The Breakdown of the Next Generation and Family is Caused by Technology and Succession

Despite growing knowledge that a new generation of high-net-worth individuals is entering the market, many people think that technology and succession will dictate how wealthy societies develop in the future. The family and the next generation are separated, and this separation can get worse when artificial intelligence is introduced and the business becomes more complex. Both knowledge and communication are essential for overcoming this.

Some families have begun to look to the next generation as a rescuer as more and more UHNWI (ultra-high net worth people) and HNW (high net worth individuals) families struggle with the reality of succession planning. The next generation, among other things, has its own particular set of requirements and challenges. The old guard is headed for a rude awakening, even though this isn't necessarily a negative thing. Thankfully, there are some actions that can be taken to lessen these difficulties. First and first, you must get to know your millennials.

Attending a few conferences and events is another approach to this. You will be able to network with other families in your peer group in addition to getting to know your heirs.

What's hot and what's not in the world of family-owned businesses, according to a new survey. The PwC Global NextGen survey, one of the largest of its type, polled 1,036 next-generation family business leaders from 68 different nations, regions, and geographical areas. Even while the outcomes were varied, certain similar patterns surfaced.

The PwC investigation uncovered several topics, but communication came out on top. The most surprising finding was that two-thirds of the future generation wants to have a formal conversation. Additionally, it's not unusual for next-gens to wait for the family to start a direct conversation. However, the same study also showed that a whopping 50% of those same family members would prefer to defy the trend.

The Next Gen and their families now place high importance on the development of sustainable business practices. In fact, according to PwC's Global NextGen Survey (2022), more than two-thirds of participants think that family businesses have a duty to combat climate change.

The term "sustainability" relates to a number of broad ideas, including problems with the economy, society, and the environment. Conservation of natural resources, reduction of waste, and emission control are given priority by sustainable businesses. They could also make decisions that are advantageous to their neighbourhood.

Despite the fact that many businesses have adopted a proactive stance toward sustainability, some have been accused of greenwashing. To prevent this, businesses must simultaneously manage day-to-day operations and plan for both short- and long-term objectives.

Next, Gens must first comprehend the problem in order to create a successful sustainability strategy. Fortunately, the majority of NextGens are aware of the issue and are clear on what must be done to solve it.

Understanding the trends influencing the market is essential for a wealth management firm to deliver the next generation of wealth management. The operating model and sources of competitive difference will be impacted by these changes. The talent strategy of wealth managers and advisors is also affected.

The clientele will be much more varied in the future. Customers will increasingly want integrated financial guidance, including the assistance of a financial advisor who speaks their native tongue.

The wealth-management sector's essential infrastructure is being provided by large companies in the tech ecosystem, which is likewise reshaping the market. Through the sale of analytics and cloud services, they are making enormous financial gains. These firms are consequently expanding their market share. Over time, their influence will increase, and they can develop into direct rivals.

A generational transfer that is effective can be thrilling for everyone involved. With the baby boomer generation's average age at an all-time high, family values and legacy planning are given more attention. It is, however, a great deal of work. Additionally, benefits don't necessarily flow downward. Fortunately, there are lots of people who are eager to assist. A network of friends and family members will go a long way in helping you get through the next stage of your life, whether you're trying to buy a house or find a job.

The main issue is how to approach it. The traditional approach is to delegate the research to the experts. Thankfully, there are numerous groups dedicated to assisting you in finding your next position, a place to live, or a new partner.