Technology has made a noteworthy impact in the wealth space, with online overtaking face-to-face to become the preferred investment channel amongst millennials. Yet, *28% of millennial investor’s still prefer human interaction when arranging investments, so market players will need to provide customers with the best of both worlds, says GlobalData, a leading data, and analytics company.
Whilst digital channels are growing in their usage, with *29% of global mass and emerging investors preferring to arrange their investments online, particularly through their phone or tablet rather than a desktop, they will not replace face-to-face communication just yet.
Sergel Woldemichael, Banking, and Payments Analyst at GlobalData, commented: “In order for wealth managers to retain wealth and continue growing assets under management, all boxes should be ticked regarding the desires of the millennial and younger generation. Focusing on one type of service will be a risk and could see inheritors turn to those that provide more choice. An omnichannel approach is no longer optional as investors expect a seamless investment approach spanning digital and traditional channels.”
Several digital channels have emerged across the industry in the past decade or so, courtesy of both incumbents and new starters, so the industry is rightfully embracing the channels that customers require. However, it is now at the stage where doing so is becoming a must as millennials are about to take over as the largest economically active cohort.
Over the coming 10 years, $8.6tn of global high-net-worth wealth will change hands to the heirs of the throne.
Woldemichael concludes: “Millennials have communicated a strong demand for digital channels, amongst other products and services that their parents may not have desired. Meeting this demand will be critical for sustainability.”
*GlobalData Banking and Payments Survey 2019