Wealth transfer: how the next generation is reshaping private banking

Xavier Bonna - Managing Partner Lombard Odier Group
Xavier Bonna
Managing Partner Lombard Odier Group
Wealth transfer: how the next generation is reshaping private banking

key takeaways.

  • The next generation expects more from private banking: deeper dialogue, greater transparency and support in navigating an increasingly complex world.
  • As wealth, business and family considerations become more interconnected, successful decision-making depends on turning complexity into clarity.
  • Trusted relationships remain at the heart of wealth management, helping families face reality, prepare for transition and invest with conviction across generations.
  • Wealth transfer is ultimately about empowering the next generation with the knowledge, perspective and confidence to shape the future.

Inheriting wealth, selling a business, or taking on family responsibilities: for the next generation, the question is no longer simply where to invest, but how to make the right decisions in a world that is becoming increasingly complex and uncertain.

The paths were once clear. Now, though, seismic technological, economic, social and geopolitical changes are creating new challenges and opportunities. The old world has gone, and the new one is still taking shape. At times, it can feel as though chaos has become normal.

Against this backdrop, the largest wealth transfer in history is gathering pace, with nearly USD 83.5 trillion expected to change hands by 2048.1 Transferring wealth between generations remains a delicate exercise, and yet a Lombard Odier study found that fewer than one quarter of wealthy families have put a structured long-term plan in place2.

At the same time, expectations are evolving. As wealth structures become more sophisticated and family arrangements more varied, making sense of complexity has become as important as investing itself. Younger generations continue to value expertise, but they also expect more exchanges with their advisors, transparency, and support when making decisions. As a result, both the private banking relationship and conversations within families are changing.

Read also: Lombard Odier, a leading private bank for high-net-worth individuals and families

Next-generation clients and private banking: the need for a tailored approach

The term “next generation” encompasses a wide range of backgrounds and wealth structures. An entrepreneur who has sold a start-up naturally has different priorities from an internationally mobile executive who is compensated in company shares, or someone preparing to assume responsibility for a family fortune.

With the next generation typically spanning people in their twenties to forties, what these individuals share is less a matter of age, and more the complexity of the decisions they face. As wealth grows, disparate considerations become increasingly interconnected – for instance, a single investment decision may have tax, entrepreneurial, family, or succession implications.

Private banking increasingly provides a framework for navigating these interconnected questions. The objective is no longer simply to manage a portfolio, but to help clients make informed long-term decisions aligned with their ambitions and family goals. In an environment where circumstances can change rapidly, clients are looking for trusted partners who can help them interpret complexity, embrace reality instead of seeking refuge in old ways of thinking, and build the conviction to act with confidence.

Read also: How to choose the best private bank for your needs

A more collaborative and transparent relationship

For tomorrow’s heirs, it is no longer sufficient for financial advice to come in the form of a one-way recommendation. Millennials and Gen Z investors increasingly favour relationships built on trust, dialogue, personalisation, and transparency.3

“Wealth transfer is about more than passing on assets. It is also about preparing the next generation to make informed decisions and take on new responsibilities. By fostering dialogue and understanding within families, we can help create lasting continuity.”
Xavier Bonna, Managing Partner, Lombard Odier

In a world where nothing is certain, they want to understand what they own, why they own it, and how their investments fit into their broader wealth strategy. This demand for clarity extends to performance, risk, costs, and analysis of portfolio adjustments made over time.

Research consistently shows that younger generations are not looking to replace their advisor with a mobile app or artificial intelligence. On the contrary, they value having access to a trusted advisor who knows them personally and who can answer questions quickly and help them navigate complex decisions.

This desire for dialogue extends well beyond the banking relationship. Lombard Odier’s research found that 45% of parents, 53% of children, and 38% of siblings do not discuss their wealth-related objectives within their families. When expectations and plans remain unspoken, decision-making becomes more difficult and wealth transfer becomes harder to prepare for.4

Lombard Odier’s research found that 45% of parents, 53% of children, and 38% of siblings do not discuss their wealth-related objectives within their families

In this environment, an advisor who can provide perspective, explain the implications of different options, and facilitate family discussions creates value that goes far beyond the transactional aspects of the role.

A hybrid model, with people at the heart

A number of recent digital advances have quickly become basic requirements. Younger clients expect to access portfolio valuations in real time, retrieve documents easily, and explore different investment scenarios at the touch of a button. Yet the real change lies less in the tools themselves than in the evolving role of the private banker. Technology enhances expertise, but does not replace it.

Read also: The future of wealth management is human... and technological – interview with Serge Fehr

The traditional model, in which the banker proposes solutions for the client to approve, is gradually giving way to a more interactive and collaborative relationship. Private bankers are increasingly becoming strategic partners, helping clients assess options, understand the consequences of their choices, and make connections between related issues, whether regarding investment, entrepreneurship, international mobility, or succession planning.

According to Lombard Odier’s research, 65% of wealthy clients believe it is beneficial for their bank to involve the next generation in the wealth transition process

It is during periods of complex decision-making that this role becomes particularly valuable. During episodes of market volatility, entrepreneurial transactions, unconventional investment opportunities, or succession questions, we are unafraid to state plainly where others might avoid. Families clearly value this support. According to Lombard Odier’s research, 65% of wealthy clients believe the next generation should be involved in the wealth transfer process, while more than half view financial education as a key ingredient of a successful transition.5

Investing with conviction and understanding

The same principle applies to private market investments, an asset class of particular interest to the younger generation of wealthy Swiss investors (according to a separate Lombard Odier study)6. This trend is also evident globally, with more than 60% of wealthy millennials and Gen Z investors willing to allocate actively to high-growth niche markets7.

This interest is accompanied by a strong appetite for advisors to explain each opportunity in detail. Investors want to understand valuation mechanisms, liquidity constraints, and the role these investments play within their overall asset allocation, while ensuring sufficient diversification to preserve wealth.

To address these needs, Lombard Odier’s Your Wealth Outlook approach places equal emphasis on life goals, personal convictions, and the specific constraints of each client’s wealth position. The aim is to build portfolios tailored to individual circumstances. Supported by ongoing monitoring and integrated technology, the approach provides clients with a clear view of their investments and the role each one plays in achieving their objectives.

Read also: Why rethinking wealth management through a long-term lens supports generational continuity

Private banking as a decision-making partner

For affluent members of the next generation, choosing a private bank increasingly means assessing the quality of its decision-making framework.

In a rapidly changing world, conviction comes not from relying on past assumptions, but from understanding the realities shaping the future. Increasingly, that understanding is developed through bold dialogue between the next generation client and their private banker: a dialogue that embraces reality rather than seeking refuge in familiar ways of thinking.

Digital tools matter. Investment solutions matter too. Yet what often sets institutions apart is the quality of the dialogue, the ability to anticipate future questions, and the capacity to turn complexity into clarity. In turn, many of the preferences associated with younger generations are now also being adopted by more experienced clients.

The distinction between private banks often comes down to the depth of these conversations, the ability to anticipate key questions, and the skill to turn complex situations into understandable decisions

Against the backdrop of the largest wealth transfer in modern history, investment management alone is no longer enough. Families seek partners who can help them navigate change, foster dialogue across generations, and provide the perspective needed to make confident decisions.

The world is evolving, and with it the questions families face. The challenge is not to look back to the way things were, but to engage with the world as it is – embracing reality, because this is where conviction is built. At Lombard Odier, we do not follow the crowd. We move when many don’t; we stay invested when many sell; and we question when many assume – we understand that close relationships with our clients are essential for helping to guide them through turbulent times.

For the next generation, wealth management is becoming less about the management of assets alone and more about building the knowledge, judgement, and resolve needed to shape what comes next.

LO Generations: supporting the transition between generations

The transfer of wealth is about more than financial assets. It also involves the gradual handover of responsibilities, knowledge, and decision-making authority. This is the thinking behind LO Generations, a Lombard Odier initiative designed to support families through the different stages of that transition.

The programme is built around four complementary dimensions: understanding family and wealth dynamics, preparing the next generation for future responsibilities, supporting families through governance questions, and encouraging peer-to-peer exchanges through a dedicated international community.

LO Generations is built around four complementary dimensions: understanding family and wealth dynamics, preparing the next generation for future responsibilities, supporting families through governance questions, and encouraging peer-to-peer exchanges through a dedicated international community

LO Generations responds to a reality observed across many families. While almost 80% of wealthy clients wish to pass on their wealth and believe it is important to share common objectives,8 relatively few families have a structured framework in place to prepare for that transition over the long term.

To provide a clear and structured framework for reflection and decision-making, Lombard Odier places particular emphasis on understanding each family’s unique circumstances and identifying the tools best suited to their needs and objectives.

Through educational programmes such as the LO Generations Masterclass, dedicated events, and tailored support, the objective is to help families prepare not only for the transfer of wealth, but also for the responsibilities that accompany it. By building knowledge, confidence, and perspective, the programme helps the next generation face the realities of wealth ownership and prepare for the decisions ahead.

“The LO Generations Masterclass helps families involve the next generation in preserving their wealth. By providing the knowledge and confidence needed to sustain and strengthen their legacy, it also offers participants the opportunity to discover the DNA of our House and build a shared future with us.”
Xavier Bonna

FAQs

Millennials expect more than access to investment solutions. They value transparency, clear explanations, and a more collaborative relationship with their private banker. Increasingly, in a fast-changing world, support with decision-making is as important as wealth management itself.

Wealth transfer is not only about passing on financial assets. It also involves preparing the next generation to assume future responsibilities. According to Lombard Odier research, relatively few families have a structured long-term plan in place to manage this transition successfully.

No. Digital tools make it easier to access information and monitor investments, but they do not replace human guidance. Younger generations expect both a seamless digital experience and a trusted advisor who can help them make informed decisions at key moments.

Millennials and Gen Z investors want to understand what they own, why they own it, and how each investment fits into their broader wealth strategy. This expectation extends to performance, risk, costs, and portfolio allocation adjustments over time. 

Sustainability is one of several themes that resonate strongly with younger investors. Beyond intentions, however, they are looking for tangible evidence and clear explanations about the real-world impacts of investment strategies. Transparency remains central to decision-making.

Private banking can help families prepare for wealth transfer by facilitating dialogue, supporting planning, and promoting financial education across generations. Its role is to help structure decisions and place wealth-related questions within a long-term perspective.

view sources.
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1 World Wealth Report 2025 | Digital Strategies for Next-gen HNWIs
2 Lombard Odier UHNWI client survey, 2026
3 Next-Gen Investors: A Guide for Wealth Managers and Financial Advisers, CFA Institute, 2026
4 Lombard Odier UHNWI client survey, 2026
5 Ibid
6 Lombard Odier Swiss survey, 2023
7 World Wealth Report 2025 | Digital Strategies for Next-gen HNWIs
8 Lombard Odier UHNWI client survey, 2026

important information

This is a marketing communication issued by Bank Lombard Odier & Co Ltd (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 marketing communication.

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