With the largest intergenerational transfer of wealth on the horizon, it is critical that advisers start reaching out Millennials, says Jessica Brady of Fox and Hare.
As Baby Boomers retire – and younger people begin to inherit money – it will be key for advisers to start attracting Millennial clients. But advisers need to step up their game to meet the demands of clients with needs beyond financial planning.
“I think the thing to call out here is that they want someone that feels and looks like right for them,” Ms Brady told the ifa Business Strategy Day.
“If that is someone you want to keep inside your business, it’s probably just about considering ‘do we feel and look right for someone who would inherit a lot of money from a family member?’.”
Ms Brady added that the “stats are pretty dismal” in terms of any intergenerational wealth transfer staying with incumbent advisers, and said that a large part of that was due to how advisers advertise their services. Ms Brady noted that many websites are geared towards an older demographic, saying “they didn’t speak to me”.
“Make sure you’re appealing to people that look like the next generation,” Ms Brady said.
Corporate social responsibility – including pro bono work – is also an important part of reaching Millennials. Fox and Hare works with a number of organisations, including Out Australia, School For Life and the YWCA.
“The next generation of clients … want to know that you care,” Ms Brady said.
“And make sure that you’re telling people. Not so that people can pat you on the back and tell you how good you are, but because then they get to understand who you are as a business and what you stand for. Ethical investing is becoming more and more discussed in client meetings, and they want to know what you’re doing to put your money where your mouth is.”
And while Millennials are obviously more interested in technology and how it can be applied to advice, they have what Ms Brady calls – borrowing a term from futurist Anders Sörman-Nillson – an “analogue heart and a digital mind”.
“They are still people, they still want connection, they still want to have face-to-face time with us,” Ms Brady said.
“There’s the belief that technology and robo-advice means that the next generation do not want to see and feel you. I don’t think that’s true. I think technology helps enable that.”
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