February 21, 2024



It turns out that being glued to your phone and constantly refreshing for new updates is a personality trait shared by the TikTok generation and high-income wealth management clients.

The Weston, Mass.-based report was released last week Fintech company Advisor360° Mass affluent and high-net-worth individuals are more willing than ever to engage with advisors and financial institutions online, research finds.

For example, 69 percent of 2,000 investors surveyed in the firm’s client-side version Connected Wealth Report Say they spend more time checking accounts online today than they did two years ago. Additionally, 74% of respondents said they check their portfolios through their advisor’s client portal at least weekly; 33% of Gen Z and younger millennials do so daily in their accounts.

Understanding the online behavior of the next generation is especially important for consultants considering their technology strategy. Trillions of dollars are expected to change hands Over the next two decades, it was considered by many to be “the great wealth transfer”.

A new research report from financial planning parent company Arizent titled “Capture the next wave of customers“In addition to being eager to participate, young investors also need the attention of advisory firms.

Among the entire survey object, “new investors” under the age of 27 accounted for only 7% of its total customers, while “new investors” aged 27 to 44 accounted for only another 20%. However, “some of them will benefit from the first stage of wealth transfer,” the report said.

Research shows that offering more ways to engage is also important. While older clients typically have more wealth and prioritize retirement and estate planning, younger clients can learn from basics like planning for college and student loans, buying a first home, asset security and even budgeting and starting investing. benefit from the recommendations.

Richard N. Hart, senior vice president of corporate development at Advisor360°, said the purpose of its analysis was to better understand the role of technology in facilitating the advisor-client relationship from the client’s perspective.

The survey results send a clear message: People who hire financial advisors are not interested in being their own investment managers. While they want to stay connected to advisors and assets at all times, clients rely on advisors to do the “heavy lifting”.

“They’re entrusting their financial wealth to an advisor, so they don’t want to do these self-services…they want the advisor to actually provide them with these services,” Hart told us financial plan. “Face-to-face is still very, very important for generations, especially older ones. It makes a lot of sense. Money is personal and they want to have that personal connection.”

The survey was conducted by Coleman Parkes Research On behalf of Advisor360°, a survey of 2,000 mass HNWIs and HNWIs with at least $250,000 in assets under management was conducted in April and May 2023. The average assets managed by survey respondents was $568,342.

A quick look at the key findings of the study Advisor360° Connected Wealth Report: Client Version.