White paper provides roadmap for attracting Gen X, Y and Z clients

The new whitepaper, “Gen Why? How to Succeed with Younger, HNW Clients Who Question Everything ,” offers advisors insights on how to win business from young, high-net-worth clients. The paper was put together by Pershing, a BNY Mellon company.

Attracting young investors requires adjustments to both marketing strategies and business models, according to Pershing. The findings are based on an examination of the demographic and psychological factors that inform decision among investors from Generations X, Y and Z who have between $5 million and $25 million in assets to invest. The paper identifies key commonalities among this group.

“Younger generations are poised to earn and inherit significant wealth in the years to come,” said Pershing’s Katie Swain. “For advisors looking to attract and retain young HNW clients, rapid response times, authenticity and complete transparency, along with technology and social media savvy have all become absolute requirements.”

For advisors, tapping this young market is critical, with billions at stake as these generations accumulate wealth throughout their lives.

Among the takeaways for advisors, Pershing highlights the importance of time management; tapping mobile and online channels; addressing social responsibility and avoiding the old pitches that have worked in the past. Being interactive is more appealing to young investors, and such vehicles as podcasts, short videos and objective information that is of value to the investor will work better than a sales pitch.

“A seamless digital experience and distinct brand recognition are increasingly critical to building a successful advisory business,” said Gabriel Garcia of Pershing Advisor Solutions. “In reaching younger clients, advisory firms would benefit from looking at the business models of retail and technology companies like Amazon, as well as branding approaches of iconic luxury brands like Ritz-Carlton and Rolex.”

With 23 offices across the globe, Pershing’s broad solution set include applications for investment and retirement, clearing and custody, data management, trading services, prime brokerage and consulting.