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Connecting with Gen D

Accenture identifies four key strategies for wealth and asset managers that are vital to attracting, engaging and retaining Generation D investors.

Overview

While Generation D investors are skeptical toward financial advisors, wealth and asset managers can secure their foothold with them by integrating digital communications into their relationships.

“Gen D” or digital generation investors are not differentiated by their age, but rather by their broad adoption of technology, especially their use of digital and social channels in almost every aspect of their lives. And while Gen D investors are skeptical toward financial advisors, wealth and asset managers can secure their foothold with this group—which represents 75 million investors with $27 trillion in assets—by integrating digital communications into their relationships.

Learn about the four key areas Accenture has identified as being vital for advisors to focus on if they want to attract, engage and retain Gen D investors.

Background

In this digital age, financial advisors must be accessible to clients on their terms, and according to a recent Accenture study, wealth and asset managers have work to do in this area. Findings revealed that while 59 percent of investors sought financial advice, only 40 percent turned to their financial advisor for help. Instead, these investors turned to investment websites, online videos and webinars. The study also found that when Gen D investors do consult their financial advisors, a surprising disconnect exists between the advisor’s perception and the investor’s reality.

Because Gen D investors are “always on,” advisors can gain the critical upper hand by integrating digital communications into their relationships.

Recommendations

Accenture has identified four key areas of focus for wealth and asset management firms to employ that are vital to attracting, engaging and retaining Gen D investors:

  • Customer analytics. Gen D investors expect their financial advisors to be responsive and proactive. Wealth and asset management firms armed with real-time and predictive analytics can better address these investors’ needs and expectations, especially within the digital environment. Firms can also gain a deeper understanding of their clients’ portfolios and identify next steps.

  • Self-directed tools. Of the investors surveyed, 65 percent view themselves as entirely self-directed or partially assisted, while only 35 percent said they use a financial advisor exclusively. Firms that offer effective, interactive tools for investing will be at the forefront of cultivating and maintaining relationships with Gen D investors.

  • Community connections. Gen D investors interact with a firm through social networks, the firm’s website, its competitors’ websites and in blogs. Successful firms continually reevaluate their social media strategy to ensure they are intentional about how they are optimizing brand experiences.

  • Gamification. Gamification provides firms the ability to offer a more interactive and differentiated customer experience by incorporating a game-like range of features, such as challenges, contents and rewards into investment activities.

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