Millennials and investments: here are the products they prefer
The private banking service in recent years it has grown considerably and on average manages 70% of customer portfolios with over 500,000 euro of deposits in financial instruments But according to a study on the expectations and needs of the new generation of investors and managers conducted by the Italian Private Banking Association in collaboration with Accenturethe use of new models is expected to meet the demands of tomorrow’s customers and professionals, made up of individuals with high development potential aged between 26 and 57 years old interested in innovative and efficient services based on the assessment of customer needs and ability to professionally assist him in the management of assets as well as in the development of investment strategies consistent with the predetermined objectives, in compliance with the constraints of risk, costs and benefits. We are talking about an amount of financial assets of around 700 billion euros.
To attract new professionals, private banking must allow everyone to express their potential and value to the fullest, giving the same opportunity to participate and contribute, regardless of personal characteristics, even with a constant dialogue that connects or contrasts different generations. In these ways, the industry will be able to program digital, modern and effective consultancy services suited to the needs of the new generations. Activities that could easily be associated with traditional models and offer advantages to the nation in terms of sustainable development, better social inclusion and welfare development. It is also estimated that the banking sector would benefit significantly from the new private strategies that could lead to almost 15 million customers and 9 billion euros of possible new revenues. Over 50% of the new generation of investors holds financial positions of less than €50,000. However, there is a considerable number of customers who have financial assets between 500m and 1m euro; and while some invest in simple financial products such as certificates and bonds, others favor different forms of investment such as cryptocurrencies and real estate. Furthermore, younger investors look with interest at ESG factors, with 60% that prefers investments that aim to generate social added value.
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