The evolution of technologies drives the needs and expectations of 30- to 40-year-olds in wealth management services to new horizons: online services, robot advisors, e-mail communication. Still, the manager in person still has his place.
Students want to be robot advisors
Robot advisors are becoming more and more popular in the United States. In Canada, these fully automated services are not yet legal, although similar services, supervised by real estate portfolio managers, have begun to grow.
And young people, attracted by the technological aspect and the ease with which they can access their information, tend to go towards these services. Many students would go to robot advisors for these reasons.
The new requiements
The model of advisors who move home to talk about placements is less popular among young people. Wealth management firms have therefore begun to change the means they use to communicate with their clients. Several of them have updated the interface of their website.
Today, the requirements are probably no longer the same. We may be more in an instant generation. If customers have questions, for example, they are more tempted to send an email. Speed of communication also becomes crucial.
Generation of the compromise
At the age of 30 or 40, many people start investing. Under 35s are only 34% to invest in investment funds. Between 35 and 44, on the other hand, half of the people invest.
At the same time, the younger generations give more room to the family, and less to the long hours worked. People want to work less. So they have more time to manage their finances. Financial institutions are making efforts to attract them and offer ever more diversified products.
Financial professions
Today, the Internet is overflowing with financial information. People are also very educated. An engineer, for example, could easily find, dissect and understand equations used in finance.
This means that 30- to 40-year-old clients are less likely to give their advisors a blank check. They often form an opinion on investment themselves.
A manager must now more than ever be able to answer his client's questions because he is asked more than before.
The advisor to younger people
Online technologies are attractive to younger people. Still, he feels that the investment advisor and face-to-face meetings are always relevant.
According to him, it is difficult to bypass the expertise of a manager because he has the experience of working with people, knows how to ask the right questions and can interpret their needs.
To develop an investment policy, a strategy, you have to understand the limits of the investor, his tolerance for risk, his needs and that, it does very well from a distance.
Wealth management is also important
Wealth management includes investment management, but also succession planning, legal and tax advice and insurance, among others.
It takes specific advice. This is especially so since the period of the thirties and forties is usually accompanied by important decisions: spouse, house, family. At that point, tax issues, for example, become very important. It's not information that can be taken on the Internet.
