Wealth management and the priorities of the next generation

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Wealth management and the priorities of the next generation

"Next gen" refers not only to a renewed client base at a time when many customers wish to pass on their wealth. At Lombard Odier, it also means recruiting and training young bankers. This double transfer – of wealth and expertise – has always been part of our history, which spans several generations. We met Senior Banker & Team Head Nadine Mottu, who manages a team serving prominent families and entrepreneurs, some of whom represent this new generation of clients.

"I can see that bankers and clients in the same age group are able to relate more to each other because they have more in common. This lays the foundation for constructive relationships and dialogue," says Nadine Mottu, who has attracted talented young bankers such as Sybille Rappaz and Maxime Biais to her team.

"Sometimes, parents actually expressly request that a banker of the same generation is involved in managing relations with their children and works in partnership with the family's senior banker," adds Nadine Mottu. "This makes perfect sense for us because our aim is to support families over the long term. And to build long-lasting relationships over several years it helps to be more or less of the same generation!"

Demanding and knowledgeable, they're also "ambassadors"

Sybille Rappaz notes that the transfer of the banking relationship is not always initiated by the parents, as was traditionally the case. Other patterns are emerging, as the new generation becomes involved in managing family assets at an increasingly early stage. As a result, in addition to parents passing on their banking relationships to their children, we are also seeing more and more young existing Lombard Odier clients becoming proactively involved in the overall management of the family's assets.

We are also more and more young of our younger clients becoming proactively involved in the overall management of the family's assets.

Sybille Rappaz also observes that satisfied customers of this generation speak much more openly about their banking relationships than their parents. "Naturally, they value discretion and security, just like their parents. However, they are happy to tell their network that they are Lombard Odier clients. This is not something we have seen in the past. If they are satisfied, they can become real ambassadors for our Bank."

If our next generation clients are satisfied, they can become real ambassadors for our Bank.

For Nadine Mottu, this attitude goes hand in hand with a desire and need for transparency. According to the banker, this group is highly sophisticated and forms a demanding, well-informed client base that does not hesitate to question bankers' choices. Communication is also generally more frequent than with previous generations, due to the rise of technology.

They want technology to make their lives easier and have high expectations. "Our discussions in this area have revealed that they appreciate our banking solutions and the fact that we have developed them in-house for decades," says Sybille Rappaz.


They value entrepreneurship

The composition of the new generation differs from previous generations in that wealth can be created much more quickly today than it was 20 or 30 years ago. Although inherited wealth certainly has not disappeared, a growing number of clients have built their fortunes in their thirties through their professional activity and/or by starting their own business, which was less common before.

This type of client values the bank's entrepreneurial DNA, which is reflected in its history and family tradition, as well as in our proactive day-to-day approach. We are able to speak entrepreneur to entrepreneur.

"This type of client values the bank's entrepreneurial DNA, which is reflected in its history and family tradition, as well as in our proactive day-to-day approach. We are able to speak entrepreneur to entrepreneur and our clients place a great deal of importance on the personal involvement and accessibility of our Partners," explains Maxime Biais.

According to the banker, the new generation also appreciates opportunities to network and share experiences, such as those offered by the Bank's Next Gen events. They want the chance to form relationships, meet potential partners and find out about our analyses of current economic, financial and political events.

This type of client values the bank's entrepreneurial DNA, which is reflected in its history and family tradition, as well as in our proactive day-to-day approach. We are able to speak entrepreneur to entrepreneur.

"When it comes to interaction, this type of client particularly values our partnership-based approach, which generally means a senior banker and a junior banker work together, each contributing their expertise and complementing that of their colleague," adds Maxime Biais.

Sustainable finance and the transition to more sustainable business models are a priority for new generations.

Private equity and sustainability top the management agenda

In terms of portfolio management, Nadine Mottu has identified two themes that particularly stand out among their wants and concerns: private equity and sustainable finance. "Beyond the financial characteristics of the private equity asset class, I think they appreciate the entrepreneurial aspect associated with it, which is similar to their own. The universe is also much larger today and includes many technology companies that offer products and services that they use. They consequently feel closer to these companies and want to participate in their development."

As for sustainability, the entire team agrees that it is now an unavoidable topic of discussion. Sustainable investing is a much talked about matter by new generations and they generally have a fairly clear idea of their objectives.

By integrating sustainable research with traditional financial research…clients are able to benefit from tailor-made, high-performance sustainable portfolios.

The banking team believes that these clients recognise and value Lombard Odier's long-standing expertise in this area, from its first impact funds to green and climate bonds. By integrating sustainable research with traditional financial research – all carried out in-house – clients are able to benefit from tailor-made, high-performance sustainable portfolios.

Important information

This document is issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter “Lombard Odier”). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This document was not prepared by the Financial Research Department of Lombard Odier.

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