Investment experts have emphasized the importance of digital strategies in transferring wealth to Generation Z. This insight was shared during the recent Cordros Summit in Lagos, themed ‘Wealth Revolution,’ where financial leaders gathered to discuss innovative approaches for passing on wealth to younger generations.
Generation Z is poised to inherit trillions of dollars from their parents and guardians over the next decade, with a strong preference for holding assets in digital formats. Elias Igbinakenzua, CEO of Globus Bank, highlighted that approximately $90 trillion is expected to be transferred to the next generation, primarily to Gen Z. He noted, “Gen Zs are thinking digital. We must adapt to their mindset and create frameworks that sustain wealth during transfers.”
The current market cap of digital assets exceeds $1 trillion, and Igbinakenzua stressed the need for older generations to understand these assets to avoid losing relevance. He warned that if financial advisors do not embrace a global perspective, they risk losing their connection with Gen Z, who are increasingly looking towards global opportunities.
Tilewa Adebajo, CEO of The CFG Advisory, raised concerns about Nigeria’s economic landscape, questioning whether the country’s large population is an asset or a liability. He argued that a population lacking purchasing power cannot be considered an asset. Adebajo pointed out that Nigeria’s fiscal management has deteriorated since the 2008 global financial crisis, making it challenging to grow, preserve, and transfer wealth effectively.
Gbolahon Aina, Managing Director of Cordros Assets Management, noted that Nigeria’s youthful population is actively investing in digital assets. He encouraged Nigerian youths to seize investment opportunities, learn about financial markets, and embrace calculated risks. Aina believes that with government support, the future looks promising for young investors.
Wale Agbeyanji, Group Managing Director of Cordros Capital, called on the government to create a conducive business environment that would empower Nigerian youths to engage with global economic trends. He emphasized that fostering innovation and entrepreneurship is crucial for the nation’s economic growth.
The summit highlighted the need for financial institutions to adapt to the changing preferences of younger investors. As digital natives, Gen Z and millennials expect seamless access to financial services through technology. Financial advisors must embrace digital solutions to meet these expectations and ensure effective wealth management.
The Great Wealth Transfer presents both opportunities and challenges for financial advisors. Younger generations prioritize transparency, personalized advice, and digital engagement. Advisors who can provide clear, straightforward communication and leverage technology will be better positioned to connect with these emerging investors.
The shift towards digital strategies in wealth transfer is essential for engaging Generation Z. As they prepare to inherit significant wealth, understanding their preferences and behaviors will be crucial for financial institutions and advisors aiming to support this new generation of investors.
