Millennials - Are you ready?
"Millennials are set to have a huge impact on the global economy. Their spending and saving decisions will mean the demise of some long-established business models and the rise of new ones.
Millennials make up almost one-third of the global population and account for around half of the global workforce. Together with their successors (known as Generation Z), they will account for almost three-quarters of the workforce by 2030 – replacing the baby boomers and Generation X who drove the economy in recent decades.
With the oldest millennials only now reaching their late thirties, they still haven’t reached their peak earning power. Millennials’ global annual earnings are expected to rise from $18.4trn in 2015 to $32trn by 2030; Generation Z will add a further $30trn.
Millennials grew up with the internet and are “digital natives” who are enthusiastic adopters of new and innovative technologies that fit in with their lifestyle choices. They like smart technology for phones, tablets, cameras, speakers, TVs, and credit cards. Wi-Fi is their oxygen, and they live and breathe online through social media and the cloud.
93% own a smartphone, 55% a tablet and 86% use social media."
Source: Incisive Media & Lyxor ETF
"Are you prepared for the next generation of your clients?"
The lock-down has pushed us all to adopt new technologies to communicate with our clients, family and friends. Video-conferencing, document sharing and e-signatures have become the normal way of working and it is unlikely many firms will go back to paper and 100% face-to-face client meetings in the future.
There has never been a better time to implement a digital strategy for your clients and future clients.
With moneyinfo, your existing clients will appreciate the ease with which they can view their investments, communicate securely with you and keep track of all their financial paperwork.
And your digital app is a bridge to help you build a relationship with the next generation of your clients.
Through their social media networks, the children of your clients could be your best advocates in attracting new clients as they will naturally share a job well done with their friends. For good or bad, depending on your relationship, their network will connect you to these new clients.
Sixty-six percent of children fire their parents’ financial adviser after they inherit their parents’ wealth.
What can you do to ensure the ‘millennial’ children of your clients not only remain your clients when the wealth passes to them but become advocates for you in the hunt for new assets?
It’s going to be expensive to offer face-to-face advice to the next generation - and they may not need it right now – but creative use of digital technology can help you to cost-effectively build a relationship.
It must be mobile.
The technology you provide your clients’ children should help them manage their finances, though of course for them to use it, it must be available as an app for their smartphone.
Extend your existing app to your clients’ children so they can:
- Track their investments, savings and pensions.
- Track their property and related insurances.
- Track their income and spending.
- Manage their debt (mortgage, student loan, credit cards etc)
- Store all the paperwork so they can find it easily, especially in an emergency.
- Remind them when they need to do things such as policy renewals, car MOT etc.
Nudge them into making better financial decisions.
Your future clients will appreciate being able to monitor their savings, pensions, investments, personal finances, property, insurances and debt together in one place and will also benefit from any relevant news that helps promote good savings habits.
You will be there to help them in the moments that matter.
They will love having one easy place to store all their financial paperwork knowing it is secure and accessible when they need it and your app can provide them with a secure method to communicate with you so that if they have any questions or concerns you can be a first port of call. You will be there to help them in the moments that matter.
Reinforcing your existing relationship.
By using technology with the next generation, you are reinforcing your relationship with your current clients.
Subject to agreement to share data, you can provide views across the whole family bringing together client, partner, trusts, dependents and business accounts. And for estate planning, the net worth statements will combine to provide a family balance sheet to identify potential IHT liability and helping you to propose solutions to reduce the liability including transfers and life assurance.
Work with your current clients to create an ‘in case of emergency’ (ICE) folder in which to store everything of relevance including copies of wills, trust deeds and lasting powers of attorney together with all the relevant paperwork for insurances, property deeds etc. This means that should the worst happen, you can provide the family with all the information and paperwork to calculate the estate, supporting the executor and speeding-up the process of probate.
If you’ve helped the children with financial advice when they need it, helped their parents to estate plan and made the process of probate easier then I’d suggest you’re well on your way not just to securing the succession of your current assets but through recommendation and social networking, access to a huge new potential client base.
On the other hand, you can just do nothing and hope that your clients live longer than you...!
To find out more about how moneyinfo can help your business please click here to arrange a personal 1:2:1 meeting.
Sim Sangha is Business Development Director at moneyinfo limited.
03303 600 300