Even though more and more people are becoming aware that a new generation of wealthy people is coming into the market, many people think that technology and succession will shape the future of wealth. The family and the next generation aren't on the same page, and the use of AI and the growing complexity of the business could make this problem worse. Communication and education are the keys to getting past this.
As more and more UHNWI (ultra-high net worth individuals) and HNW (high net worth individuals) families deal with the realities of succession planning, some have started to look to the next generation as a savior. The next generation will face its own challenges and have its own needs, among other things. This isn't necessarily a bad thing, but it does mean that the old guard is in for a rude awakening. There are a few things that can be done to help with these problems, which is good news. You should start by getting to know your millennials.
You could also do this by going to a few conferences and other events. You will be able to meet your heirs and learn more about them. You will also be able to connect with other families in your peer group.
In the world of family-owned businesses, a new survey shows what's hot and what's not. The PwC Global NextGen survey was one of the largest of its kind. It polled 1,036 next-generation family business leaders in 68 countries, regions, and other areas. Even though the results were different, a few themes stood out.
Communication was the most important thing that the PwC study found out about. The most surprising thing was that two-thirds of the next Gens said they would like to have a formal conversation. It's also not unusual for the next generation to wait for the family to start an honest conversation. But the same study showed that half of these same family members would like to go against the grain.
Creating business practices that are good for the environment has become a top priority for the Next Generation and their families. In fact, more than two-thirds of people who took part in PwC's Global NextGen Survey (2022) think that family businesses have a duty to deal with climate change.
Sustainability is a broad term that covers a range of ideas, such as environmental, economic, and social problems. Sustainable businesses put conserving natural resources, reducing waste, and limiting emissions at the top of their list of priorities. They may also make decisions that help the people in their area.
Many companies have taken steps to be more environmentally friendly, but some have been accused of "greenwashing." To avoid this, companies need to plan for both short-term and long-term goals while also taking care of day-to-day business.
Before Next Gens can come up with a good plan for sustainability, they need to understand the problem. Most of the NextGens are aware of the problem and know exactly what needs to be done to fix it.
How well a wealth management firm can handle the next generation of wealth management depends on how well it understands the trends that are driving the industry. These changes will affect the way the business works and how it stands out from competitors. It also affects how wealth managers and advisers plan to hire people.
In the future, there will be a much wider range of clients. Customers will want more and more integrated financial advice, such as help from a financial adviser who speaks their language.
The rise of big tech ecosystem players as key infrastructure providers for the wealth-management industry is also changing the landscape. They are making a lot of money from the cloud services they offer and the analytics they do. In turn, these businesses are getting a bigger share of the market. Over time, their power will grow, and they may become direct competitors.
When a generational change goes well, it can be exciting for everyone involved. With the average age of baby boomers at a record high, there is more focus on family values and planning for the future. But it also takes a lot of hard work. And not always the benefits trickle down. There are a lot of people who are willing to help, which is good. Whether you want to buy a house or get a job, having a network of friends and family will help you get through the next part of your life.
How do you do it? That's the big question. Let the experts do the work. This is the old-fashioned way to do things. There are a lot of groups out there that want to help you find your next job, a new home, or a new partner.
