As Generation X hits its prime earning years, and millennials enter into the workforce, they’re taking center stage as the new generation of investors. Technology has not only altered the way individuals shop for products and services but also the way they interact with the companies who are selling these products and services.
This breed of investors is tech-savvy and self-directed, seeks work-life balance, values freedom and responsibility in the workplace, and dislikes micromanagement. As many of them approach the middle of their working careers and potential peak earning years, they’re becoming increasingly relevant for banks and other financial services institutions. They even have a label,”mass affluent,” due to their extensive presence and financial wealth.
The banking behaviors of mass affluent customers are different from pure retail banking customers. They request more information, look for safe savings and investment products, show interest in new technologies and digital banking, and are interested in banking across regions.
Moreover, they take a more financially proactive role in societal wellness, considering that they’re twice as likely as other generations to invest in companies with a stated social or environmental impact.
Source: Sustainable Signals: The Individual Investor Perspective[1], Morgan Stanley
The next generation of investors is moving away from the old ROI concept in favor of a more tangible approach, not only focusing on financial returns but also giving value to their time and trust. They don’t expect merely a financial return, as they also have a focus on socially responsible investing and want to know that their investments are helping to generate social and environmental good.
Source: Sustainable Signals: The Individual Investor Perspective[2], Morgan
