Cerulli projects that $72.6 trillion in wealth will be passed on to heirs and younger generations through 2045. Yet, only 42% of advisor practices offer intergenerational planning, according to the latest Cerulli Edge—U.S. Advisor Edition. Advisors hoping to capture and retain beneficiary assets must not only incorporate intergenerational planning into their business model, but also evaluate their existing technology infrastructure to remain attractive to young investors. Asset managers are working to develop new products and restructure current offerings to meet the demands of younger investors.

Evolving service and business models to meet the needs of the next generation is no small task. According to the research, over one-quarter of advisors (26%) identify building multigenerational relationships as one of their greatest practice challenges. “Advisors are frequently so focused on the daily operational aspects and pressing investment or advice needs, they are unable to properly develop strategy related to developing relationships with the next generation,” says Andrew Blake, senior analyst. Preparing for this shift could be an opportunity for asset managers to add value to advisors. “Asset managers can play a role in educating advisors on how to best service investors through thought leadership and value-add tools.”

The ability to manage and upgrade technology capabilities stands to play an influential role in determining whether an advisor is effective in appealing to younger investors. Across industries, clients are seeking to work with companies that make it easier for them to navigate accounts, access interactive digital content, and receive customer service through readily available artificial intelligence interactions. Firms with lagging digital client experiences may face substantial roadblocks trying to catch up to more technologically savvy competitors.

Cerulli believes that wealth managers focused on capturing next-generation wealth will leverage technology that promotes the client experience, making it easier and faster for this cohort of investors to transact. Ultimately, both asset and wealth managers need to adjust their service models to safely transition intergenerational assets. “A comprehensive, cohesive digital strategy beyond a collection of software or online content is needed from both,” says Blake. “Integrating digital offerings to help drive investor outcomes will help asset managers and advisors win assets from a younger and more technology-focused generation of investors.”