How Banks & Financial Advisors Can Win Millennials & Gen Xers

Mar 23, 2016
Ashley Speagle


Ashley is a content marketing specialist for VMware.

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By Manasee Dash, Sr. Product Line Marketing Manager, Financial Services, EUC, VMware

Women and Millennials: These two groups top the list of trends influencing the future of wealth management, in a recent CFA Institute article. My first reaction was surprise, but it makes sense. Women currently control about half of the wealth in the U.S., and we’re estimated to be in control of two-thirds of the wealth by 2020.

My second reaction was, of course Millennials (half of which are women) will impact financial services! After all, they are changing the world for the better in their own unique ways. Up-and-coming Millennial, as well as Generation X (Gen X), investor bases are becoming increasingly significant in number and services solutions to win Millennials

Case in point: Millennials (born 1981–2000) and Gen Xers (born 1965–1980) stand to inherit about $41 trillion from Baby Boomers over the next 40 years, an unprecedented intergenerational transfer of wealth. And they’re looking for financial advice to put their money to good use. An overwhelming 84% of young investors without an advisor said they would use one in the future, according to an InvestmentNews Research survey.

However, these next-generation investors don’t share an appreciation for established institutions like banks and generally distrust the stock market. A meager 14% said they trust Wall Street, in a Harvard University’s Institute of Politics survey. They’re generally uncomfortable with the conservative culture of finance, and in recent times, the volatility of financial markets.

But their love of digital, tech-savvy solutions and affinities for being connected at all times can help banks create transparency and connect with them in a way they trust. In the InvestmentNews Research survey, 78% of young investors would consider working with a financial advisor that offers online services.

Newer generations are setting the stage for a major paradigm shift in the delivery of financial services. This presents a unique opportunity for private bankers, financial advisors and relationship managers to rethink the way they engage with newer generations—with technology.

Digital Dialogues Disrupt Wealth Management

Managing wealth begins with dialogue. It continues with dialogue. And today’s dialogue is often occurring over technology. Email, chat, texting—they are all enablers now in making conversations between a relationship manager and a customer relevant.

Relationship management is at the very core of the business of managing wealth, and it is changing rapidly. In decades past, a financial advisor would meet clients with an executive briefcase over a long wine-and-dine process. He’d show the client a six-page portfolio printout with a bar chart of the past 12 months’ performance, and then it would be time for cigars.

Fast forward to today: Lunch may happen once in a while, but Millennial and Gen X clients demand information anytime and anyplace. That is completely changing how data is delivered, presented and consumed, and technology leads the charge.

Take a look at this video to learn how ABN AMRO Private Banking is enabling relationship managers to visit customers anywhere, anytime.

Deliver Financial Services on Demand with a Secure Digital Workspace

mobile financial services solutionsNext-generation investors expect their advisors to regularly communicate electronically, and when they do meet in person—often in a coffee shop, a shared office space or in a home—they want that advisor to arrive with a tablet and mobile apps. Tech-savvy clients want to know their relationship managers have modern tools that allow them to follow and find new investment opportunities, review portfolios, make allocations in real time and, yes, even execute trades on their behalf instantaneously.

And now banks can meet those expectations using VMware’s newest technology. The secure digital workspace for financial services—powered by VMware Workspace ONE—empowers relationship and wealth managers to better engage with customers and improve the client experience. With a digital workspace, advisors can securely and seamlessly access market feeds, client portfolio details and account information on any device, from any location, without compromising client data.

This game-changing technology ensures financial advisors have what they need to stay connected to their clients and be productive at all times. VMware also provides the tools that IT requires to securely manage and support highly mobile relationship managers as consumer technologies cross into the enterprise. With VMware, corporate IT can deliver policy-based mobile access to front-end tools and other enterprise content on any device—with an overlay of security to satisfy regulators and internal compliance, given the nature of sensitive client information and data.

The truth is, lots of banks offer services, but not every bank offers personalized, always-on support and transparency that newer investors increasingly demand and expect. Empower your relationship managers to attract these new clients while keeping existing customers on the path to achieving personal liberty and financial prosperity. Contact VMware today to learn more about our next-generation financial services solutions.

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