Cisco Internet Business Solutions Group (IBSG) released findings from a study that highlighted an opportunity worth $31b, with wealthy investors 55 years or younger.
The study revealed how investors engage with their financial advisers, and how advisers can enhance their revenue and retain wealth in their portfolio by becoming technologically savvy and attracting younger investors.
Wealthy investors aged 55 and younger represent about 40% of global investable assets, according to Cisco.
While only 5% of older investors are planning to change their primary adviser in the next year, 20% of younger investors plan to make the change.
To win over these young clients and your share of $31b, research encouraged higher-quality customer interaction, including videos.
More than half of the investors under 55 would consider moving a portion of their assets to a firm that offered technology-based services, including video as a way to connect.
“With the right technology-enabled approach, financial advisers can create a significantly improved customer experience resulting in more frequent and higher quality interactions that will boost customer loyalty and that will even attract wealthy investors who currently do not have an adviser,” said Cisco IBSG vice president and global lead Jӧrgen Ericsson.
It was also revealed that advisers should increase their interactions with families of clients, as the majority of a client’s assets leave the adviser when the second spouse passes.
The study interviewed more than 1,200 investors with at least $500,000 in investable assets.
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