Millennials already control USD 17trn of wealth. How will they use it to shape the future?

Millennials are the future guardians of capital. Born between 1982 and 1998, this age group accounts for one in every four people you meet. Millennials command about USD 17trn of private wealth. 

Through inheritance, business wealth creation, and income growth, that sum is set to swell to USD 24trn by 2020, according to a 2015 report from Deloitte – about 1.5 times the size of the US economy. And as the next global guardians of capital, millennials look poised to do things differently compared to prior generations.

My team and I observed that millennial tastes differ compared to other generations. Millennials prioritize convenient, on-demand goods and services. They use digital and social media more to enhance their engagement with institutions. And millennials are more willing to trade their personal data compared to other age groups, in exchange for a more convenient or personal service.

Millennials prioritize convenient, on-demand goods and services. They use digital and social media more to enhance their engagement with institutions.

We need to be wary though. Drawing broad-brush conclusions about millennials from observations can easily lead to misleading assumptions and unhelpful stereotypes. Can we assume that millennials are unhealthily obsessed with tech? In 2015, nine in 10 millennials did check their mobile devices within 15 minutes of waking. Yet by 2016, six in 10 people of all ages checked their device within a quarter hour of waking, according to Deloitte. Millennials are digital natives that lead technological take-up – yet falling adoption rates suggest technology is transforming all our lives.

A consequence of rapidly diffusing technologies is that you cannot assume millennials are the “Me Generation” either. Digital devices have brought global economic and social problems to everyone’s attention. And millennials are taking particular note of how their actions influence other people – under-35s are nearly twice as likely as other age groups to check product labels for sustainability information before buying, according to a 2015 study from Morgan Stanley. And 36% of surveyed millennials define themselves as “global” citizens according to the World Economic Forum’s Global Shapers Annual Survey. The world’s problems are shared ones. And millennials are leading the way in their willingness to put their time, talents, and capital to work in finding solutions.

The world’s problems are shared ones. And millennials are leading the way in their willingness to put their time, talents, and capital to work in finding solutions.

What changes will millennials bring about to businesses and wealth managers?

Millennials are most influenced by technological advancements and a desire to tackle the world’s social problems…for now. The extreme connection of the Fourth Industrial Revolution suggests all age groups will increasing want what millennials do. 

Governments, non-governmental organizations, and businesses need to identify the “right” operating strategy that caters to millennials today…and all age groups tomorrow.

We need fresh business models with technology at their core. Convenience and connection will raise the allure of “platform-company” models that match users with valuable, customized content. And as the next global guardians of capital lead society-wide interest in sustainable and impact investing, institutions need to collaborate. Convenience, connections, and transparency can bring together sustainable investment needs, and mobilize eager private capital for the public good.

For more information, I invite you to read our latest white paper "Millennials – the global guardians of capital." My team and I examine why millennials’ growing economic power looks set to have global implications for governments, businesses, and institutions. Explore our interactive feature around millennial characteristics around the world, and test your knowledge of the generation.

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