Don’t Wait for the ‘Great Wealth Transfer’ – Help Younger Customers Reach Goals Now
Preparing for a future intergenerational handoff may be a fatal distraction for banks and wealth managers. First, the money may not materialize as predicted. Second, younger generations are not waiting – they’re already building their futures on their own terms. Meet their needs now.
By Rachel Darivoff, Strategy Director, Design Bridge and Partners
So, here’s what we know: The "Great Wealth Transfer" is happening… eventually. Boomers and the Silent Generation are going to pass the financial baton (whatever’s left of it) to Gen X, Millennials, and Gen Z. But honestly? We’re kind of in the dark about everything else. Will this happen 15 years from now? Twenty? And how much are we even talking about?
The truth is that nobody really knows.
Older generations are living longer, which is great, but also expensive. Everything costs more. Even if they own their homes outright, healthcare costs are already high and rising. Retirement homes? Home health aides? It all adds up. There’s a very real possibility that some people will spend everything they’ve saved just trying to make it through their final years.
In many instances, most of whatever wealth is turned over will likely go to those who already have some kind of accumulated wealth — meaning this forthcoming transfer may actually perpetuate existing trends of economic inequality rather than a mass democratization bringing more people into the world of "wealth."
While we’re not sure of the exact scale of the transfer, or when it’s going to happen, marketers and financial brands need to start preparing now. Here’s how:
Digital Demands Will Keep Growing
Digitization, innovative features and seamless UX/UI aren’t just nice-to-haves; they’re table stakes. And they consistently drive brand choice.
A striking 95% of Gen Z and 83% of Millennials would consider wealth products from tech giants like Google, Apple, or Facebook.
These are brands that understand the importance of a tech-first, user-centric mentality and are renowned for building holistic experiences. They help people connect different parts of their lives, not just their financial needs.
Delivering a best-in-class digital experience is paramount to attracting and retaining younger clients.
Gen Z, notorious for switching financial institutions, demonstrates this with 42% changing providers within a year in pursuit of better offerings. This trend isn’t limited to the youngest generation; a staggering 75% of Millennials would also abandon their current bank for a superior mobile experience, a stark contrast to the 80% of Baby Boomers who remain loyal to their traditional financial institutions.
However, simply having a digital presence isn’t enough. And great digital design alone can’t fix a flawed product. The digital experience must be exceptional, reflecting the brand’s unique personality and values. The question becomes: how can your brand translate its essence into the digital realm, moving beyond basic functionality to create a truly engaging and personalized experience?
Take SoFi, for example, which has always been about helping people "Get your money right." And its digital experiences have delivered on this promise. There are the basics like simple and clear navigation. And then there are the less obvious things like the use of high contrast colors on the home screen, large type, and minimal copy — all of which make it easy to digest the information they’re serving up, removing the intimidation factor. Additional features like webinars, holistic financial overviews, and personalized articles that teach people how to better manage their "moolah," ensure the brand’s app and site are not just financial tools but brand experiences.
Dig deeper:
- The Kids Are Alright: Youth Accounts Map a Promising Path Forward
- How Affirm, PayPal and Now Musk’s X Money Will Jockey for Gen Z’s Money
Diversification is Critical
"Only 14% [of financial advisors] place a high priority on prospecting for clients between the ages of 18 and 35 (Generations Y and Z) who represent the largest segment of the U.S. population." Big mistake. Huge.
Gen Z? They’re investing earlier than any generation that’s come before, average age they start: 19. And forget your dad’s tired portfolio. They’re juggling Robinhood, Coinbase, Fidelity and somehow still have cash languishing in Venmo or worse, the Starbucks app.
They’re not merely exploring alternative investments; with 80% seeking opportunities in areas like crypto, real estate, and private equity, they’re actively building portfolios in emerging asset classes. In fact, they allocate three times more to these alternatives (16% of their portfolios) than older generations (5%), and significantly less to traditional stocks (25% vs. 55%). This signals a fundamental shift in investment priorities.
Who decided stocks and bonds were the only game in town anyway? This generation is savvy.
So, what’s a legacy financial brand supposed to do? Morph into some crypto bro overnight? Expand their offers to be a one-stop shop? It’s inauthentic and ineffective.
Rather than trying to be everything to everyone, focus on what differentiates your brand. Firms that can identify one simple story about their offering will win. Double down on what you stand for, so you can stand out. Mastercard gets it. Mastercard is leveraging its payment technology expertise to create the first crypto cards, bridging traditional finance with the new digital landscape. Their crypto credit programs allow users to seamlessly spend crypto assets while offering innovative features like crypto rewards and credit lines backed by crypto holdings. This is how brands remain relevant.
Think about it. What do you do better than anyone else, even those shiny new fintech start-ups? Then double down. Own it. Because this new generation craves real solutions and real innovation. By providing these, your brand becomes a trusted partner, not a relic of the past.
Milestones and Financial Priorities Will Look Drastically Different
Deloitte tells us only 40% of Gen Z and 48% of Millennials think their finances are going to improve. Let that sink in. They’re drowning in student loan debt, battling rising credit card balances, and frankly, just trying to keep their heads above water. Financial institutions need to get with the program and address these very real concerns if they want to connect with younger audiences.
And the whole "life milestones" thing? Yeah, that’s changed too. Ask a Millennial or Gen Z-er when they plan on buying a house. You’ll probably get a laugh, or maybe a sigh.
If it’s not a house, what are they saving for? What do they actually want? Because maybe it’s not a college fund. Maybe it’s not kids. Maybe it’s starting their own business, freelancing, culinary school, or something completely different.
Go into any financial services brick and mortar or website and you’ll still see images of what brands think the milestones that matter look like… i.e., that "house key handoff" from broker to couple. Most brands aren’t demonstrating an understanding of these audiences, what they’re striving for, and what drives them. The old playbook doesn’t work anymore. We need a new way of thinking about financial priorities and brands that demonstrate they understand them.
And that requires asking forward-thinking questions, like: How do you help people reach their goals and how can you show that through your brand expression?
Don’t just focus on the typical touchpoints or customer lifecycles. Think more critically about these generations’ financial journeys and identify the moments that matter to them.
Cash App invites consumers to "Control Your Cash" and "Grow your money the way you want." And, through brand led content like the WANNA BUY series, they follow people on a mission to learn about the tools they need to build their dreams, like creating a music video or buying a gaming rig. These aren’t the "dreams" many legacy institutions are familiar with. But Cash App is a brand that deeply understands their Gen Z audience—their goals and drivers—and wants to help them have fun along the way. Now, a legacy brand taking this same approach would fall flat and feel disingenuous — but those that take a cue from these newcomers and find their own way to show a nuanced understanding of Gen Z and Millennial audiences’ financial goals can win.
