In a video interview, Steven Seow of Mercer says wealth managers need to be aware of – and able to deliver on – the expectations of the more demanding younger generation, to make the most of this growing opportunity in Asia.
When servicing the wealth-related needs of Millennials – generally referring to individuals between the ages of 18 and 35 – it depends on which type of Millennial one is dealing with.
According to Steven Seow, head of wealth management for Mercer in Asia, there are three main types: those which have just graduated and have started work for the first time; those who have been working for several years and have become ‘professionals’, in their early 30s, and often mass affluent clients; and those who are coming up to the age where they might be taking over a family business or running a family office.
In all categories, Millennials are generally quite under-served, says Seow, especially in Asia.
But given the different mind-set of this younger generation of asset owners, wealth managers need to take a different approach to servicing them, advises Seow – and one that is about more than just relationships.
For example, when Millennials evaluate a service provider, they expect the adviser to demonstrate in a first meeting the sufficient competency, sincerity and what they can bring as part of the wider organisation, he explains.
More specifically, Millennials are demanding in terms of expectations around speed and technology.
For instance, Seow says that while they don’t expect regular face-to-face interactions with their wealth manager, they do want to get access to information when they want it and from wherever they might be.
As a result, to make the most of the opportunity with this segment, wealth managers need to be aware of the differences in expectations from first-generation clients – and they need to be able to live up the higher standards required.
Head of Wealth Management, Asia at Mercer