and a preference for self-management among younger investors characterise this gap.
The challenge now lies in striking a balance between the human touch of financial advice and the digital-first preferences of younger clients.
Paraskevopoulos emphasised three critical areas for wealth managers to address these challenges: awareness, complexity, and price. The industry must educate younger generations about the availability of professional advisors, simplify financial language, and harness digital technology to provide quality service at more accessible price points.
An innovative approach discussed was using the client portal as a "digital twin" in wealth management. Adapted from healthcare, this concept involves creating a digital replica of offline wealth management operations, ensuring all brand touchpoints are available in physical and digital realms.
As the wealth management industry evolves, firms like Invessed are pioneering efforts to bridge the gap between traditional financial advice and the needs of a new generation of investors. The challenge is balancing financial advice's human touch and younger clients' digital-first preferences.