7 Ways to Build Your Book: Attracting and Serving Millennial and Gen Z Clients

Use this uncertain economic time to distinguish your services and shine brightly with young clients and prospects.

Uncertain economic periods provide financial advisors, portfolio managers, insurance agents, and planners with a powerful opportunity to distinguish themselves with both current and prospective clients. Following up on how to guide clients through difficult times, this article focuses on how you can leverage current uncertainty to grow your business by attracting and serving younger generations.

While Baby Boomers (born 1950-1961)—particularly men of that generation—have historically been the focus of many advisors, the substantial wealth transfer expected in the coming years represents a tremendous business opportunity, especially among Canadians who are currently underserved.

Many younger Canadians are comfortable with a do-it-yourself (DIY) approach to their finances. However, it is a mistake to assume they do not want professional advice. They simply require that advice to be delivered in a manner that aligns with their expectations. BMO’s 2022 annual investment survey found that Gen Z is Canada’s most engaged generation in terms of tracking financial goals.

Advisors and agents who understand the differences between the Boomers and their successors—and who adapt their practices—are best positioned to attract the women and men poised to inherit and grow their own wealth.

Beyond Boomers: Seven Keys to Business Growth

Here are seven important considerations for growing your business beyond the Baby Boomer generation:

1. Treat Each Client as a Unique Individual: Do not assume that your methods for serving Boomers will appeal to younger generations. Some clients are solely goal-oriented, while others value tracking their results against a detailed financial plan. Some may prefer a hybrid model, seeking advice from you but also tracking their progress online independently. Determine what services and technological capabilities each client wants and needs.

2. Understand Cashflow: Younger clients often face competing demands for their cash, making cashflow management a significant challenge. Providing valuable service means helping them prioritize incoming and outgoing cash—addressing common dilemmas like saving for a house, kids’ education, or retirement versus aggressively paying down debt.

3. Customize Your Method of Contact: Young adults are often less comfortable with formal, in-person meetings. Determine their preferred meeting frequency and method. Do they expect a meeting agenda? Are they comfortable communicating by email? (Reminder: Communicating outside your dealer’s approved email system, or by text/chat, is not permitted.)

4. Be Patient About Delving into Personal Information: Given modern data security concerns, young clients are often private. Do not rush them to share personal circumstances; otherwise, they may switch to automated or robo-advice. Educate them on why the information is necessary. When they are ready, use “Big Fat Questions” and patiently await their thoughtful answers.

5. Educate Them, Gradually: Meet clients where they are and slowly introduce the knowledge they need to make informed, better decisions. By helping them gain a clearer understanding of a comprehensive financial plan, you become an indispensable resource.

6. Value Them: Do not assign a junior advisor simply because their current account size is small. An ambitious client is shopping for an advisor for their future and will not remain long-term if their needs are unmet. Play the long game. Regulations impose the same requirements on advisors regardless of account size.

7. Advise Without Conflict: Emphasize that the advice you provide is not influenced by your remuneration—a major concern among younger adults. By demonstrating that you act solely in their best interests, you will earn referrals and a larger share of their wallet over the long term. Making recommendations based on your own interests constitutes a legal and regulatory breach.

A Personal Example of Best Practices

The author shares a personal experience: After the financial crisis, despite the fact that paying down the mortgage was not in the advisor’s immediate best interest (in terms of compensation), the advisor helped the author quickly eliminate debt—the client’s biggest source of worry. This action proved the advisor was a genuine partner.

Do not waste this uncertain time. Communicate consistently to determine each client’s needs, listen effectively, adjust service frequency and methods accordingly, and always act in each client’s unique best interests.