Advisors warned not to ignore next-gen customers


Investment advisers are making a big mistake if they ignore the next generation of investors, who may not have the level of assets advisers want today, but soon will, says Michael Alexander , Chairman of Wealth Management at Broadbridge Financial Solutions, to attendees at Sifma’s Private Wealth Conference today.

Millennials and Gen X investors are set to inherit $6 trillion in wealth over the next decade, and they’re not known for sticking with their parents’ wealth management firms, Alexander warned.

“The biggest corporate deficit is ignoring investors with lower asset levels. The next generation of investors are the ones who will inherit trillions of dollars from our parents and my generation,” Alexander said in an interview.

While much of the consulting industry has been built on traditional face-to-face relationships, often with a head of household who has often been a white male, you are now going to see trillions of dollars going to the next generation of investors who invest differently, he added.

Next-generation investors are more collaborative, they expect more validation when it comes to investment and planning recommendations than previous generations, and they expect a highly personalized digital experience, he said. he declares. Some 90% of investors of all ages told Broadbridge they would leave a company if they didn’t get a transparent and meaningless experience, he said.

“You won’t be able to attract the next generation using the tools and methods that advisors have used,” Alexander said. Businesses should use technology to create “a great, highly intuitive experience that leverages artificial experience, behavioral science and data to deepen customer relationships,” he added.

“It all comes down to ‘do you understand me?'” he said. “If I care about retirement and you care about college funding, you don’t want to see or hear things that have nothing to do with your goals. Advisors therefore need to be able to cut through the noise by creating technology that emulates other great customer experiences.”

Broadbridge, which serves more than 85 million advisory clients and nearly 40% of industry advisors, is building the wealth management industry’s next-generation platform, using a strategic partnership with client UBS Wealth Management USA. principal of the company for the platform.

UBS has rolled out its platform “in many areas at this point, and is getting very high marks from their advisors in terms of how it helps them grow revenue and gather assets,” said UBS. he declared.

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