Every generation has its stereotypes. You’ve likely read that Generation Z (born 1997-2012) is self-centered and obsessed with technology and social media. Millennials (born 1981-1996) are lazy and entitled. The latchkey generation, Generation X (born 1965-1980), is a cynical group with abandonment issues. Baby Boomers (born 1946-1964) are so focused on their careers that they don’t have time for anything else.
If financial advisors believe these stereotypes, they risk making age-based assumptions and missing opportunities. On the other hand, ignoring generational differences can impede advisors’ ability to respond to clients’ needs.
There is no better time to build generational diversity and close the generation gap that persists in the financial advising industry. Upgrading your technology can build solutions that match the goals of every individual, no matter their age.
Why the Old Way of Doing Business Won’t Work
The financial advising industry skews older (the average age of financial advisors is 55), so firms that want to attract younger clients may need to rethink their strategies. The common wisdom to recruit clients with substantial liquid assets and disposable income may not be sustainable in the future. As financial advisors and their clients get ready to retire and younger generations inherit new wealth, the dynamics of firms seeking new clients must also change.
More than half of Americans are millennials or younger, but they have different priorities than their parents. Although millennials may hope to retire one day, student loan payments and saving for the future loom larger. Millennials care about being socially responsible with their spending and investing. They also feel comfortable with digital information and prefer digital rather than human help with their money.
Baby boomers are more confident about money than their younger peers. They are less confident when it comes to digital financial literacy, but it’s a skill many would like to learn. Most boomers get their information from reading or talking with others, so it’s no surprise that digital-human hybrid advising options are more popular with older generations than digital-only options. So is it possible to meet the needs of all age groups?
Look for New Clients Everywhere
Underserved demographics can be an opportunity for your firm to expand its services — if you do it right. For example, many millennials are searching for a source of financial advice but aren’t sure who to trust. Many emerged from the pandemic with a new urgency to set goals for the future. Well-established Generation Xers may not possess the same financial security as their parents but are cautiously optimistic about retirement. They educate themselves about financial information online, and most have investments.
To appeal to younger clients, you need to meet their expectations. Clients, especially those 40 and younger, expect digital interfaces and customized advising. These clients look for firms that adapt to trends and stay on top of current technology. If your firm doesn’t offer interfaces, services, and products that meet younger clients’ expectations, they may look elsewhere for a better digital experience.
Invest in Software to Meet the Needs of Younger Clients
Because younger clients expect to interact with the latest technology, your firm may seem outdated if you use older technology. For a generation accustomed to using apps for everything, filling out printed forms by hand in person doesn’t inspire confidence. But what about older generations?
Although data management can improve a younger person’s client experience, it can do the same for an older client, all while making your life easier. Although an older person may be more comfortable with meeting in person, anyone can appreciate the convenience of a document management system that only requires a single copy of a form, the value of a shorter onboarding process, and the convenience of accessible information. Plus, advisors understand the value of saving time and money with fewer errors.
Advisors unaccustomed to using technology to its full potential may be intimidated by making the digital switch. How do you choose from the array of options? How do you know which technology best meets your clients’ needs? How can you avoid wasting money on solutions that don’t integrate well with your current software?
To invest strategically, you need more than the latest fad or program. A data management system that integrates well with the software you already use, such as your CRM, can help you get started. Once you have a centralized location to manage and easily retrieve data sources, it becomes easier to customize solutions that align with client preferences rather than following a one-size-fits-all approach. This way, you can move beyond stereotypes to provide technology, services, and products that meet your clients’ needs, no matter their age.
Ready to learn more about how technology-centered strategies can accelerate the growth of your firm? Contact communications@docupace.com to learn more about how Docupace’s document management solutions can help you attract new clients, regardless of age.
