Investment Advisors Say Tech Adoption Key for Gen Z Wealth Transfer

Investment experts emphasize that tech is key for Gen Z wealth transfer. 

This was a central theme at the recent Cordros Summit held in Lagos, where financial leaders gathered to discuss innovative strategies for effectively transferring wealth to the upcoming generation. 

As Generation Z stands poised to inherit trillions of dollars globally over the next decade, the need for digital strategies has never been more critical.

The Digital Shift in Wealth Management

Generation Z, defined as those born between the late 1990s and early 2010s, is characterized by their comfort with technology and digital assets. 

According to Elias Igbinakenzua, the Chief Executive Officer of Globus Bank, research indicates that approximately $90 trillion is expected to be transferred to the next generation, with a significant portion going to Gen Z. 

He noted that this generation is fundamentally different from previous ones, necessitating a shift in how wealth is managed and transferred.

Igbinakenzua stated, “They are not like what we used to know in the past. We must move with their thinking and create a framework that will sustain that wealth when it’s transferred.” 

He highlighted the importance of understanding digital assets, which currently represent a market cap exceeding $1 trillion. 

Failure to adapt to this digital mindset could result in a disconnect between wealth holders and the younger generation, potentially leading to a mass migration of wealth to more globally minded financial systems.

Economic Challenges and Opportunities

Tilewa Adebajo, CEO of The CFG Advisory, addressed the economic environment in Nigeria, questioning whether the country’s large population should be viewed as an asset or a liability. 

He argued that without purchasing power, a population cannot be considered an asset. 

Adebajo pointed to the historical context of Nigeria’s economic management, contrasting the prudent fiscal planning during the 2008 global financial crisis with the current state of affairs, which he believes has been marred by poor fiscal management.

He remarked, “How do you grow, preserve and even transfer wealth in an environment with bad fiscal management?” 

This question underscores the challenges that both wealth holders and the younger generation face in a country grappling with economic instability.

Embracing Digital Assets

The summit also highlighted the growing interest among Nigerian youth in digital assets. 

Gbolahon Aina, Managing Director of Cordros Assets Management, noted that a significant number of young Nigerians are already engaged in fintech and digital investments. 

He encouraged the youth to seize the opportunities presented by the digital economy, advising them to invest wisely and embrace the risks associated with new financial technologies.

Aina emphasized the importance of education in investment strategies, urging young people to learn about asset management and the digital landscape. 

“To the Nigerian youths, I will advise that they seize this opportunity, invest in assets, learn more about investment and they should not be afraid to take risks,” he said.

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Government’s Role in Wealth Transfer

Wale Agbeyanji, Group Managing Director of Cordros Capital, called for government intervention to create an enabling business environment for the youth. 

He argued that such support is essential for young investors to thrive in the global economy. 

By fostering a supportive ecosystem, the government can help harness the potential of Nigeria’s youthful population, aligning them with global financial trends.

As the discussion at the Cordros Summit highlighted, the intersection of technology and wealth transfer is crucial for engaging Generation Z. 

With their unique financial behaviors and expectations, it is imperative for wealth holders to adopt digital strategies that resonate with this new generation. 

As the wealth transfer to Generation Z approaches, investment advisors are clear: tech is key for Gen Z wealth transfer. 

By embracing digital assets and fostering an environment conducive to innovation, both individuals and governments can ensure that the next generation is well-prepared to manage and grow their inherited wealth.

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