Issue link: https://resources.envestnet.com/i/1527494
The Digital Experience Matters Just as preferences and goals around short- and long-term finances vary by generation, so too does the frequency with which each generation engages with their overall financial picture. The goals and data vary by client, but there is a strong need to offer an engaging digital platform or client portal, especially for younger and more affluent investors. As we discovered, there has been a significant increase in how often investors are reviewing their financial picture in just a one-year period, representing a shift towards higher financial engagement as economic and market confidence wanes. As we dug deeper, age and income/net worth trends began to emerge. In 2023, 79% of Affluent Younger Millennials review their total net worth monthly or more often, compared to only 57% of Boomers. Clearly younger Affluent generations are leading the way when it comes to financial engagement. We are also seeing an increase in activity for the uber affluent set. It's no surprise that the more assets you have, the more likely you are to keep an eye on them regularly. It's no surprise that the more assets you have, the more likely you are to keep an eye on them regularly. Why is this important? There is a clear need for advisors to have a strong and dynamic digital presence given the level of activity and engagement with younger investors and the uber affluent. However, digital isn't everything. When asked how they would most prefer to work on or manage their personal finances on a ten-point scale, Affluent Americans slightly prefer human interactions over online only management. The uber affluent lean even more towards human interactions. Clearly both digital and human management strategies are critical to Affluent Americans' financial needs. Strategy to Consider How customized are your financial management strategies for your clients? Do your clients feel supported by both the convenience of a digital financial system along with the trust and security of a human advisor? Opportunity: Consider offering clients a personalized balance of digital and human interaction across their financial management based on their age, income, preferred level of engagement, risk tolerance, digital literacy, and overall trust in each. 70% of Higher-Earners and 76% of HNWI are more likely than Affluent Americans (65%) to review their total net worth monthly or more often. 66% of Higher-Earners wish there was a technology that would just handle their personal finances for them. How do you prefer to manage your personal finances? By Affluent Total; by Average 1 2 3 Online only Human interaction only 4 5 6 7 8 9 10 5.2 5.8 5.7 Affluent Americans Higher-Earner High-Net-Worth ©2023 Envestnet, Inc. and The Center for Generational Kinetics. All rights reserved. 24