Apr21077 Old vs new: how technology is bridging the intergenerational investment gap Private wealth managers are facing one of the most important generational transitions in living memory. As a younger generation comes of age, we are seeing the emergence of two distinct audiences with vastly different needs, expectations, and values: young tech-natives and an older, more traditional audience. As client services businesses, this change matters for wealth managers and retail trading platforms. These two audiences behave very differently and to succeed in the long-term, firms will have to ensure that they are able to service both effectively. The big question is in how they can attract a highly complex but increasingly affluent younger audience, while retaining and remaining accessible to an older generation. Technology for all ages Central to solving this problem is technology – giving firms the power, flexibility, and functionality to simultaneously tap into these highly sought after audiences. However, the extent of intergenerational preferences By Daniel Leis, Director, Institutional Sales, Saxo Markets UK and the speed at which they can change should not be underestimated – pushing managers to think carefully about choosing the right technology and functionality that will enable them to tailor user experience to an increasingly diverse user base. Technology, while ubiquitous in wealth management, needs to provide firms with the tools to deliver the highest level of critical functionality while being able to respond to rapidly changing demand. The need for connectivity, automation of basic processes and easy access to market or portfolio intelligence cut across demographics, but understanding generational nuance and how it can be tailored to better meet demand is essential to long-term success. Having holistic basic functionality is therefore essential – giving firms an extensive toolkit to service any audience. However, tools, features and user experience that deliver these services to individuals need to be carefully crafted. The older generation, for example, is broadly characterised as being more loyal to managers, with typically lower risk appetites and with clearly defined values, according to a recent EY report. Giving this demographic
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