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How to Help Customers Navigate the Great Wealth Transfer

By 09.06.23
Reading time: 4 minutes

Every family has a different approach when it comes to talking about money. Sometimes it comes up in conversation at every family gathering. Others know it will lead to arguments over the Thanksgiving turkey and avoid the topic all together. 

According to a Wells Fargo report, an estimated 26% of adult children would rather deal with their parents’ estate after they die than talk about it while they are living, and 19% said they don’t mind receiving nothing at all as long as they don’t have that talk with their parents. 

But following the pandemic, wealth advisors started to see a shift in how families talk about money, and there is a shift in interest in estate planning. Americans who survived a serious case of COVID-19 are 66% more likely to engage in estate planning than others, and 41% of Americans who witnessed a loved one battling a serious case of COVID-19 have established a will. 

Here we share how a bank’s wealth division can be part of the conversation around generational wealth and how wealth managers can best help families prepare for the transfer of wealth.

The great wealth transfer is on the horizon

You may have heard the buzz around what is being called “the great wealth transfer.” The reference is to baby boomers who are set to pass to their children more than $68 trillion in what is likely the greatest generational wealth transfer in history.

There is some debate around the numbers of how much will be handed down. Baby boomers are being mindful that they must have enough money for the rest of their lives, such as for long-term care. There are also ongoing concerns about the economy, inflation, and a possible recession that are influencing the money they pass down.  

But no matter the amount passed on, there will always be a need for help navigating the complexity of the transfer of wealth as the money moves from one generation to the next. A study found that only 42% of adults that expect to receive an inheritance feel very comfortable financially handling the new wealth that will be passed down, which presents an opportunity for wealth managers to help both the givers and the receivers.

Taking a marketing approach to the great wealth transfer

Wealth managers should view the transfer of wealth as a value exchange where both the bank and the customer receive beneficial outcomes. But where do you begin when so many opportunities are available to bring value to your clients? Start with knowing your target customers.

Use Salesforce Marketing Cloud to segment your client data effectively and efficiently. You want to take a close look at criteria around age, both for individuals in older age brackets who are providing the inheritance and for those younger individuals who are receiving the inheritance. Ages 49-75 are a great place to start as those individuals are very likely to be in this very situation. You should also consider groupings by household using Marketing Cloud’s 360-degree view of the customer. You can also look for relationships on current deposit accounts such as power of attorney or payable on death. 

The next step is to drill down on the individuals’ transaction data to see details about deposits and savings to better understand their wealth and how you could potentially help them. One example might be noticing expenses around a funeral or the end of retirement payments. This allows you to better understand when that customer could use help or advice, and you can then use Marketing Cloud to send highly targeted, personalized messages to individuals with content about advice for estate planning and how your bank can help ensure a seamless transfer of wealth.

Remember to tread carefully and mindfully

So, we must point out the so-called “creepiness factor” here. There is a fine line between bringing value to your customers and not freaking them out talking about the end of life or appearing to take advantage of them during a potentially vulnerable time – especially when we’re talking about money and estate planning, which are already touchy subjects in many families.

But death, like any life change such as a divorce, having a baby, or buying a house, brings with it financial ups and downs that wealth managers can effectively help customers navigate. And customers need wealth managers’ help because even though most parents plan to leave at least something to their children, only 37% currently have a plan in place for transferring their wealth.

Most people realize that they are giving up some level of their privacy when they release their data to a bank or other company and have come to expect that the data will be used to gather information about them. Marketing Cloud has privacy and consent management tools for marketing activities that let customers opt-out of tracking and profiling in case they do not want to hear about estate planning. But if you use your judgment with your targeting and messaging and keep it sincere and genuine, you will deliver value to receptive customers.

Silverline takes your customer’s wealth transfer from good to great

The great wealth transfer is an ideal opportunity for wealth managers to interact with customers and address their unique needs. But first, they need to know which customers to target so they can develop, grow, and retain those relationships. Silverline tailors Salesforce solutions for wealth managers so your bank can benefit from the platform and continue to deliver a true value exchange with your customers. Find out how Silverline can help banks capitalize on the great wealth transfer.

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