Financial advisers' business models need changing to win over millennial clients: expert

Financial advisers are being advised to step up their game when it comes to the next generation of clients. “We need to change our business models, and change the way we're doing business, particularly when it comes to millennials,” said Patricia Soldano, chairman of the western region for GenSpring Family Offices, during a presentation Thursday morning at the IMCA Private Wealth Advisor Conference in Chicago. She cited the impact of millennials as the biggest factor impacting the advice industry, ahead of the transition of assets from one generation to the next, which is related to millennials. “The transition of assets from baby boomers to millennials will cause a rethinking of the products and services provided to the new generation,” Ms. Soldano added. “Millennials are not just going to want Mom's or Dad's guy, they might want something different. And as an industry we need to understand what their needs are.” Of the ten broad trends she covered as likely impacting the advice industry, the millennial generation stood out as having the largest influence on financial advisers and advisory businesses. For some perspective on what advisers need to adjust to, Ms. Soldano pointed out that the generation in question is between ages 18 and 33, representing 27% of the adult population, largely politically independent, heavily burdened with debt, racially diverse and digitally innovative. “You need to understand where millennials are coming from so you can attempt to deal with them as clients,” she said. “Hiring some millennial advisers is one possible solution.”