Pershing urges wealth businesses to adapt for generations X and Y

Date: 15 Apr 2013


Pershing Limited, a BNY Mellon company, used its recent client adviser council to urge advisers to recognise the importance of attracting generations X and Y as customers to ensure the future success of their businesses.

The event was held at Lower Slaughter Manor in the Cotswolds, as part of Pershing’s practice management programme, designed to help clients grow their businesses. During the council, Pershing outlined the differing needs and expectations of generations X and Y and offered the audience a range of strategies to help them engage and cultivate relationships with this audience, such as enhancing their web presence, hiring younger advisers and moving communications from paper based to electronic format.

Pershing advised that while baby boomers are currently the focus for advisers, the needs of the next opportunity wave ‚Äì generations X and Y investors ‚Äì are often neglected. Generations X and Y tend to be less satisfied with their current advisers and, if they inherit wealth from parents, they almost never keep those assets with the parents’ adviser. The assets and influence of these investors are increasing year by year, making them an essential market for wealth businesses that want to position their firms for long-term success.

Pershing used three demographic groups to explain behaviour and attitudes: Baby Boomers, aged 47 and above, which is the group of investors many wealth firms currently focus their efforts on; Generation X, aged between 32 and 46, who are poised to inherit large amounts of wealth over the coming years; and Generation Y, aged 32 and below, the group that has been most impacted by technology and is also most wary of the ‘middleman.’

Commenting on generations X and Y, Paul Bayliss, director and head of wealth and adviser solutions at Pershing, says: “Wealth businesses that are thinking about growth over a longer time horizon than the lifespan of their current client base need to carefully consider how they will attract and serve generations X and Y investors.

“The key to cultivating relationships is to invest in talent, technology and personalised approaches that can overcome the lack of trust prevalent among these groups and position the client adviser as a useful resource and straight-talking counsellor. Such approaches will strengthen a firm’s ability to attract a range of underserved investor groups and diversify their client base.‚Äù

The Client Adviser Council is the second of its kind to be held by Pershing in the UK. These events are part of its practice management programme to help business owners and executives to address the major issues affecting the growth of their business.

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