Global Consultancy
Bridging the Intergenerational Gap in Global Financial Services
0
0
0
The Global Intergenerational Learning Gap in Financial Services
In 2016, while leading a national dealer group, I observed a gradual shift in the demographics of our financial advisers and clientele.
The average age of advisers globally was between 56 and 58 years. As we now see in Australia, the influx of younger advisers was minimal. To address this issue, we initiated an educational scholarship program aimed at increasing the number of young advisers entering the industry.
The changing demographics of clients, both in Australia and globally, were also a significant concern. Younger clients, starting new jobs and joining pension schemes, began to emerge.
Additionally, substantial shifts in family wealth, bequeathed to extended family members, necessitated advisers to build relationships with new family members who had different priorities and requirements.
We recognised that younger clients, particularly Millennials and Gen Z, were more active online and technologically savvy. They demanded more information at their fingertips before making decisions. They also sought to fully understand the parameters of financial products and services, preferring to be educated and informed before meeting with an adviser.
This presented a challenge that still persists today: many advisory businesses lack the communication and marketing automation necessary to provide the educational material that satisfies Gen Z and attracts new intergenerational clients.
Imagine a communication and marketing platform that delivers digital and automated educational material to all clients within 15 minutes.
Achieving this would be akin to reaching Valhalla, attracting not only Gen Z and Millennials but also retaining risk back book clients who typically only received an annual phone call upon renewal notice, despite experiencing numerous life events throughout the year.
Fast forward to the COVID-19 pandemic in 2020, and we observed a 60% global increase in online usage among Millennials, Gen X, Y, and Z. Despite this surge, many advisory businesses still lack an active communication strategy to retain and attract intergenerational clients.
Often, the perceived costs and time constraints deter businesses from aligning their marketing and communication strategies to meet this need.
When addressing this imperative, we took a different approach. We partnered with a technology company to create a digitalised marketing and communication systems capable of sending regular educational articles and insights to our entire customer base at the touch of a button, well within 20 minutes.
These thought-provoking articles resonated with our clients, generating interest and a significant increase in referrals.
We also targeted our risk clients, demonstrating the value of the renewal commissions advisers received. This approach led to increased referrals and attracted younger clients and advisers who valued educational material for their clients.
This helped build relationships and met the need for more knowledge before making informed choices.
The initial cost was zero, with ongoing costs ranging from $200 to $250 per month, resulting in a significant return on revenue.
One key lesson in running a business is the constant need to adapt to stay competitive.
This often involves revising strategies to accommodate the needs of existing and potential clients. It requires examining advice processes, frameworks, and customer interaction points, and automating functions where possible to add value to clients and create efficiencies for the business.
Tony Beaven is the Managing Director of The Guild of Ethics, Culture & Leadership a global consultancy business helping individuals & financial services organisations, and diverse industries to the next stage in their growth development.
Consultancy & Leadership Mentoring Solutions | The Guild of Ethics, Culture & Leadership
Related Posts
