By Gemma Livermore, Head of International FS Marketing at Seismic
The great wealth transfer is already underway, with an estimated $84 trillion in assets passing down from one generation to the next, marking one of the most significant financial transitions in history.
Currently, 50% of inheritors choose to drop their parents’ financial advisor. Where retention hangs in the balance, it’s critical that firms act now to connect with the children of their current clients, and that includes catering to an entirely new demographic.
In less than five years, a considerable share of this wealth will be inherited or otherwise acquired by women. Between 2018 and 2023, the amount of wealth controlled by women worldwide rose by 51%, and women are set to gain control of $20.7 trillion in financial assets.
These figures highlight a golden opportunity for the finance industry, but it’s up to financial firms to ensure they have the right models and technology to deliver a more personalised client experience, one that aligns with today’s evolving wealth management priorities.
Filling the confidence gap for women
Women’s financial autonomy is a relatively recent development. As little as 50 years ago, women couldn’t legally open bank accounts without a male cosigner. This systematic exclusion has created lasting effects, especially among women now entering higher wealth brackets for the first time, whether it be through inheritance, entrepreneurship, or earning significantly more than previous generations.
For many women, this shift into financial leadership comes with limited prior exposure to managing substantial assets. But today’s female wealth holders bring different perspectives and preferences to the table than their male counterparts, as they tend to be more purpose-led, risk-aware, and focused on long-term security than quick wins. In a recent M&G study, it was revealed that men had a more optimistic outlook on the market, with 48% expecting positive growth compared to 39% of women. Women also demonstrated greater caution, with 30% anticipating a decline in the market, compared to 23% of men.
On top of this, women feel unprepared for their newfound positions of wealth. Citizens Bank research found that 84% of women lack confidence in their ability to manage money from an inheritance or financial windfall. Roughly half of women report feeling confused or overwhelmed in handling their financial wealth, compared to only 27% of men. This uncertainty frequently leads women to keep their money in cash savings – a safe bet, but ultimately ineffective for wealth growth.
Given this difference in financial exposure and experience, the traditional “playbook” for advising clients will likely fall short. Advisory models need to change, and the tech used to support those relationships must evolve to deliver more relevant and value-aligned services at scale.
Building trust: Millennials and Gen Z
Conversely, Millenials and Gen Z individuals are experiencing low confidence in their financial well-being as economic headwinds, like higher cost of living and student debt, impact their sense of financial stability. Many are struggling to build long-term wealth, invest confidently, or even meet day-to-day expenses. According to Deloitte, 56% of Gen Z and 55% of Millennials report living paycheck to paycheck and nearly 30% say they don’t feel financially secure overall.
These pressures are fueling a growing demand for accessible, transparent, and empathetic financial guidance. Unlike previous generations, younger investors are less likely to rely on traditional advisory firms and more likely to seek information online, through apps, social media influencers, and peer communities.
This requires more than a simple tweaking of communication style. To meet their needs, financial institutions must deliver value and advice where these individuals are already looking, through mobile-first platforms, social media engagement, and hyper-personalised digital experiences that build trust, relevance, and empowerment from the get-go. Companies also need to look at prioritising listening over selling, putting empathy over jargon, and focusing on goals over products in their client engagement strategies.
Tech as a strategic enabler
As a new wave of digital native wealth holders enter the market, expectations around experience, immediacy, and relevance in financial services are rapidly evolving.
Aware of the capability tech has in enhancing experiences, they seek advice that is intuitive, on-demand, and delivered in a highly personalised manner. According to CEG Insights, 66.5% of Millennials and 50% of Gen Z consider AI-generated investment suggestions to be an important feature in their financial journeys. To truly meet the needs of today’s investors, intelligent tech must be used to enhance financial services and human connections between investors and advisers.
Digital platforms that leverage behavioural data, life-stage insights, and ethical investment preferences can help advisors tailor recommendations in ways that resonate deeply with these clients. It can help map out long-term goals visually, surface timely content aligned with client priorities, or use smart tools to guide collaborative decision-making.
When used strategically, these digital tools can enhance the personal element of financial advising by delivering content in accessible, user-friendly formats and providing insights into client engagement. The analytics and behavioural signals that follow reveal the themes that matter most and help maintain consistent, transparent communication throughout the financial journey.
Lead the change
The face of wealth ownership is changing, and cultural and economic transformation is already happening.
As new demographics assume control over growing levels of wealth, it’s essential that financial advisors, and the industry at large, adapt their approaches to reflect the distinct goals and priorities of these clients.
With a digital-first advisory model that incorporates data-driven insights and inclusive guidance, businesses can actively support this new generation of investors and ensure relevant and responsive services for digital natives.
