Cryptocurrencies have become an important part of today’s financial market, and young rich people want to be up to date with them.
They want advice on cryptocurrency investments to be offered to them by their primary wealth managers, stated Capgemini SE, a French multinational business consulting corporation.
The Paris-based company had surveyed of young millionaires and published its results on June 19, 2018.
They surveyed over 2,600 persons who have at least $1 million to invest across 19 wealth markets in North and South America, Europe and the Asia-Pacific region. Around 47 percent of surveyees were aged under 40.
According to this study, most young rich people, or to be precise, over 70 percent of millionaires below the age of 40, would like to have their primary wealth managers supply them with information on cryptocurrencies or they might decide to go to some other specialists to seek guidance.
In contrast, only 12 percent of those aged 60 or older deemed such counseling important.
Private banks “don’t necessarily need to offer products or advice on specifics, but just to get into a level of conversation and have an opinion would be a good starting point. If you can’t engage on a conversation level with the next-gen clients, then you’ll be out of the conversation and they will go to someone who can,” said David Wilson, Capgemini’s head of Asia wealth management.
According to the research, only 35 percent of surveyees said their wealth managers informed them about virtual currencies.
The problem is that the wealth managers are reluctant to discuss cryptocurrency with their younger clients because the market is so new and there is no consistent regulation. Many of them are new to this and still have to develop their expertise on the issue, Wilson believes.
Capgemini advises wealth managers to overcome their reluctance so they wouldn’t lose clients.
In addition to the reluctance of the private banks, the whole of the financial world still diverges on the issue of cryptocurrency investment.
Among those more skeptical about this whole market are some of the world’s wealthiest people, including billionaires Bill Gates and Warren Buffet, and Jamie Dimon, chairman and CEO of JPMorgan Chase & Co, the largest of the big four American banks, who had previously served on the board of directors of the Federal Reserve Bank of New York.
The private banks might also lose their younger clients to major technology firms, which the young millionaires might be inclined to trust more than their private banks’ wealth managers, the study shows.
Around 88 percent of surveyees under 40 would like to have a company such as Google to act as their wealth manager and give them advice on crypto investment, should that company decide to venture into the financial business, of course. The technology companies mentioned as potential wealth managers also include Microsoft, Amazon, and Apple.
According to Capgemini, this interest is the strongest in Latin America and Asia (but not in Japan), and Wilson believes the tech giants might begin offering crypto wealth management services any day now.