A recent Cisco study revealed that social media and video are required to successfully tap $31 billion wealth management for young investors market and help financial advisors engage with their tech-savvy clients.
Studies show that by offering more frequent interactions, more collaborative technologies, and more personalized financial services, revenues can be enhanced and wealth can be retained.
These young investors represent 40% of the word’s investable assets, increasing as they age and inherit assets from the older generation on the nest 10 years.
The survey shows that 20% of young investors plan to change advisors the next year, only 5% of the older have plans of changing advisers. Thus, financial firms should offer more frequent adviser interaction and higher-quality customer experience through social media and video conferencing.
In fact, 57% of younger investors consider firms that offer video as a way to connect with their advisers and other experts.
Cisco IBSG interviewed over 1,200 wealthy investors in the US, UK, and Germany with at least $500,000 investable assets. The study revealed ways that these investors prefer to interact with advisers and firms.
- $31 billion revenue opportunity for financial firms targetting wealthy investors aged 55 or younger
- Investors aged 55 or younger accounts to 40% of global investable assets
- 20% of these investors plan to change their advisers in the coming year; compared to 5% for older investors
- Up to 57% of these investors are willing to move their assets to firms that offer video conferencing to connect to advisers
Jörgen Ericsson, Cisco IBSG Vice President and Global Lead, Financial Services Practice: “The rapid adoption of technology is quickly changing the game for interactions between wealthy investors and their financial advisers.”
Jim Schuman, ANZ Bank Group General Manager: “The client perceptions and preferences identified in the Cisco IBSG study are factors that we already see influencing the development of innovative business models in financial services.”
Covered by my Visible Banking Team
You are working in the wealth management industry? Have your firm started to leverage social media and video to better communicate with your market? Have your clients already expressed the need for more transparency and engagement?