I have read some collected “the future of private banking in 2023” reports in the last few weeks. Many trends are not new but will continue entertaining us: ESG, crypto, blockchain and, of course, cybersecurity.
The Great Wealth Transfer is on top of that around the corner; as one would rightfully expect, that will continue for many years. In most reports, I read that generation z doesn’t believe in traditional investments because they want to generate higher returns or want to deploy the money for a specific purpose. This expressed desire should put much pressure on private banks and wealth managers in the upcoming years.
I agree that my daughter (Generation Z) erroneously thinks there is no need to be a bank client since she popularly uses Twint and Apple Pay. I started utilizing the same services since corona dominated the world. Nevertheless, as far as investments are concerned, my overall asset allocation looks similar to my parents’—wealth preservation.
Even though it may not be politically correct, I wonder why all those research reports keep talking vehemently about Generation Z and the overwhelming pressure on private banking. At least my daughter has positively confirmed that she wants my wife and me (generation x) to live as long as possible. That’s how I wish it for my parents (Silent Generation), too, and should the tragic day come; I will safeguard the inheritance with the same investment style I practice today.
Will the next generations be as different as the research reports for private banking and wealth managers predict? We also played with little money initially, but when it came to self-defined fortune levels, things changed in favour of human beings and genuine wealth management services.