As banks have evolved to serve Millennials and Gen-Z customers, they have hosted digital-first strategies, ranging from digital on-demand to strong financial literacy libraries.
But one area of banking that is still stuck in the past is wealth management. Despite the fact that Millennials are beginning to make up a large proportion of those using investment and wealth management services (even though they control a much lower percentage of wealth in the US than older generations), in particular , Private banks, have not yet developed their offerings to meet the expectations of these young customers.
I have written about the ways the financial industry is changing first, most of them working to connect other businesses with Zen Media’s fintech clients.
So I was interested in hearing the idea from Karam Hinduja, CEO of private bank SP Hinduja Banke Privy. One of his priorities has been to record bank offerings to resonate with the values of new generations of ESG investors, aligning capital development, asset protection and management with a commitment to mitigate sustainability sustainability risks.
He shared some of his suggestions for private banks to succeed with new customers.
Millennial investors are more conservative than many in the industry.
“There is a misconception that the millennial generation is speculative and aggressive in its investment approach,” Hinduja says. “In fact, the new generation of investors is highly strategic and relatively conservative.”
This is borne by the data, which finds that Millennials are more at risk than previous generations.
Millennials and even Gen-Z investors (a group that is growing slowly) are told about the types of services they are really interested in, not to mention financial education and knowledge needed. How to invest conservatively and safely.
Millennials’ interest in sustainability and social responsibility extends to investment.
The millennial generation is famously committed to businesses, efforts and individuals adopting their social and environmental values.
Hinduja himself shares this commitment, and has therefore focused on incorporating social responsibility and sustainability into his bank’s operations and services.
“Today’s investors understand that money is more than just financial returns – that ‘true value’ lies in adhering to social and environmental principles,” he says. Given the risks of the climate crisis and other long-term challenges, any sound long-term investment strategy should regard taking a sustainable approach as the norm rather than the alternative.
Hinduja has sought to partner its bank with individuals, families and businesses, who share their vision, to make the private banking business not only ethical but also sustainable principles, as well as a mechanism for the realization of increasing funds And see as a vehicle.
“Impact Investment” doesn’t go very far
Impact Investment is an approach that is growing in popularity, and has achieved some commendable goals – among them, only to make investors and the general public more aware of how their money affects the world, ethical industries. From to stability.
However, says Hinduja, it is not enough to be an impact investor. This alone does not go very far. “‘Impact’ doesn’t even make sense as a word – it’s just investment,” Hinduja says. “The more our global challenges become, the more we need to raise capital and entrepreneurship. Addressing these global challenges constitutes the largest share of market opportunities for our generation. ”
As the banking, investment and wealth management sectors evolve, we will continue to focus more and more on value-based offerings that Hinduja is already a proponent of. The question for financial institutions going forward will be how they meet the challenge.