April 15, 2013

Pershing Urges Wealth Businesses to Adapt for Generations X and Y


LONDON 15 April 2013 — Pershing Limited, a BNY Mellon company, used its recent client adviser council to urge advisers to recognise the importance of attracting generations X and Y as customers to ensure the future success of their businesses.

The event was held at Lower Slaughter Manor in the Cotswolds, as part of Pershing’s practice management programme, designed to help clients grow their businesses. During the council, Pershing outlined the differing needs and expectations of generations X and Y and offered the audience a range of strategies to help them engage and cultivate relationships with this audience, such as enhancing their web presence, hiring younger advisers and moving communications from paper based to electronic format.

Pershing advised that while baby boomers are currently the focus for advisers, the needs of the next opportunity wave – generations X and Y investors – are often neglected. Generations X and Y tend to be less satisfied with their current advisers and, if they inherit wealth from parents, they almost never keep those assets with the parents’ adviser. The assets and influence of these investors are increasing year by year, making them an essential market for wealth businesses that want to position their firms for long-term success.

Pershing used three demographic groups to explain behaviour and attitudes: Baby Boomers, aged 47 and above, which is the group of investors many wealth firms currently focus their efforts on; Generation X, aged between 32 and 46, who are poised to inherit large amounts of wealth over the coming years; and Generation Y, aged 32 and below, the group that has been most impacted by technology and is also most wary of the ‘middleman.’

Commenting on generations X and Y, Paul Bayliss, director and head of wealth and adviser solutions at Pershing, says: "Wealth businesses that are thinking about growth over a longer time horizon than the lifespan of their current client base need to carefully consider how they will attract and serve generations X and Y investors.

"The key to cultivating relationships is to invest in talent, technology and personalised approaches that can overcome the lack of trust prevalent among these groups and position the client adviser as a useful resource and straight-talking counsellor. Such approaches will strengthen a firm’s ability to attract a range of underserved investor groups and diversify their client base.”

The Client Adviser Council is the second of its kind to be held by Pershing in the UK. These events are part of its practice management programme to help business owners and executives to address the major issues affecting the growth of their business.

The two day event also provided advice and updates in a variety of discussion panels and sessions on topics including:

  • Creating growth through an effective referral programme
  • Client money regulations
  • An economic update from Simon Derrick, chief currency strategist, BNY Mellon

Pershing Limited provides broker-dealers, asset managers, intermediary firms, IFAs, and financial institutions across Europe with a comprehensive range of products, services, and solutions including retail clearing, fully disclosed institutional global clearing, broker services, and trading services. Established in London in 1987, Pershing Limited and its subsidiary, Pershing Securities Limited, are members of the London Stock Exchange and Euroclear UK & Ireland. Pershing Limited has memberships with LCH.Clearnet EquityClear and SIX SIS AG. Pershing Securities Limited is a member of Deutsche Börse, Eurex Clearing, and Clearstream. Pershing Limited is an affiliate of Pershing LLC, a leading global provider of financial business solutions to more than 1,500 institutional and retail financial organisations and independent investment advisers who collectively represent over five million active investors. Pershing LLC (member FINRA/NYSE/SIPC) is a member of every major U.S. securities exchange, and a subsidiary of The Bank of New York Mellon Corporation. Additional information is available at www.pershing.co.uk.

BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 36 countries and more than 100 markets. As of December 31, 2012, BNY Mellon had $26.2 trillion in assets under custody and/or administration, and $1.4 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com, or follow us on Twitter @BNYMellon.