Risk, Reward, and Relevance: Connecting with Gen Z Investors

Gen Z is forcing the investment industry to reassess its digital strategies to profitably build client relationships, present investment options, design digital experiences, and integrate education with every login. One obvious challenge is that most Gen Zers have limited income and limited investing capacity, and they are living paycheck to paycheck. These factors necessitate the strategic use of digital channels to cost-effectively deliver timely advice catering to their nascent investment knowledge and diverse attitudes about risk, gambling, and retirement. 

The door is certainly open for advisors with a mobile-first model. Although Gen Zers readily consume free advice from “finfluencers” and social media, they trust family and financial professionals more. Successful advisors will use digital channels to maintain financial road maps that connect today’s actions with tomorrow’s outcomes. They will allocate digital resources to achieve short- and long-term goals, balance risk and reward, provide digital guardrails that respect an investor’s autonomy, and establish multigenerational planning processes that facilitate wealth transfer strategies. 

Key questions discussed in this report:

• How can advisors profitably serve Gen Z investors?
• How do Gen Z investors approach risk and values-based investing?
• How will digital capabilities evolve to cater to Gen Z?
• Whom do Gen Z investors trust more: professional advisors or “finfluencers”?
• What fintech platforms can target the Gen Z investor?

Companies Mentioned: 

Bank of America, BehaviorQuant, Bloom, Brightfin, Charles Schwab, CLEO, Copilot Money, eMoney, Fidelity, Instagram, Merrill, Monarch, MoneyGuidePro, Naviplan, Nitrogen, Orion, OWL ESG, Robinhood, SnapChat, TikTok, TradePMR, Wells Fargo, Wells Fargo Advisors, WellsTrade, YNAB, YouTube