One of the biggest challenges is to find a strategy for reaching the millennial generation.
Millennials are ‘digital natives’ who expect instant information digestible in Twitter-length feeds. This is a generation that clearly needs to save for the future. Defined benefit pensions are becoming a thing of the past and that first house purchase is occurring later and later in life.
With this challenge comes a potential threat from outsiders. Chris Chancellor, Partner, Mackay Williams, stresses there are many potential competitors out there. “It is vital that asset managers demonstrate the value they are bringing, build their brand and earn the trust of a new generation. The risk is that the technology companies will be trusted more. You can imagine peer-to-peer lenders setting up their own asset managers or Amazon entering the distribution space.”