by Kerry Meadows-Bonner
In New Zealand the average age of advisers in the financial industry is 58 with an average book of 30 million investments and everyone has one eye on the exit door bringing with it what will be a new paradigm of change in the industry.
As an industry that is already under challenge there is the shift of changing tribes that is seeing more millennials and gen z’ers as the future of investors, and what it means for the industry.
With an estimated inheritance of more than 1 trillion dollars of investable assets in the next decade and millennials behind the wheel there is the balancing act of a generation that is tech savvy, determined and riding the wave of democratization investing.
Heathcote Investment Partners director, Clayton Copelstone says everyone does digital banking in some shape or form but more people, especially younger generations are looking towards things like micro-investing, digital currencies and digital wallets.
“It’s only going in one direction, and that’s up.”
He says while it's not a threat, the industry overall needs to start embracing digital concepts more or it will become competition.
With the rise of digital platforms like Sharesies and Hatch- both New Zealand owned, providing affordable fee based access to markets here, Australia and America, they are creating financial empowerment and control but Copelstone says there is more work to be done.
“Sharesies intrigues me. Personally, I hate direct consumer platforms and while none of our (Heathcote) managers support them, they are being used to actively improve people’s knowledge. Even kids are using these platforms to start understanding how their money can start working for them.”
He says the likes of these platforms can be powerful and if recalibrated, could work alongside the industry rather than against it.
“When we start to think about what they want, they don’t want us. The stuff we sell them, the guys and girls in the pinstriped suits, millennials aren’t borrowers of that and it starts to reflect on your industry and how you’re starting to reposition your business to cater to their needs.”
| « FMA aware of ASIC enforcement on Vanguard | Tough times ahead for NZ economy: Nikko economist » |
Special Offers
No comments yet
Sign In to add your comment
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved