How can today’s Millennial investors drive tomorrow’s business growth?

Wealth managers have the opportunity to build trust with this vital client group, especially in times of increased market instability. 

EY LAW - The 2023 EY Global Wealth Research Report highlights the desires and behaviors of wealth management clients around the world. The research covers more than 2,600 clients spanning continents, age groups and wealth levels. More often than not, it is Millennials who stand out from the crowd.

Most obviously, Millennials consistently show a greater appetite for advice than older clients, reflecting the fact that the majority of this cohort is still growing their wealth and has a longer path to reach their financial goals.

That’s just the beginning, however. The findings show that Millennials have many striking trends that cannot be explained simply by their shorter duration of investment experience. Some of the most notable are:

More likely to switch: Millennials are more than twice as likely (73%) as Boomers (29%) to switch between providers, move assets between firms or start working with new wealth managers. They are also much more likely (49%) than the global average (33%) to have sought independent professional advice in response to external shocks.
Greater appetite for risk: Millennials are 20% more likely than the average client to invest in alternative investments, 16% more likely than average to contribute to actively managed investments and three times more likely than older cohorts to use digital wallets.
Demand for digital: 32% of Millennials see a strong digital offering as important when selecting a wealth management provider, second only to a good performance track record (34%). Millennials are also more likely (59 %) than average (40 %) to look for a wealth manager that continually enhances its digital platforms with feature enhancements.
Greater interest in ethics and sustainability: when selecting a wealth management provider, Millennials place a higher-than-average emphasis on sustainable investment options (20% vs. 8% of Boomers) and diverse teams (16% vs. 5% of Boomers). 

ey.com