Beyond Inheritance: Building Banking Experiences for Multi-Generational Wealth

The largest intergenerational wealth transfer in history is underway, with $84 trillion moving from baby boomers to their heirs over the next two decades. While your institution currently enjoys strong relationships with boomer clients, assuming their inheritors will maintain those accounts is a strategic miscalculation that could reshape the entire competitive landscape.

Here's the reality: the next generation evaluates financial institutions through an entirely different lens, one shaped by seamless digital experiences and on-demand service models. The question isn't whether they'll inherit the assets—it's whether they'll keep them with you.

The Inheritance Paradox

Baby boomers currently control approximately 70% of U.S. wealth and demonstrate remarkable loyalty to their financial institutions. They value personal relationships, tolerate complex processes, and rarely switch providers. Their children, however, maintain an average of seven financial relationships across traditional and fintech providers, constantly optimizing for better rates, lower fees, and superior user experience.

Consider your current customer base. How many Gen X and millennial account holders are with you primarily because their parents established those relationships? These convenience customers maintain checking accounts for direct deposit while their investment activity happens on self-directed platforms, their payments flow through peer-to-peer apps, and their savings chase yield at digital-first institutions.

When the wealth transfer occurs—and with it, the need to consolidate and manage significant assets—what's your retention strategy?