Generational Wealth Transfer: 70% Goes to Women. Is Your Bank Ready?

The financial landscape is on the cusp of a monumental shift as the largest wealth transfer in history unfolds. Younger generations are poised to inherit unprecedented sums in the coming years, a phenomenon discussed by Jean-Pierre Lacroix, President of strategic design firm Shikatani Lacroix Inc. This topic will be a key focus at The Financial Brand Forum 2026, where Lacroix will present his session, “Seizing the $21 Trillion Wealth Opportunity in Banking.”

Over the next few decades, trillions of dollars will transition from older generations to younger ones, presenting both significant risks and unparalleled opportunities for banks and credit unions. However, many financial institutions overlook a critical factor that could jeopardize their ability to retain these inherited deposits and investments: a failure to adequately recognize and cater to the distinct financial needs and preferences of women.

According to Jean-Pierre Lacroix, “Seventy percent of the wealth transfers that are going to happen over the next 30 years will be going to women.” This significant trend encompasses not only surviving spouses, as women often outlive men, but also younger women and children inheriting assets directly.

A prevalent blind spot exists within most financial institutions: a limited understanding of how women’s expectations from financial advisors differ significantly from men’s. This knowledge gap is set to become a major hurdle as the wave of wealth transfers intensifies, projected to peak within the next 15 to 20 years, Lacroix warns. “This is the time to start planning,” he urges.

Key Dynamics of the Wealth Transfer:

• The Opportunity: Research by Shikatani Lacroix indicates that a substantial portion of existing investments among many investors is inherited, with further inheritances widely anticipated.
• The Risk: Alarmingly, the same research reveals that 30% of inheritors opt to switch financial providers when a wealth transfer occurs.
• The Reality: Financial institutions that fail to cultivate strong, multigenerational relationships now risk substantial business losses in the future.

Why Banks Might Miss the Boat on Generational Wealth

While financial executives frequently discuss personalization, Lacroix observes a critical misdirection: “They’re personalizing for products, not personalizing for people.” This approach often involves segmenting customers to align them with specific products and services, rather than genuinely understanding individual needs.

A Fundamental Flaw: Bankers often fail to grasp the essential differences in how men and women engage with financial services, particularly concerning investments. Many institutions, he notes, still largely disregard women as primary financial decision-makers.

For many women, the core issues stem from a perceived lack of knowledge and confidence in financial matters. Lacroix insists these are solvable problems, but only if institutions acknowledge the need to approach women differently than their husbands and sons. This also includes recognizing the growing demographic of single women who manage their own finances.

Distinct Approaches: “Women are more inquisitive. They like to see more options. They need to be walked through information, versus just being sent the information,” Lacroix explains. “Women ask more questions, and they are often really the ones managing funds in the home.” Despite this, banks frequently interact with women without acknowledging this reality.

Lacroix shares a personal anecdote: While assisting his daughter with a condominium purchase in Canada, he and his wife noticed a consistent pattern. “The bank relationship is with my wife. I’ve only ever been in that bank once, when I signed for our line of credit. Yet every document that has been sent to us has had my name on it, not my wife’s. Every email was sent to me, not to my wife,” he recounts.

Despite being in the modern era, this behavior remains common, Lacroix emphasizes. The consequence is a disconnect that harms banks today and will become even more detrimental as the next generation inherits wealth.

Strategies to Enhance Your Bank’s Engagement with Women

What concrete steps can banks take now to remedy this situation and secure their future? The key lies in identifying and addressing women’s specific pain points, such as their desire for diverse options and thorough explanations, making financial concepts more relatable.

Lacroix underscores that money is an inherently emotional subject for most people. Resistance due to how information is presented can severely impede engagement.

Solution 1: Listen More, Talk Less. Bankers can significantly improve relationships by prioritizing listening over lecturing.

Solution 2: Empower Women in Advisory Roles. Increase the representation of women in client-facing positions within branches, particularly in financial planning and wealth management.

Solution 3: Revamp Marketing Strategies. “Banks don’t market to women, they market to American families,” Lacroix states. “They market to small business owners, but they don’t market to women. You show me a bank that has a marketing campaign that talks to women. Very few banks do that.”

A glance at the homepages of most banks and credit unions often confirms this observation. The generic imagery suggests a lack of understanding, especially considering the increasing number of single women managing their own finances.

Forge Intergenerational Connections Before It’s Too Late

Beyond retaining current customers and their assets, how can institutions effectively bridge the gap to the inheriting generation, encompassing both women and men? This is crucial for gaining an edge over less adaptive competitors.

Market Realities: Younger generations are inundated with financial choices daily, from competing chartered institutions to non-bank disruptors like Wealthfront and Robinhood, alongside traditional players. Yet, a surprisingly simple answer lies within reach: ask current wealth-accumulating customers to introduce your institution to their children.

The names of future inheritors are often readily available on beneficiary lists. While direct outreach is a significant misstep, seeking permission to initiate contact can be the critical first step in cultivating relationships with the next generation.

Lacroix shares another personal example where he and his wife were involved in a family transaction that connected them to two subsequent generations. He notes they would have gladly facilitated introductions, but the bank missed this prime opportunity.

Why Banks Fall Short: Lacroix attributes such missed opportunities to an outdated attitude and inadequate training. Financial advisors often adopt a passive “guru” role, waiting for clients to seek their wisdom. To truly succeed, they must integrate a proactive sales initiative.

Advisors don’t need to wait for opportunities to arise. Key life-stage transactions, such as securing a mortgage, present ideal moments to introduce the concept of financial planning and wealth management. This necessitates adequately staffing institutions with advisors who can readily engage in these impromptu, introductory meetings. For instance, an advisor could inquire: “You’re taking a big step, buying a home. Could I introduce you to Jane Smith, one of our wealth management advisors?”

Nurture the Connection Once It’s Established

Even after successfully making such an initial connection, it’s merely the beginning. Sustaining and strengthening this bond requires nuance and dedication.

Abandon Stereotypes: Understanding younger generations demands a sophisticated approach. It’s easy to assume they exclusively favor digital channels and rely on apps or AI for financial advice.

However, Lacroix’s firm’s research reveals an intriguing trend: individuals, even younger ones, who utilize AI for financial insights also overwhelmingly consult human financial advisors. They tend to leverage AI to build foundational knowledge and prepare for more in-depth discussions with their advisors.

Key Strategy: Embrace “Live” Interactions. Lacroix firmly believes that banks and credit unions should prioritize physical meetings that bring different generations together. This includes both private one-on-one sessions and informative seminars designed for benefactors and beneficiaries. The goal is not to disclose sensitive financial plans in group settings, but to foster a comprehensive family understanding of wealth management.

“It’s an opportunity for the advisor to build a relationship between the parents and the inheritor,” Lacroix emphasizes. This represents a strategic investment by the institution in its own future growth.

During his presentation, Lacroix will delve into four specific office design concepts crafted to facilitate these crucial meetings, ranging from dedicated in-branch wealth management offices to standalone wealth management centers.

Source: Thefinancialbrand.com