The Evolution of Wealth Management Clients: A New Era of Demographics

Wealth management is an industry that has undergone significant changes in recent years. The traditional model of an older, male patriarch making financial decisions for the family has given way to a more diverse and dynamic group of clients. In this article, we will explore the changes in client demographics that are shaping the wealth management industry and what it means for the future of the industry.

The Changing Average Age of Decision-Makers

One of the most significant changes in the wealth management industry is the shift in the average age of decision-makers. Wealth managers are now dealing with a younger generation of clients, with many in their 30s and 40s, rather than the 60 to 70-year age group that was typical in the past. This has brought a new level of vitality and innovation to the industry as these younger clients are more willing to take on greater risk in pursuit of higher returns.

The shift in the average age of decision-makers is evident in the results of the IIFL Wealth Hurun India Rich List 2022. The list indicates that the youngest person on the list today is a teenager, as opposed to a 37-year-old a decade ago. This trend towards younger wealthy individuals adds an element of risk-taking to the wealth management space, as these individuals are in their prime and willing to take on greater risk for higher returns.

Rise of Female Clients

The Rise of Female Clients

Another major trend in the wealth management industry is the increasing number of female clients coming to the forefront of the ecosystem. With equal decision-making power as their male counterparts, women are taking the reins of finance into their own hands and making decisions that reflect their individual personalities and requirements. Gone is the era when a woman’s financial well-being was dependent on her father, brother, or husband. Today, women are charting their own path, be it on their education and career fronts or in their financial lives.

There is greater awareness and understanding of the nuances of finance, and wealth management is slowly transitioning into a sector wherein women now play an active role. A recent study by Accenture, a leading global professional services company, found that women in India are becoming more financially independent, with many starting their own businesses, and increasingly taking the lead in family financial decision-making.

The Impact of Gen Z

As the average age of the decision-maker trends downward, one segment of the clientele that is playing a bigger part in making this a reality is Gen Z. Wealth managers are now noticing an influx of clients from this youngest generation, who bring their unique perspectives and preferences to the table.

Gen Z is the first fully digital native generation and they have grown up in a world where technology and social media are ubiquitous. This has led to a greater level of financial literacy and awareness among this generation, who are more likely to be tech-savvy and comfortable with online financial transactions.

A study by Deloitte, a global professional services firm, found that Gen Z is more likely to be independent and self-directed in their financial decision-making, with many starting to invest at a young age. They also have a more global perspective on investments and are more inclined to invest in socially responsible and sustainable avenues.

Future of Wealth Management

The Future of Wealth Management

The changes in client demographics that are shaping the wealth management industry have significant implications for the future of the industry. The shift towards younger decision-makers and the rise of female clients and Gen Z clients will lead to a more dynamic and diverse industry that is better able to meet the needs of a wider range of clients.

As a wealth management expert, it is important to note that the way forward for the industry is to be India-centric. Having many expert professionals on the ground offers savvy wealth managers a huge advantage and puts them in a core position as they have far better access to wealth management landscape. The presence of a large team also helps such firms innovate better, thus enabling them to better serve the Indian institutional, NRI and domestic retail clientele while unlocking novel opportunities.

While creating a product or a platform is not a tough task, wealth management firms today must focus on building and owning the trust of their clients. This can only be facilitated by providing a 360-degree view and making the client the center of the entire wealth management experience. Equally important is to understand that the boundaries of support can often be amorphous, and wealth managers must holistically participate in their clients’ journey. This means that they must have a ‘Performance Plus’ attitude.


In conclusion, the wealth management industry is evolving to reflect the changing attitudes and demographics of its clients. From age and gender to risk tolerance and individual preferences, the industry is adapting to meet the needs of a more diverse and dynamic clientele. The future of wealth management looks to be one that is more inclusive, innovative and sustainable. Wealth managers who are able to adapt to these changes and stay India-centric will be the ones who are best positioned to succeed in the future.

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