How Financial Institution Leaders Can Prepare for the Largest Generational Wealth Transfer
With Michael Wilson, Managing Director of Wealth Management of First Citizens Bank; Tori Phillips, Vice President of Digital Products & Strategies of BOK Financial; and David Benskin, Founder and CEO of Wealth Access
A recent report from Coldwell Banker forecasts Gen Xers and Millennials will receive more than $68 trillion in inheritance passed down from Baby Boomers. This indicates the largest inter-generational wealth transfer in history, yet financial leaders remain unprepared to serve this younger, digital-first demographic. As new beneficiaries emerge, FI leaders must position themselves to retain and attract their business. Intuitive digital tools set up to manage accounts and implement relationship strategies will become paramount for financial institutions aiming to win business with the rising generations.
First Citizens Bank Managing Director of Wealth Management Michael Wilson, BOK Financial Vice President of Digital Products & Strategies Tori Phillips and Wealth Access Founder and CEO David Benskin spoke with us to share deeper insight on how FI leaders can prepare for this transformative financial landscape shift.
How can financial institutions strengthen their position during this generational shift?
Wilson: FI leaders must develop deeper relationships with the families they serve well ahead of wealth transfers. We can begin establishing trust and familiarity by investing interest and time into our clients’ children. We must strengthen our ties within the families currently served to ensure we have strong relationships in place with the soon-to-be primary account holders. FI’s that work to proactively understand the financial habits and outlooks of Millennials and Gen X will experience the most success in building connections with rising generations.
Phillips: The wave of generational wealth transfer signifies a change in the demographics and outlook of a financial institution's targeted audience. The rising generations think differently and approach their financial management in a distinct way as well, which sets them apart from their parents or grandparents. FI’s hoping to retain and attract rising account holders must pivot their current strategies to better connect and communicate using the methods preferred by incoming generations. Millennials and Gen Xers often like to communicate at their convenience and appreciate having the ability to connect as they see fit through in-person, mobile and digital channels.
