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Written by: James Green | deVere Group
Reaching Gen Z – How and Why
Gen Z, the cohort born between the mid-1990s and early 2010s, is already a major player in the workforce, bringing with them significant economic potential.
By 2030, their global income is expected to reach $33 trillion, representing more than a quarter of the world’s total income.
The transfer of wealth from Baby Boomers and Generation X and Millennials and then Gen Z is projected to exceed an unprecedented $68 trillion over the next few decades.
As they increasingly earn and manage their money, they will seek financial advice more than ever. Engaging with them early can lead to long-term client relationships that grow as their wealth increases.
Gen Z’s financial attitudes have been shaped by witnessing significant economic instability, including the 2008 financial crisis and the economic impacts of the COVID-19 pandemic.
As a result, they’re typically more cautious and pragmatic about money compared to previous generations. They prioritize saving, budgeting, and avoiding debt. Financial advisors who understand these attitudes and can offer tailored advice are more likely to attract and retain Gen Z clients.
As digital natives, they’ve grown up with tech integrated into all aspects of their lives. They expect seamless digital experiences and are comfortable using online platforms for financial management. Financial advisors need to leverage digital tools and provide services that meet these expectations, ensuring convenience and efficiency.
How to engage Gen Z
As we all know, Gen Z spends a considerable amount of time on social media platforms such as Instagram, TikTok, and YouTube. To reach this audience, financial advisors should create engaging content that is tailored to these platforms.
This includes short, informative videos, interactive posts, and collaborations with influencers who resonate with Gen Z. Such content can provide valuable financial tips and insights, helping to build a connection and establish credibility.
Education is highly valued, especially when it comes to managing and boosting their finances. Financial advisors should offer accessible educational resources that demystify complex financial concepts. Webinars, online courses, blogs, and podcasts can be effective tools for educating this demographic.
By positioning themselves as knowledgeable and trustworthy educators, advisors can build strong relationships with Gen Z clients.
To attract Gen Z, financial advisors must integrate advanced technologies into their services. This includes offering mobile apps for easy account management, using AI-powered financial planning tools, and providing virtual consultations. Such tech not only aligns with Gen Z’s expectations but also enhances the personalization and efficiency of financial services.
Ethical and Sustainable Practices
This cohort is known for its strong sense of social responsibility and preference for ethical practices. Those in our sector should highlight their commitment to sustainability and ethical investing. Offering investment options that adhere to environmental, social, and governance (ESG) criteria can appeal to Gen Z’s desire to make a positive impact through their financial decisions.
And as with all clients, clear, transparent, and frequent communication is crucial in building trust. Advisors should maintain open lines of communication, providing regular updates and being readily available to answer questions. This really gives a sense of security and trust, essential for long-term client relationships.
Reaching Generation Z is not just about adapting to a new set of client preferences; it’s about future-proofing your practice in a rapidly changing financial environment. Engaging with them effectively will position advisors for continued success and relevance in the evolving and competitive industry.
Related: Tech Is Democratizing Advisories: Benefiting Clients, Society and Firms