What the Financial Services Industry Can Learn from Their Youngest Clients

What the Financial Services Industry Can Learn from Their Youngest Clients

Kids these days! They love their interwebs and their snappy-chatty apps. They love instant access to data. They love having control over virtually every aspect of their lives, whether that’s hailing an Uber or pre-ordering that latte from Starbucks, so it’s ready when they walk in the door. And guess what? They also love to be self-sufficient, especially when it comes to interacting with traditional financial services firms.

This may sound trite. But it’s true. The millennial generation have grown up with on-demand everything. So it stands to reason that when traditional industries like financial services, look for new customers from this demographic they quickly find that they need to adapt to appeal to a new generation or risk becoming irrelevant. I mean, who wants to talk to people they think are behind the times? Certainly not this generation “Daddio”. See what I mean?

Some companies get this, but some have not. They are running on outdated methods and not taking the appropriate measures to match their audience. These are the firms that risk losing out on a whole crop of clients.

So what can financial firms do to stay relevant and in demand?

Here are a few examples we can all crib from:

  • Focus on data and rely on behavior-based segmentation rather than traditional techniques based on age, wealth, and risk
  • Deliver the full capability of the firm on-line, rather than focusing on the relationship between the high net worth individuals and wealth managers.
  • Use data on multiple channels from across the cloud (email, social, etc.) for a more integrated experience rather than a single face-to-face relationship.
  • Use gamification and shift toward a goals-based approach to wealth management rather than suggesting simple products like equities, bonds, and mutual funds.

Bold advice, right?

After all, taken at face value, these strategies imply a change from relationship-based to a relationship based on utility. That’s a big shift!

Let’s be clear, role of wealth management is rapidly changing. It is moving away from the old school “stock broker mentality” and towards a self-service, data-driven approach to financial planning. With the transition already underway, only the financial services firms who can keep up will rise to the top.

To hear more about these trends and stay ahead of the curve, register for our webinar “Cloud Adoption Trends in Financial Services” where you’ll hear from leaders such as Nucleus Research, Salesforce and Informatica.