Millennials set to inherit £215bn over the next decade
The company’s report, 2018: Trends to Watch in Global Wealth Management, said this £215bn is around 20% of UK high-net-worth individuals’ liquid wealth. This should be a real boost for financial advisers, it argues, but only those who understand how to service the next generation.
Different studies estimate that up to 90% of children switch financial advisers after they take control of family assets. GlobalData said there remains a misplaced belief that the next generation simply want access to digital channels, but its study showed millennial investors are still frequent users of traditional channels.
Bartosz Golba, head of wealth management content at GlobalData, said: “Millennials require access to human financial advisers. In fact, the proportion of investors who contacted their investment management provider face-to-face is higher among millennials than among baby boomers or Generation X. Younger generations require true multi-channel propositions that allows them to talk to their provider when they want, and how they want – be it in branch, over email, by telephone, or on Skype.”
While Millennials who are still building up their wealth are more likely to have tried robo-advice than their parents, they are also open to new solutions. Most of them keep the majority of their assets within their main bank.
Golba said: “This is because millennials are paying off their mortgages, and their first savings land in the accounts they hold with mortgage providers. This puts universal banks in a privileged position to bond with individuals from the very beginning of their financial journey.”