More trust with hi-tech services Millennials are open to novelties – The Republic

THE WEALTH TRANSFER TO SECOND McDuck CONTRIBUTE TO GENERATION MODIFICATION OF CONDUCT THE TECHNOLOGICAL DEVELOPMENTS AND REGULATORY CHANGES HAVE iNTRODUCED GREATER TRANSPARENCY IN

[SCENARIO] the Roma in confidence has always been an essential aspect in the consultant-client relationship, not surprisingly, in the Consob report analyzing the demand for consulting in Italy, as many as 56% of respondents stated that the willingness to invest is inspired mainly from the trust in the counselor and financial institution. Today, according to consulting firm PwC, the significance of confidence, the way it is promoted and obtained, is changing radically. In the report “2016 Wealth management trends”, the PwC experts explain two revolutions that are in place, a “noisy” and the other silent. The first includes trends already widely debated, as the huge transfer of wealth in progress in the US, the aging of the baby boomers, those born between 1945 and 1964, the transition of their capital to the next generation, the development of automated counseling the robo-advisor, the strengthening of regulatory controls to ensure that the consultants interests do not conflict with those of their clients. PWC estimates that in the US, the new generation, the generation X and that defined the Millennials, will control by 2020 more than half of all investable assets, about $ 30 billion, and a recent survey showed rates of “friction” by over 50 percent in the intergenerational wealth transfers. In our country the use of automated forms of counseling and

Portfolio management is still very limited, while the phenomenon of transfer of wealth is less extensive, but still significant: between the “Scrooge” Italians, the data they are those of the Italian private banking Association – Aipb, 20% of all customers are over 65 and the generational shift is particularly important when you consider that almost a third of private customers is represented by entrepreneurs. At the center of the second revolution, there is, according to PwC, their confidence, or lack thereof. “Technological developments and regulatory changes introduced greater transparency in the wealth management process,” the report said. It is no longer acceptable, explain the authors, build trust exclusively on the concept “the manager is the expert.” Today, customers want more personal interactions, in real time, easier, and are also less tolerant, for example, of complicated procedures or that require too much time; I do not like them do not have control of investment decisions and also begin to evaluate the fees they pay in the light of the performance they are getting. To build a relationship of trust in PwC believe that private bankers and consultants should focus on a few critical areas. Standardization and customization of advice is one of them. Today, technology and access to data provides a “segmentation by individual”, you can use the most accurate and reliable models, while maintaining sufficient granularity to meet the risk tolerance and risk capacity [the amount of risk compatible with the investment objective] of a specific customer. Another area concerns the delivery channels for counseling, the multi-channel is set to increase, and will also have to change the service model: it will be necessary to have a wider range of products, but also offer real-time portfolio analysis, information , alerts on portfolio performance or individual investments, as well as improved reporting and customer interaction. Is changing, finally, the very nature of the advice. Expands its field of action, no longer limited to investments, the consultant does not simply collects information about the customer, the advisory model becomes more “collaborative” and gradually that the wealth management evolves, moving from a focus on the transaction, the search for ‘ “alpha”, a goal-oriented approach, the new emerging concept is the’ ‘health of your wealth, “which translates as” the wealth of your state of health “, as customers build and seek their resources and how they reach their goals, personal and professional. (M.man.) PwC estimates that in the US the generation X and that of Millennials, will control by 2020 more than half of all active investable