Accounting and financial services firms engaging the next generation to future-proof their businesses
Accounting and financial services firms are clear on the importance of engaging the next generation of clients in order to future-proof their client base, according to the 2018 Macquarie Accounting and Financial Services Benchmarking Report.
The report showed that high performing firms are more likely to hire younger advisers, reach out to the adult children of existing clients and implement digital solutions such as client portals and mobile applications to drive future growth.
The second bi-annual Macquarie AFS Benchmarking Report surveyed 396 accounting and financial services firms to identify the key industry trends in a changing market.
Sherise Mercer, a Division Director in Macquarie Wealth Management, said that firms across the accounting and financial services industry understand the need to reach out to a younger client base in order to underpin long-term sustainability.
“Almost 70 per cent of accounting and financial services firms are looking to engage clients under the age of 44, however the research has shown that high performing firms are more likely to employ a range of methods to achieve this,” Ms Mercer said.
“More than 80 per cent of high performing firms are engaging the adult children of their current clients as a way to access a new and younger generation of clients, compared to 67 per cent of all firms.”
Ms Mercer said that in order to differentiate and gain a competitive advantage with the next generation, firms will be required to create a service package tailored specifically for younger clients who are in the wealth accumulation stage of their life.
However the 2018 Macquarie AFS Benchmarking Report has shown that to date, only 35 per cent of firms surveyed have implemented this type of tailored service package.
Macquarie’s AFS Benchmarking Report also showed that more than 55 per cent of high performing firms are hiring younger advisers and accountants and are encouraging them to engage their own networks in order to access a younger client base.
“Younger advisers have experiences and insights that can be of great value to firms as they look to engage the next generation of clients. They have a good understanding of what will resonate with a younger client base and recognise that these clients are not necessarily interested in the same things as their parents. They are at a different life-stage and have different financial objectives.” Ms Mercer said.
Ms Mercer added that the importance of embracing technology to underpin the client experience is particularly relevant with a younger generation of clients.
“As the next generation of clients are exposed to sophisticated offerings in other consumer-based industries, they expect a similar experience from their accounting and financial services providers, one that is seamless, personalised and rich in information.
“The report has shown that high performing firms are more likely to introduce new systems and platforms over the next 12 months that give the client accessibility and insight. These include dedicated client portals, mobile apps and data aggregation dashboards.”
