The “Great Wealth Transfer”: How technology can help you deliver accessible financial advice to every generation

Three generations – old man, grown-up son and grandson – sit on couch at home using their gadgets and ignoring each other.

By AdviceBridge

Intergenerational planning is a hot topic and wealth transfer worries are among advisers’ top concerns. 

In fact, according to Schroders Pulse Survey, 54% of advisers are worried that they could lose business as wealth transfers between generations. 

Many advisers appear to have lulled themselves into a false sense of security

Many IFAs are concerned about the risks of intergenerational wealth transfer. Although most realise that failing to establish intergenerational relationships could be a costly mistake, there’s been almost no change in how advisers are adapting their strategies for younger investors.

An estimated £5.5 trillion is likely to move from baby boomers to millennials over the next 30 years. But many advisers appear to have lulled themselves into a false sense of security. 

They either assume that, since they are looking after this wealth now, they’ll automatically continue to do so as it passes down to the next generation or get stuck in inertia – not knowing how to address it or thinking it’s too far off to deal with now. 

So, the wisest advice firms will already be taking positive and proactive steps to ensure that when family wealth does change hands, it doesn’t leave their care.

Relying on past successful relationships as wealth changes hands is unlikely to be a winning strategy

Irrespective of how good a job you may have done in the past, assuming loyalty from the next wealth holder is likely to be a naïve mistake. 

These days, people value the experience and outcome more than they care about the provider. Many of us are more accustomed to switching banks, mortgage provider, energy supplier and so on, because we perceive there is better value to be gained elsewhere, and it’s easy to do.

The same theory applies to financial advice.

Read more: Clients expect access to their finances from 5 am to 11 pm – extend your office hours or ???

Take advantage of the opportunities for intergenerational planning

By embracing the potential brought about by the great wealth transfer to grow and protect your client base, you’re likely to build a more resilient and future-proof advice business. 

It’s good for clients, too. 

According to research carried out by M&G Wealth, sharing an adviser brings families a variety of benefits, including:

  • Saving money on tax (35%)
  • Ensuring everyone in the family is treated fairly (38%)
  • Helping younger family members (34%)
  • Ensuring the family is aware of each other’s financial situation (37%) 
  • Supporting parents/grandparents (34%).

Technology adoption can help advisers modernise their approach to client engagement

One clear way advice firms can engage the different generational demands is to improve the services offered through technology.

Today, people want more choice and flexibility over how they interact with almost everything. Often, they want to be met where they are and on their terms.

Offering the ability to engage digitally, face-to-face, as well as to self-serve when it suits, while retaining the quality of adviser oversight, is something that can quickly become a new baseline for all financial advice firms.

To respond to different demands from beneficiaries, advice firms should be finding new ways to actively improve the services they offer through better technology.

Read more: The figures don’t lie: Why advice firms must provide all three engagement channels (adviser, digital, and hybrid) for all client types

Apps and web tools can allow advisers to connect and engage with beneficiaries dispersed across different locations – in the UK and overseas.

Increased engagement with beneficiaries before they receive an inheritance could be one way to capitalise on the opportunity created by the great wealth transfer.

Preference for digital advice service delivery is not dictated by client age or wealth

Regardless of age or level of wealth, most clients would like to see a degree of automation for some advice services. Areas where investors specifically prefer a digital service approach include areas of portfolio management, such as diversification and tax optimisation.

The ability to interact with their financial plan and scenario plan engages those looking for the ability to interact digitally.

Technology helps encourage young people to engage with money matters and their financial affairs

Providing online tools to help your clients’ children and grandchildren manage their finances online can help them make better decisions about their money. As the person or brand responsible for putting the power in their hands, this should mean that they are more likely to turn to you for advice when they inherit.

By failing to provide a seamless digital experience, many advice firms are in danger of losing customers from the next generation.

Worse still, many IFAs who are failing to use technology to deliver value to clients are also wasting their marketing efforts.

If you’re spending thousands of pounds to drive traffic to your website, and not delivering with tech and tools to service those new to seeking advice, you’re probably throwing money down the drain.

How integrating AdviceBridge into your service offering can help you attract and retain younger generations

AdviceBridge is easy to implement and integrates seamlessly with existing software, significantly improving your business processes.

For clients, the illustrative AdviceBridge app, that you can provide direct access to, creates greater touchpoints and helps increase familiarity and strengthen trust.

Meanwhile, the goals-based tools enable your clients to see how altering their finances will affect them now and in retirement. Crucially, they can access and alter their information, at their convenience, 24/7. 

And, because the app will alert you to any updates or changes in their financial situation, you can deliver timely, on-point advice with minimal effort.

Get in touch

If you want to find out how AdviceBridge can help you deliver the service every generation now expects, please get in touch. Email or call us on 020 3925 3850.