New research from Invessed in collaboration with YouGov highlights a critical challenge facing the wealth management industry: its struggle to engage younger investors. The findings from Invessed’s “Defining Wealth for a New Generation” report underscore an urgent call for innovation to meet the needs of this emerging client base.
The survey, conducted between February 29 and March 1, 2024, with 2,068 UK adults, reveals a significant disconnect between traditional wealth management practices and the preferences of younger generations. Notable insights include:
- 56% of young investors avoid professional advice due to high fees and outdated approaches.
- 51% of respondents feel they lack control over their finances, indicating a financial literacy and engagement gap.
- 63% of female respondents are uncomfortable with basic investment principles, with 72% not actively monitoring their investments.
- 47% of participants save little to no income, indicating poor financial habits and future preparation.
The eye-opening figures highlight the significant opportunity for asset and wealth managers to engage with younger investors. Invessed is uniquely positioned to help rejuvenate the wealth management sector by enabling its clients to build stronger relationships with this demographic, driving business value and supporting sustainable growth. The company’s secure client portal and mobile application provide comprehensive wealth reporting tools that simplify financial oversight and enhance transparency.
Invessed’s cloud-native platform streamlines wealth management processes with a scalable, modular approach. This enables asset managers to quickly adapt and integrate new functionalities, providing consistent, customisable digital services. Invessed’s platform is helping its clients overcome the challenge of lengthy development cycles, simplifying complex integrations and maintenance. What’s more, unlike competitor platforms, Invessed’s platform helps clients manage wealth at scale.
Even before this latest research, the company’s entry into the market looked extremely timely, with an estimated $84 trillion poised to transfer from Baby Boomers to younger generations in the coming years. The wealth management sector must evolve rapidly to capture this shifting market. Built-in direct response to this concern, Invessed’s user-friendly solutions are designed to simplify interactions and enhance financial oversight, addressing the critical disconnect highlighted by the survey.
Theo Paraskevopoulos, CEO and Founder of Invessed commented: “If the asset and wealth management sector continues to deter younger investors, we risk deepening the generational economic gap. Younger investors need to access professional support to build and manage wealth, but this won’t happen if outdated practices persist. Invessed was built to address these challenges and ensure wealth managers can meet the demands of the next generation, fostering engagement and supporting sustainable growth.
“Ultimately, as this demographic matures and begins to inherit wealth, they represent a crucial customer base that must be engaged. This is why now is the opportune moment for innovative solutions like Invessed to revolutionise the asset and wealth management industry. We are committed to becoming a pivotal player in modernising and future-proofing this important sector, ensuring that our clients can more effectively align their offerings with the evolving needs of the next generation.”
