The Disconnect Between Next-Gen and Family is Caused by Technology and Succession

Despite growing awareness that a new generation of high-net-worth individuals is entering the market, many feel that technology and succession will define the future of wealth. The generation gap between the family and the next generation may be exacerbated by the advent of artificial intelligence and the increasing complexity of the business. Communication and education are the keys to overcoming this.

As more UHNWI (ultra-high net worth people) and HNW (high net worth individuals) families face the reality of succession planning, some are turning to the next generation as a savior. Among other things, the next generation faces unique challenges and needs. While this isn't inherently a terrible thing, it does portend a nasty awakening for the old guard. Fortunately, there are a few steps that may be taken to reduce these issues. First and first, you must get to know your millennials.

Attending a few conferences and events is another option. You will be able to network with other families in your peer group as well as meet and get to know your heirs.

A new poll uncovers the ins and outs of the world of family-owned enterprises. The PwC Global NextGen survey, one of the largest of its type, polled 1,036 next-generation family business leaders from 68 nations, regions, and geographies. While the results were varied, several similar patterns emerged.

Communication was at the top of the list of subjects considered in the PwC survey. The most surprising finding was that two-thirds of the next generation would like to participate in a formal dialogue. It is also customary for next-generations to wait for the family to have a candid conversation. However, the same study found that half of those same family members would desire to deviate from the norm.

The Next Generation and their families have made developing sustainable business practices a key concern. Indeed, according to PwC's Global NextGen Survey (2022), more than two-thirds of respondents agree that family businesses have a responsibility to address climate change.

Sustainability encompasses a wide range of challenges, including environmental, economic, and social concerns. Sustainable businesses prioritize natural resource conservation, waste reduction, and emission reduction. They may also implement policies that benefit their community.

While many businesses have embraced sustainability, some have been accused of greenwashing. To avoid this, businesses must plan for both short and long-term objectives while still managing day-to-day operations.

Next, Gens must first grasp the issue in order to design a good sustainability strategy. Fortunately, most NextGens are aware of the problem and understand what needs to be done to address it.

The ability of a wealth management firm to produce the next generation of wealth management is dependent on its awareness of industry trends. These modifications will have an influence on the operational model and sources of competitive difference. It also has consequences for wealth managers' and advisers' talent strategies.

The clientele of the future will be far more diverse. Customers will increasingly want integrated financial assistance, including the services of an adviser who speaks their native language.

The development of large firms in the tech ecosystem as fundamental infrastructure providers for the wealth-management business is likewise reshaping the landscape. They are making large profits from cloud services and analytics. As a result, these businesses are increasing their market share. Their influence will expand with time, and they may become direct competitors.

A good generational transfer may be a thrilling experience for all those involved. With the average age of baby boomers reaching an all-time high, there is a greater emphasis on family values and legacy preparation. It is, however, a lot of hard labor. And the benefits aren't always distributed evenly. Fortunately, there are many people willing to assist. Whether you're trying to buy a house or find a career, having a network of friends and family members will assist you in navigating the next stage of your life.

The big question is, how do you do it? The traditional method is to delegate the legwork to professionals. Fortunately, there are numerous organizations committed to assisting you in finding your next career, a place to live, or a new relationship.

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