There’s a lot of commentary of late regarding the inevitable wealth transfer to a younger generation of investors. Let’s face it, it’s fun to say the word "Millennials" and discuss how they are different. Despite similarities, generational differences are notable and the evolution of product and advice options underscore the need for both financial advice and investment product providers to prepare accordingly for the future marketplace.
However, there’s a more immediate opportunity to stay focused on. In our Money Movement insight module report, we identified that approximately 26 million households, controlling $13 trillion are considering moving money. Additionally, there’s another $15 trillion held by 47 million households who are not completely satisfied with their current financial services providers and simply have yet to make a decision.
Our historical analysis of money movement related asset growth found that it hasn’t all been about a race to the bottom when it comes to a willingness to pay for advice. Yet, well defined segments and their related triggers are apparent.
For advice and product providers seeking to enhance marketing and client acquisition ROI, as well as asset managers who support them, there is no shortage of opportunity. The key is to develop a deeper understanding of the prevailing sentiment, unmet needs, transaction journeys and engagement motivators for the here and now.