The trend: Consumers are preparing to pass between $73 trillion and $84 trillion in assets to younger generations via the Great Wealth Transfer. Inherited wealth like this makes it hard for banks to target mass affluent customers, but banks can stay ahead of the trend by ensuring they prioritize products and solutions the new recipients will need, including business solutions.
New business owners need banks: An estimated 12 million baby boomers own small businesses in the US, according to the US Census Bureau. And as they start to retire, many will likely pass down their businesses within their families. To retain their business, FIs must prioritize improving their business banking solutions, per The Financial Brand.
In addition, FIs must stay ahead of the trend of small businesses that are considering switching to digital competitors to take advantage of more advanced app capabilities targeting their specific needs.