Banks Need a Digital Strategy to Manage the $84 Trillion Generational Wealth Transfer

In this article from Global Finance Magazine, Micha Helbig (SVP and Regional Head Financial Services, Infosys) discusses the ongoing "Great Wealth Transfer," where older generations are passing on significant wealth to younger generations. This transfer will impact millions globally, offering opportunities to reshape financial systems and redistribute wealth, but it also presents significant challenges for banks, particularly those serving high-net-worth individuals.

Banks must recognize that younger generations are more digitally literate and prefer the convenience of digital banking. By 2030, up to 80% of new wealth management clients will seek financial advice in a data-driven, hyper-personalized, and potentially subscription-based model. Most millennials are open to using 'digital-first' banks or fintechs for their investments.

Building customer trust and loyalty through a digitally enabled wealth transfer process is important. It provides a safe and easy wealth transfer process for older generations to share information and be more transparent with the next generation about their inheritance. This approach also helps families to retain the knowledge and relationships built over many years, combining intuitive digital experiences with the expertise and personal touch offered by advisors.