Rethinking tech assumptions about baby boomer clients
In the intricate world of wealth management, assumptions about client demographics often wield considerable influence over business strategies. One prevailing belief that may be hindering progress for wealth management firms is that baby boomer clients, born between 1946 and 1964, lack technological savvy. While it’s true that this generation did not grow up in the digital age, labeling them as technologically inept can pose significant risks for wealth management firms.
The roots of the assumption that baby boomers are technologically challenged are deeply embedded in historical contexts. Assumptions of technological ineptitude find their roots in the introduction of personal computing during the 1980s.
At that time, as personal computers entered workplaces, baby boomers were well established in their careers. The shift from manual typewriters to computers posed a significant learning curve. The unfamiliarity with operating systems, software applications and the intricacies of these early computers presented a considerable challenge. The learning curve associated with this technological shift contributed to the emergence of a stereotype that has persisted through the years.
A measured approach to social media
Some wealth management firms contend that baby boomers are not technologically savvy based on the notion that this generation may be lagging in adopting the latest technology trends. While it is true that boomers may not be as quick to embrace every new gadget or social media platform as their younger counterparts, this should not imply a lack of overall technological proficiency.
For example, consider the social media landscape. While younger generations swiftly adopted new platforms as they emerged, baby boomers exhibited a more measured approach. Instead of jumping on every trend, many Boomers strategically embraced social media platforms that resonated with their preferences and access to information. This nuanced approach demonstrates a selective adoption rather than a lack of technological proficiency.
Technology diversity within a generation
The assumption of technology ineptitude among baby boomers often stems from a generalization that doesn’t capture the diversity within this demographic. While some boomers may be less inclined to adopt new technologies, a significant portion of this generation has shown remarkable adaptability, especially on the younger end of the cohort. Many boomers actively use smartphones, tablets and computers for various purposes, including financial management and investment decisions.
Consider a scenario where a baby boomer, initially skeptical about the advantages of online banking, gradually embraces mobile banking applications. The convenience of checking account balances, making transactions and monitoring investments on a smartphone becomes integral to their financial routine. This exemplifies the diversity within the boomer demographic, challenging the assumption that they universally resist technological advancements.
The modern tech renaissance
The rapid adoption of digital tools in recent years applies to many baby boomers. Many are increasingly engaging with mobile banking apps, investment platforms and online financial tools. This shift challenges the stereotype that this generation is averse to technology and underscores the importance for wealth management firms to reassess their assumptions and align their services with the evolving preferences of their boomer clients.
Consider the emergence of robo-advisors, an innovative digital tool that automates investment processes. Initially perceived as a tool favored by younger, tech-savvy investors, robo-advisors have gained traction among baby boomers seeking a streamlined and cost-effective approach to managing their investments. This exemplifies how baby boomers actively adopt and adapt to new technologies, dispelling the notion of a uniform lack of tech fluency.
Underestimating boomers’ tech acumen comes with significant risk for wealth management firms:
Missed opportunities for engagement
Wealth management firms that cling to the assumption of technological ineptitude among baby boomers risk missing out on valuable opportunities for client engagement. As boomers increasingly embrace digital tools, firms that fail to recognize this shift may find it challenging to connect with this demographic in a meaningful way. For instance, firms overlooking the growing interest of boomers in online financial education platforms may miss a chance to engage with this demographic seeking to enhance their financial literacy.
Erosion of trust and relationship-building
Underestimating the technological proficiency of baby boomers can erode trust and hinder relationship-building efforts. Firms that perpetuate stereotypes may inadvertently communicate a lack of understanding of their clients’ needs and preferences, potentially straining the advisor-client relationship. For instance, assuming that boomers are not interested in digital communication channels might lead to missed opportunities for personalized and efficient client interactions, eroding the trust built over years of service.
Competitiveness in the digital era
In an era where technology plays a pivotal role in financial services, wealth management firms must stay competitive by adapting to the digital landscape. Dismissing the technological capabilities of baby boomers may lead to a failure in meeting the expectations of a demographic that increasingly values convenience and efficiency in financial transactions. Firms that do not offer user-friendly digital interfaces or fail to integrate technological innovations risk falling behind competitors who cater to the evolving preferences of this influential generation.
How Wipfli can help
Wealth management firms that challenge assumptions about the tech acumen of baby boomer clients are poised to adapt their services, foster stronger client relationships and stay competitive in an industry where digital proficiency is increasingly nonnegotiable.
Wipfli professionals are ready to help you meet the needs of this influential demographic and the ones to follow with our generational research services. We apply our strategic research to your digital road map, giving you the insights you need to create a digital experience that meets customer expectations and keeps you competitive.
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