Traditionally wealth managers have catered to men who are in their prime earning years. However, advisors need to adapt to the changing times to continue to prosper.
One way to do it is to shift focus to women and millennials. As the wealth in the hands of women and millennials is increasing rapidly, it is imperative for wealth managers to approach these clients. If you do not, you run the risk of missing the fastest-growing market share, according to a white paper published by Wealth Management titled “Changing Demographics”.
In the present scenario, women are exerting more influence within their business families. Women are also starting their own businesses and have been reaping fruits of their entrepreneurial ventures.
Though female clients have the same financial issues as men, their approach to these issues is different from men. Their attitude towards risk and their views about investing throughout the life stages is distinct from men. Women take decisions only after they research about it online or through their networks.
Similarly, millennials have more opportunity to accumulate wealth as they are now concentrated in high-paying jobs such as technology and financial services. They also stand to inherit more wealth than individuals of the previous generation.
Advisors need to understand the difference between the millennials and the generation before them. The greatest difficulty with millennials is that they prefer digital technology. However, the white paper states that as the generation matures, they would prefer personal contact. In order to cater to them, upgrading the digital capabilities is an area which can be looked at. Advisors can look to offer wealth and investment planning tools online and through mobile.