Serving NextGen Investors: Innovative Technologies and Platforms

by Ashley Globerman, March 29, 2017
Industry Trends
North America

Abstract

Celent has released a new report titled Serving NextGen Investors: Innovative Technologies and Platforms. The report was written by Ashley Globerman, an Analyst with Celent's Wealth Management practice.

The wealth management industry continues to evolve as a result of a change in the core client base, advancements in technology, tightening of regulations, and political and market uncertainty. Wealth managers’ core client base is shifting from the baby boomer generation (born between 1946 and 1964) to the next generation of investors: Generation X (Gen-Xers) born between 1965 and 1981 and Generation Y (millennials or Gen Y) born between 1982 and 2000.

Celent’s 2014 report, NextGen Investors: Targeting the Millennial Generation, analyzed millennials’ approach to investing and personal financial management and the potential implications this posed for wealth managers and service providers.

Celent concluded the following points:

  • Segment customers and tailor products and services according to their needs, such as communication styles, loan repayment, and retirement planning.
  • Provide a streamlined, inexpensive, easy-to-use platform on both online and mobile channels.
  • Invest in meaningful customer service through digital strategy development and education portals.

In the 2017 version of this report, Celent will aim to address the overarching question of how millennials, with their distinct behavioral characteristics and investor profile, as well as their native affinity for digital solutions, have reshaped the wealth management industry over the past couple of years. This report will size the millennial generation and identify its defining traits, as well as analyze how wealth managers have adapted their business models, including new technologies and platform enhancements, to better serve millennials. The report will conclude with Celent’s outlook for nextgen millennial clients, wealth managers, digital platforms, and wealth management vendors.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

 

Key Research Questions

2

The Millennial Generation: An Overview

3

 

Millennial Behavioral Traits

4

 

Millennials and Investing

5

Reshaping the Wealth Management Industry

7

 

The Importance of A Digital Wealth Management Offering

8

 

Wealth Solutions and Digital Initiatives

10

Outlook

14

Leveraging Celent’s Expertise

15

 

Support for Financial Institutions

15

 

Support for Vendors

15

Related Celent Research

16

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