Wealth Management In The Age Of GenX And Y: Embracing a World Of Change

Wealth management has had to adjust to the many upheavals experienced by the economy over the past decade while incorporating disruptive innovations in fiscal technology. Besides this, it also had to contend with the slow but inevitable event of a generational turnover.

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Generational turnover can pose several challenges for wealth management professionals and firms. Traditionally, wealth management had been the purview of the baby boomers, individuals who still represent much of the sector's client base. However, a new client base hailing from the GenX and millennial (or GenY) populations are emerging, and wealth managers would do well to tap into this market early on.

Turnovers often embody the old saying “the more things change, the more they stay the same.” Each generation may have grown accustomed to its particular technological and professional milieu, but they share enough fundamental similarities to warrant similar treatment.

For instance, although GenX and millennial investors are typically more comfortable communicating with firms through technology than their Baby Boomer counterparts, they also respond rather well to prefer interfacing with wealth management professionals directly. Thus, while incorporating other communication channels becomes a necessity, the traditional face-to-face approach remains important.

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Because turnovers are gradual, this also means that catering to the generations is a tenuous balancing act. Serving more tech-wary baby boomers remains vital to the industry as they still represent a sizeable portion of the client base. Firms should take the opportunity to allay their legitimate concerns about technology -- cybersecurity in particular -- as they keep lockstep with the demands of younger clients.

A Chicago native with a degree in comprehensive marketing from Illinois State University and an MBA in finance from the Katz Graduate School of Business, Grace Jackson has behind her more than 23 years of experience in the financial services sector. For more updates on the fundamentals of wealth management, visit this blog.