{"id":7009,"date":"2022-03-22T11:20:00","date_gmt":"2022-03-22T09:20:00","guid":{"rendered":"https:\/\/escp.eu\/thechoice\/?p=7009"},"modified":"2023-02-17T16:51:21","modified_gmt":"2023-02-17T14:51:21","slug":"how-is-the-next-generation-reshaping-private-banking","status":"publish","type":"post","link":"https:\/\/escp.eu\/thechoice\/tomorrow-choices\/how-is-the-next-generation-reshaping-private-banking\/","title":{"rendered":"How is the next generation reshaping private banking?"},"content":{"rendered":"\n<p class=\"has-drop-cap has-medium-font-size\">Are the expectations of the next generation really so different from those of their elders when it comes to their finances? In substance, not really. But in form, certainly. <mark>Almost 80% of millennials would like to use digital tools to manage their assets in the future, versus only a third of baby boomers<\/mark>, according to <a href=\"https:\/\/www.ey.com\/en_gl\/wealth-asset-management\/how-digitalization-can-drive-personalization-in-wealth-management\" target=\"_blank\" rel=\"noreferrer noopener\">research by Ernst &amp; Young<\/a>.<\/p>\n\n\n\n<div class=\"wp-block-columns cs-column h-my-40 h-my-0-sm is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<figure class=\"wp-block-image is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.lombardodier.com\/files\/live\/sites\/loportail\/files\/images\/experts\/LO\/LOcom_-Authors_EduouardDeSaintPierre.png\" alt=\"Edouard de Saint Pierre - Local Managing Director\" class=\"wp-image-2254\" width=\"256\" height=\"256\"\/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center h-ml-20 h-ml-0-xs is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p><span class=\"h-fs-18 h-fw-700 h-cl-blue\">Edouard de Saint Pierre<\/span><br>Local Managing Director<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\">\n<figure class=\"wp-block-image is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.lombardodier.com\/files\/live\/sites\/loportail\/files\/images\/experts\/LO\/LOcom_-Authors_BenoitDubault.png\" alt=\"Beno\u00eet Dubault - Head of Strategy &amp; Business Development \u2013 Europe Francophone Market\" class=\"wp-image-6973\" width=\"256\" height=\"256\"\/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center h-ml-20 h-ml-0-xs is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\">\n<p><span class=\"h-fs-18 h-fw-700 h-cl-blue\">Beno\u00eet Dubault<\/span><br>Head of Strategy &amp; Business Development \u2013 Europe Francophone Market<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<p>This analysis stems from studies led by fifteen or so groups of students from <a href=\"https:\/\/www.escp.eu\/paris\" target=\"_blank\" rel=\"noreferrer noopener\">ESCP Business School (Paris campus)<\/a> and <a href=\"https:\/\/www.iae-france.fr\/en\/ecoles\/iae-nice\/\" target=\"_blank\" rel=\"noreferrer noopener\">IAE Nice<\/a> in 2021 in the framework of a Capstone Millennials project, launched by Certified B Corporation Lombard Odier.<\/p>\n\n\n\n<p>The objective of this collaboration was not to conduct a survey or list trends, but rather to work with these students to develop concrete solutions. We aim to implement these solutions into our services and the way in which we interact with clients. <strong>This insightful experience enabled us to delve into the financial hopes and concerns of new generations.<\/strong><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Millennials feel they are too young to fail, tend to be optimistic and don&#8217;t realise that it&#8217;s essential to optimise their assets before the age of 40.<\/p><\/blockquote>\n\n\n\n<p>Millennials are accustomed to commenting, sharing, recommending and looking for information by themselves. <mark>They are demanding and sometimes suspicious when it comes to big brand communications.<\/mark><\/p>\n\n\n\n<p><strong>Private banks today must offer them real, online and offline investment experiences and above all respond to their desire to be involved and to align their investments with their values.<\/strong> <br><br><\/p>\n\n\n\n<p class=\"has-text-align-center has-white-color has-accent-background-color has-text-color has-background has-medium-font-size\"><strong><strong>FIVE KEY TRENDS AND EXPECTATIONS OF MILLENNIALS<\/strong><\/strong><\/p>\n\n\n\n<ol class=\"has-medium-font-size wp-block-list\"><li><strong>INVOLVEMENT: &nbsp;I want to decide my own investments and challenge the financial analyses<\/strong><\/li><\/ol>\n\n\n\n<p><mark>Millennials want to be key players in their wealth management and the majority of them want to be actively involved in decision-making.<\/mark> They often obtain information of their own accord and don&#8217;t hesitate to challenge their banker on their analyses and proposals. They want a degree of autonomy as well as access to their assets at all times, mainly via <a href=\"https:\/\/www.lombardodier.com\/home\/digital-solutions.html\" target=\"_blank\" rel=\"noreferrer noopener\">digital channels<\/a>.<\/p>\n\n\n\n<ol start=\"2\" class=\"has-medium-font-size wp-block-list\"><li><strong>COMMUNICATION: my bank must adjust to my pace<\/strong>&nbsp;<\/li><\/ol>\n\n\n\n<p><mark>Communication methods are crucial to millennials.<\/mark> They expect a high degree of transparency and access to information at any time. This does not mean they are looking for a digital-only relationship. They appreciate face-to-face contact for matters that require careful thought and discussion, but for everyday matters they prefer email or instant messaging. In their eyes, it\u2019s the institution that must adapt to their preferred channels and habits, and not the other way round. They expect a high degree of reactivity, but they also want to make contact through less formal channels.<\/p>\n\n\n\n<ol start=\"3\" class=\"has-medium-font-size wp-block-list\"><li><strong>KNOWLEDGE: I want to understand what I am investing in&nbsp;<\/strong><\/li><\/ol>\n\n\n\n<p><mark>A strong desire to learn emerged from all the surveys.<\/mark> Millennials don\u2019t just want to invest in opportunities; they want to understand what makes them opportunities. Their age, their lack of financial awareness \u2013 which they themselves admit to \u2013 and their habits as consumers of content, mean they expect clear, educational explanations and prefer short, digital formats.<\/p>\n\n\n\n<ol start=\"4\" class=\"has-medium-font-size wp-block-list\"><li><strong>NETWORK: I prefer a banker I can identify with<\/strong><\/li><\/ol>\n\n\n\n<p><mark>Even though they expect a high level of experience and professionalism, the next generation want to detach themselves from certain formalities and aren\u2019t impressed by the \u201cdecorum\u201d of private banks.<\/mark> Also, they want a banker they can identify with, whether it\u2019s in terms of age, mindset, or shared interests. In short, someone who could be part of their personal and professional ecosystem, with whom they expect a mutual development of their network. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-large is-layout-flow wp-block-quote-is-layout-flow\" style=\"font-size:8px;font-style:normal;font-weight:400\"><p>The next generation want specific, innovative investment solutions, designed thematically, in order to deal with the issues that concern them the most and align their investments to their values.<\/p><\/blockquote>\n\n\n\n<ol start=\"5\" class=\"has-medium-font-size wp-block-list\"><li><strong>SUSTAINABILITY: measuring the investment impact is key<\/strong><\/li><\/ol>\n\n\n\n<p><mark>Sustainability is a major aspect. It goes far beyond awareness.<\/mark> The next generation want specific, innovative investment solutions, designed thematically, in order to deal with the issues that concern them the most and align their investments to their values. Investing via a sustainable strategy is not enough for them. They want to be able to gauge the concrete effects and the impact, understand the mechanisms and their footprint and avoid greenwashing. To them, <a href=\"https:\/\/www.lombardodier.com\/home\/rethink-sustainability\/sustainable-investing.html\" target=\"_blank\" rel=\"noreferrer noopener\">sustainable investing<\/a> does not mean relinquishing returns. Millennials want financial performance, sustainability and they favour clear reporting on impact &#8211; through digital and interactive tools. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Millennials are cost sensitive. They value personalised, differentiated services if they consider them value for money.<\/p><\/blockquote>\n\n\n\n<p>In these fast-changing times with rapid digitalisation, sustainability and ever-changing models, our clients can teach us a lot. They inspire us and challenge us every day. <strong>Their needs are constantly changing, but their initial expectations remain much the same: they want to protect and grow their wealth.<\/strong> And it is up to us to strike the right balance between heritage and innovation.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-background has-yellow-background-color has-yellow-color is-style-wide\"\/>\n\n\n\n<p class=\"has-medium-font-size\"><br><strong>The Capstone Millennials in a nutshell<\/strong><\/p>\n\n\n\n<p>Launched as an initiative of Lombard Odier\u2019s French speaking teams in Europe, Capstone Millennials belongs to Lombard Odier\u2019s projects that are aimed at anticipating and gaining a better understanding of the needs of their future clients. The groups of students from the Master\u2019s in Wealth Management at ESCP and IAE Nice who have worked on this project have based their work on market data, quantitative and qualitative studies, and some thirty individual interviews with millennials with a wide range of profiles (entrepreneurs, influencers, heirs, etc.). The project is therefore resolutely part of a more qualitative approach, based on personalised exchanges, rather than a quantitative or exhaustive ones.<br><br><em><strong>This article was&nbsp;<a href=\"https:\/\/www.lombardodier.com\/contents\/corporate-news\/corporate\/2022\/january\/how-is-the-next-generation-resha.html\" target=\"_blank\" rel=\"noreferrer noopener\">originally published<\/a>&nbsp;by Bank Lombard Odier.<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lombard Odier Group experts share insightful analysis stemming from research by students from ESCP\u2019s two Masters in international wealth management led by Profs. Fahmi Ben Abdelkader and Jean-Philippe Mabru.<\/p>\n","protected":false},"author":6,"featured_media":7010,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[14],"tags":[],"class_list":["post-7009","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tomorrow-choices","category-14","description-off"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How is the next generation reshaping private banking? - The Choice by ESCP<\/title>\n<meta name=\"description\" content=\"Lombard Odier Group experts Edouard de Saint Pierre and Beno\u00eet Dubault share insightful analysis stemming from research by students from ESCP\u2019s two Masters in international wealth management led by Profs. 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