That’s the thesis of a white paper out by UBS. According to the Swiss bank, Wall Street is at the precipice of a massive transfer of wealth, the likes of which has never been seen.
Older millennials are approaching “peak income” age and Baby Boomers, the generation born following WWII, are set to pass on trillions of dollars of wealth in the coming years to younger generations.
In just three years global millennial wealth could stand at $24 trillion, according to UBS, up $7 trillion from 2015.
Millennials are about to benefit from “one of the largest intergenerational wealth transfers in history,” according to Tom Naratil, president of UBS Americas, and Jürg Zeltner, president of UBS Wealth Management.
As such, the bank believes “it is critical” that Wall Street firms pay attention to millennial-specific tastes when it comes to wealth management.
Following are the three preferences the bank thinks Wall Street firms should consider when shaping their offerings to attract people in the millennial generation.
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Whether its a ride to the airport or every episode of their favorite show, millennials are accustomed to getting what they want when they want it. According to UBS, millennials want that same on-demand service for their finances.
“Millennials are more than twice as likely as Baby Boomers to demand a mobile banking service that allows for financial advice to be delivered by in-app chat or via video conference,” the bank said.
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It’s no secret that millennials want to be able to access their finances via their mobile phone. But that doesn’t mean financial firms should close their physical branches en masse. According to UBS, millennials utilize their local branches. In fact, they do so even more than Baby Boomers.
“Millennials also visit branches nearly twice as often as Baby Boomers (29 times against 16 times respectively), and engage with a broker or agent three times as often as Boomers,” the bank said.
As such, financial firms that offer their services through both digital and traditional channels are best positioned to attract millennials, according to the bank.
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Millennials are the least private generation. Generally speaking, they don’t mind when firms collect data about their habits, purchases, and google searches so long as it translate into higher quality services and products. This trend extends to financial services, according to UBS, and Wall Street firms should take advantage.
“23% of millennials would be willing to share their cell phone number, 21% their purchase history, and 15% their household income (compared to 11%, 12%, and 6% respectively for Baby Boomers),” the bank said, citing a study done by the University of Columbia Business School.