The wealth management industry has long prided itself on the bedrock of personal relationships. For generations, the trusted bond between adviser and client has been the cornerstone of our profession — a human-centric approach that has, at times, made us wary of technological innovation.
However, as we stand on the precipice of a monumental shift, Great Wealth Transfer, it’s time to re-evaluate this perspective.
Our future clients are already here, and they bring with them a fundamentally different set of expectations and values.
The recipients of this influx of wealth are primarily millennials and Gen Z, who are also digital natives. They expect technology to be seamlessly integrated into every facet of their lives, and their financial experiences are no exception.
Yet, to assume their digital fluency translates to a desire for purely transactional, automated financial interactions would be a miscalculation.
Our future clients are already here, and they bring with them a fundamentally different set of expectations and values
While they are undoubtedly digitally savvy, they also deeply value community. The challenge, and indeed the opportunity for financial advisers, lies in understanding how to harmonise these two seemingly disparate forces.
Finding community in technology
For the next generation, community is more than a physical gathering; it’s an intricate digital tapestry. Their social fabric is woven into the very technology they use daily.
Whether discovering music through peer-driven recommendations on Spotify, scrolling TikTok for tips curated by real people rather than algorithms, or turning to influencers for financial advice, this generation actively engages with — and places trust in — their digital communities.
While providing them with technology is essential, it’s the community behind it that makes it “sticky” for them. This isn’t about technology replacing the human element; it’s about technology enhancing it.
Instead of viewing AI and digital tools as threats, we should see them as powerful enablers for strengthening client-adviser relationships and fostering a sense of belonging.
How Gen Z is changing the face of wealth management
The power of technology lies not just in efficiency, but in its capacity to facilitate and amplify connection, creating new avenues for interaction and engagement that resonate with this digitally native, community-driven generation.
Keeping the community in wealth management
The enduring power of the client-adviser relationship has historically been rooted in emotional connection, not just financial performance.
In an era where robo-advisers and DIY investment platforms offer accessible entry points to investing, a baseline understanding of financial markets is becoming increasingly common.
Younger generations often arrive with foundational knowledge, capable of managing their own investments to a degree. In this landscape, the human connection with an adviser becomes the ultimate differentiator.
As advisers adapt their approach for younger clients, the key is to strike a delicate balance: embracing technology without sacrificing the very community that makes wealth management valuable.
This means building relationships where technology is not an afterthought, but an integral part of the client journey.
AI tools, for example, can be leveraged to personalise communication, anticipate client needs and provide proactive insights, enriching client-adviser interactions rather than diminishing them.
We need to consider offering more frequent, diverse touchpoints beyond traditional quarterly reviews.
This could involve virtual workshops, digital forums or interactive content that fosters a sense of shared learning and collective engagement. Build a community that millennials and Gen Z genuinely want to be a part of.
The changing shape of investors
The Great Wealth Transfer isn’t the only thing defining the shifting investor demographics.
Technology is also democratising access to wealth management, opening doors to a new segment of clients who historically haven’t had the same access to sophisticated advice and tools as ultra-high-net-worth individuals. This includes individuals with assets ranging from £300,000 to £3m.
For the next generation, community is more than a physical gathering; it’s an intricate digital tapestry
Historically, this group may have found themselves in a service gap, too affluent for basic retail offerings but not meeting the traditional thresholds for bespoke wealth management.
However, with the application of AI tools and digital platforms, advisers can now efficiently and effectively serve this expanding demographic. This doesn’t mean a move towards impersonal, transactional interactions.
Instead, it offers an opportunity to provide tailored advice and support to a broader audience, ensuring that the adviser-client relationship remains at the heart of the experience, even as technology expands our reach and capabilities.
The digital-first world doesn’t threaten the concept of community in wealth management. It influences its evolution.
By understanding how the next generation interacts with and values community through technology, financial advisers can leverage these tools to deepen relationships, expand their client base, and future-proof their practices.
The human element will always be crucial, but in a world increasingly shaped by digital interactions, our ability to foster genuine community within those digital spaces will be the true mark of enduring success.
Sneha Shah is executive vice president and head of new business ventures at SEI
