Wealth Management 2019 Trend: Passing the Torch

There are certain things that are facts: Batman is not a real person. Fact. A broken clock is right two times every day. Fact. A new generation of investors is coming. Fact!

Today, the average investor is in their 60’s. This means that the largest transfer of wealth in history, from Baby Boomers to later generations, has already begun. These up-and-coming generations differ in many ways from the Boomers who came before them. For starters:

  • they travel a great deal and are less rooted to “place”;
  • they’re not as focused on owning real property;
  • they have a strong entrepreneurial streak and are less tied to traditional employment relationships;
  • more than ever before, women control wealth

In many ways, the Baby Boomers lived in a simpler time before we were so connected to and reliant on technology and the Internet. New generations are more digitally connected than ever, and this means they need their financial institutions to provide them with 360-degree advice and require much more than just onboarding and periodic reviews.

CLM *is* Continuous Onboarding

If banks want to connect to new investors, they need to treat each and every interaction as a chance to go deeper with their customer by gaining a more complete understanding of them. This is why client lifecycle management should be thought of as continuous onboarding.

Even offboarding should be considered as a chance to onboard. Advisors can already begin to onboard a current investor’s child by connecting with them now. It’s critical that financial institutions focus on the full lifecycle of the client, starting well in advance of them actually owning wealth.

Educate, Don’t Sell

Onboarding the next generation begins with two-way education. First, FSIs have to educate potential clients on the value that they offer them, and on the implications that that wealth will bring to the client. Second, FSIs need to educate themselves on clients’ wants, needs, and goals.

Failing to do this as part of managing the client lifecycle journey is already leading to asset leakage; many traditional FSIs are losing clients as they choose to keep their money with newer, more modernized entrants.


Another simple yet successful way to connect with investors is through gamification. For instance, credit cards that have rewards systems do really well with the younger generations. Credit card companies have found a smart way to engage people as well as to influence consumer behaviors, so more than ever before we’re choosing to whip out our credit card instead of our cash. Because who doesn’t love getting rewarded for spending money?

All of this boils down to one important idea: Banks must understand customer needs to drive growth.