A seismic shift is coming: Intergenerational Wealth Transfer

A seismic shift is coming: Intergenerational Wealth Transfer

16 December 2019

There is a seismic shift coming, as the baby boomer generation fast approaches a lucrative retirement when compared with posterity’s current outlook. Soon, this ‘privileged generation’ (The Telegraph, 2011) will begin to flex their savings, investments and pension muscles before many eventually pass this wealth down to their children (or their children’s children).

The purpose of this paper and the focus group and round table that have contributed to it, is to examine generational attitudes and influences that impact this process of intergenerational wealth transfer and the potential scope for technology and services to support it.  

What have we been doing on intergenerational wealth transfer in Bravura’s Innovation Lab?

Bravura have developed a digital experience app that allows for a structured transfer of wealth between individuals in a controlled and secure manner.

Bravura believe that technology has a significant role to play in efficient wealth transfer. The nature of the challenge is complicated however, as it requires cohesion and communication between two (or three) generations on a subject matter that is often deeply personal and individual. This presents some unique obstacles for technology platforms, service providers such as investment platforms and financial advisers and other intermediaries to overcome, in order to deliver suitable propositions, user experiences and human interactions.

Bravura’s Innovation Lab exists to address complex challenges of this nature, with an approach that is designed to identify ideas, evaluate & refine those ideas, test, learn and adapt accordingly. Looking at the macro environment and the gifting of money and assets, the ‘bank of mum and dad’ is a hugely important part of the financial life of the United Kingdom for the millennial generation. But unlike other high street banks, the ‘bank of mum and dad’ does not have an online banking portal. Should these ‘banks’ be better equipped to consider their approach to wealth management, investment and debt?  

Simon Clare, Head of Technology and Innovation (Wealth), Bravura Solutions

The Bravura Innovation lab was set up to develop innovative services for our clients

Our vision for our own products and services is to create and deliver modern, open, agile business solutions that provide an enduring competitive advantage to clients by combining compelling functionality with modern technology.

With this vision in mind, we brought together high net worth consumers to ask them directly about their attitudes to wealth transfer and the role that technology might play in gifting money to their children. We invited a group of industry thought leaders to observe and react to the focus group with us.

In this paper we share some of the highlights from the discussion.

I would like to thank our participants for taking part in the focus group and roundtable. I, along with the entire Bravura team, welcome any questions, challenges, or feedback you might have on intergenerational wealth transfer, the ‘bank of mum and dad’, the opportunities for investment platforms or on other areas of technological innovation.

About the authors

Simon Clare

Simon Clare

Head of Technology and Innovation (Wealth)

Simon Clare is Head of Technology and Innovation (Wealth) for Bravura Solutions, based in our London office. He is responsible for running and developing Bravura’s Innovation Lab, which has produced a number of powerful demonstrators showing how Sonata can integrate with and leverage emerging technologies such as Open Banking, Amazon Alexa and machine learning.

He has years of deep IT experience across software development, technical architecture and solution design.

Freddie Findlater

Freddie Findlater

Based in our London office, Freddie has 10 years of experience working with, platform providers, asset managers and technology firms in a consulting, sales and marketing capacity.

Freddie works within the Bravura Sales and Marketing team for EMEA.