Utilising AI and digital capability to bridge the intergenerational learning gap in Financial Advice

In financial services, a silent shift has been unfolding—one that, if left unaddressed, threatens the industry's ability to engage and retain future generations of clients and advisers alike. The intergenerational learning gap and staff attraction/retention have become defining challenges, requiring innovative thinking, technology-driven solutions, and a fundamental shift in how financial advice firms communicate and deliver value. 

The Changing Face of Financial Advice 

Addressing intergenerational client needs is something Tony Beaven, Managing Director of The Guild of Ethics, Culture & Leadership, believes is still an issue in the industry. 

Back in 2016, Beaven was CEO of Elders Financial Planning and noticed a gradual but undeniable change in the demographics of financial advisers and their clientele. The global average age of advisers hovered between 56 and 58 years, with a minimal influx of younger professionals into the advice industry. 

To address this worrying trend we launched an educational scholarship program to attract and train the next generation of financial advisers while ensuring that our current advisers had the support mechanisms to stay with the organisation. 

At the same time, an even more worrying scenario started to evolve regarding the age of our client base, with an increasing percentage of Millennials and Gen Zs seeking financial guidance. 

Increased generational wealth transfers meant advisers needed to build relationships with heirs—many of whom had different priorities, expectations, and digital habits than their predecessors, and an unquenching thirst for educational information. 

The New Expectation: Education Before Engagement 

Unlike their parents, younger clients were digital natives—accustomed to having information at their fingertips. Before engaging with an adviser, they expected to be wellinformed, requiring accessible and digestible educational content on financial products, strategies, and wealth management principles. 

Accommodating intergenerational needs presents a unique challenge, as traditional advisory firms often lack the communication infrastructure and marketing automation necessary to meet these evolving client demands. 

The Digital Imperative and COVID-19’s Wake-Up Call 

Fast forward to the COVID-19 pandemic, and by the end of 2020, online engagement had surged by 60% globally among Millennials, Gen X, Y, and Z. Despite this shift, many advisory firms lacked a structured digital engagement strategy. The perceived costs and time constraints of building this often deterred businesses from embracing automated marketing and communication solutions. 

Recognising this intergenerational gap, Beaven stated, "We took a different approach to the evolving trend. We partnered with a technology provider to build a digitalised marketing and communication system capable of delivering timely, relevant, and thought-provoking educational content to our customer base in under 20 minutes." 

The result? Increased client engagement, higher referral rates, and improved retention across generational segments. 

Creating and implementing a seamless, automated communication platform that delivers educational content within minutes—offering insights, market updates, and tailored education to clients across all age groups—revolutionised the business while strengthening relationships with long-standing clients who previously only heard from their adviser once a year at policy renewal time. 

A Cost-Effective Competitive Advantage 

Many organisations hesitate when creating digital frameworks due to the perceived high costs involved in the initial creation and ongoing running of the digital communication platform. In reality, it's the opposite. 

Initial set-up costs were virtually nil, and ongoing costs were $200–$250 per month—yet the return on revenue was substantial. By leveraging automated education and engagement, we not only demonstrated the value of financial advice but also attracted younger clients who wanted more educational information before making an informed choice, as well as younger advisers who wanted to provide their clients with more educational material and align with their needs. 

Future-Proofing Financial Advice 

One undeniable truth in business is the need for continuous improvement. By embracing digital technology, advisory firms can bridge the intergenerational learning gap, ensuring they remain relevant and competitive in an industry facing rapid demographic and technological transformation. As we move forward, the question is no longer if the industry should adapt, but how quickly it can implement the necessary changes to stay ahead. 

The future of financial advice businesses depends on it.

If you wish to learn more about How to retain existing clients and attract new intergenerational clients feel free to reach out to us for a confidential discussion on how we can help your business