Germany-headquartered global consultancy firm Simon-Kucher & Partners surveyed 645 individuals born between 1981 and 1996 (23-39 year olds) from six countries, which included Australia, China, Hong Kong, Singapore, the UK and the US.
Respondents had either at least one private banking relationship in the family or at least $500,000 (£402,000, €452,000) in investable assets in their personal accounts.
But the survey found 60% of them are not happy with the service they are being offered.
On average, each respondent has had more than three wealth manager relationships.
Change of strategy
The survey found there is a movement away from traditional financial service providers, as 80% said they are using or considering using fintechs to manage their money.
Respondents are planning to allocate 56% of their investable assets to fintechs.
“The future survival of private banks and wealth managers will depend on whether they’re able to master the art of winning millennials and keep them as customers,” said Desi Soetanto, consultant at Simon-Kucher.
The study shows that “millennials” will only give firms one chance to impress them, and they “need to get ahold of this next generation before it’s too late”, he added.
Soetanto said that firms need to unveil services such as 24/7 access, the option to select their preferred relationship manager, customised recommendations, fee transparency, and comprehensive and exclusive offerings to reach out to this cohort.
The discussion around attracting and retaining younger clients has been particularly active in the last few weeks.
Recently, International Adviser reported on a Canada Life survey that found 19% of IFA firms do not want younger people as clients.
Also, in September, TindleWealth unveiled a financial planning and wealth management service for young ‘High Earners Not Rich Yet’ (Henrys) in the UK.