A new generation. A new approach to wealth.
Millennials have soundly made their mark in the world through their interests, innovations, and entrepreneurial power. Their large population, with change makers native to new influencing channels, has already shown that being entrepreneurial is more than a business term: it's a mindset to take opportunities and risks and set progress in motion.
As one of the largest inheriting generations in history and with their life path yet at an early stage, the next generation's potential effect on our world is just beginning.
At Credit Suisse we value the importance of the next generation's skills and energy. We set to comprehend their passions and challenges. And we strive to work together with them to identify and co-create ways to enhance their growing capabilities and support their devotion to progress.
How is the new generation different?
The new generation is composed of global citizens. International exchange is now possible not only by travel but also via our digitally interconnected culture. They are increasingly concerned about climate change and actively support causes related to the environment, sustainability, clean energy, and social enterprise. This generation is set to inherit a large sum of wealth in the coming decades. They recognize their power as consumers and know that the capital they will control can be the means for positive change. A recent poll found that 80% of Millennial investors either own or show an interest in impact investments and 64% of the Next Generation surveyed for the recent Credit Suisse report "Creating a World with the Next Generation" expressed an interest in sustainable and in impact investing.
What does this mean for how wealth and businesses are managed going forward?
In business
The new generation set to inherit family businesses are likely to challenge business practices and supply chains in order to make them more sustainable. This is not only in line with their broader value set but is also a response to increasing consumer demand for products that have been produced sustainably.
Tangible results are already seen thanks to the dedicated efforts of some younger entrepreneurs as detailed in the recent report, "Creating a World with the Next Generation", which Credit Suisse developed together with the Young Investors Organization. Some examples include:
- Promoting social equality in local communities by providing scholarships and other forms of access to education for family business employees and their children
- Encouraging women professionally and actively attempting to decrease the gender gap
In wealth
The new generation will increasingly want to manage their wealth by investing in companies and funds that meet ESG (Environmental, Social and Governance) criteria. Impact investing, where investors look for both financial return and positive impact is also likely to be popular. The report, "Creating a World with the Next Generation" also highlights some examples of how wealthy families are changing the way they manage their investments:
- Ensuring that the family investments reflect its values by empowering entrepreneurial new technologies to promote energy efficiency in local and regional areas
- Aligning the family agricultural business with sustainable investment opportunities in water, forestry, and infrastructure
Find out more about what Credit Suisse is doing with the new generation.
Ruangguru: Generating impact while creating profit and returns
Source: Credit Suisse
Published: 06.10.2019