Tech-savvy clients who are willing to complete online fact-finds and communicate through client portals reduce the administrative burden on the firm and so cost less per client to bring onboard and manage on an ongoing basis.
Embedding digitally-enabled client service throughout the advice journey, especially for those with simpler needs at the outset, makes it easier to deliver a profitable service to more people who still building their wealth.
However, the digital-first mindset also sets certain expectations.
The under 30s are used to accessing information on demand and have grown up expecting tech to be engaging, user-friendly and quick.
They want accessibility and transparency from their providers as well as prioritising ethical considerations. A study by DeVere Group found that 73 per cent of Gen Z and millennials prefer environmental, social and governance-focused investments.
Appealing to this demographic therefore means deploying the right tools, from mobile apps and client portals to AI-driven functionality, to provide access to information, guidance and even digital advice at any time and any location.
Offering personalised options, like adjustable cash flow modelling projections, and explanatory videos that can be explored at home, creating an authentic online presence on social media sites like YouTube, Tik Tok, Reddit and Instagram, can all help reach younger audiences and build trust, relevance and engagement.
Combining digital and human
While the quality of the online experience is vital, it is important not to forget the value of human advisers in the process.
Gen Z are more able to combine the digital and physical world than any other generation, while 97.5 per cent of the group cite social media as their primary source of shopping ideas, according to Influencer Marketing Factory.
Research by outdoor advertising company Clear Channel also finds that 59 per cent prefer to actually shop in store.
Getting the right balance between digital offering and human support is crucial for a Gen Z strategy that is successful for the demographic as well as your business.
There is no stopping the digitalisation of advice services.
An abundance of new tools and applications will be coming on stream imminently.
Now is the time to look closely at serving Gen Z the way they can buy into. It makes great business sense as well as helping to narrow the advice gap.
Richard Wake is the chief customer officer – UK and Australia at Intelliflo
