A new Accenture report identifies four key areas of focus for wealth and asset management firms to employ that are vital to attracting, engaging and retaining Generation D investors: • Customer analytics. • Self-directed tools. • Community connections. • Gamification.

1. Connecting with Gen D:
Attracting, engaging, and retaining the next generation of investors

2. Page 2 | Generation D—How to attract, engage, and retain the next generation of investors
In a recent survey of over
1000 current and future
investors, Accenture identified
a significant segment unlike
any traditional demographic,
and termed it Generation D
(Gen D). These investors are not
differentiated by their age but
rather by their broad adoption
of technology, especially their
deeply ingrained use of digital
and social channels in almost
every aspect of their lives. While
Gen D investors are skeptical
toward financial advisors (FAs),
wealth and asset managers can
secure their foothold with this
group by integrating digital
communications into their
relationships.

3. Actively seek financial advice
B
59%From any source
40%From financial advisor
O
Overestimate investor knowledge
“My client is extremely knowledgeable about investing”
12%
42%
Gap Actual
FA Assumption
Actual
FA Assumption
Actual
FA Assumption
Investor
Advisor
Investor
Advisor
Misinterpret client’s investment style
Aggressive investors
13%
28%
Gap
Moderate investors
51%
34% Gap
Misjudge strength of relationships
“We have a personal relationship”
38%
63%
Gap
“Takes time to know me”
67%
42% Gap
Manage financial transactions
and conduct research online using multiple devices
Computer users
94%
Smartphone users
78%
Tablet users
39%
Page 3
Connecting with Gen D:
Attracting, engaging, and retaining
the next generation of investors
Chart 1. Bypassing Advisors
Chart 2. Advisor Perception vs. Investor Reality
Chart 3. Investors Always Connected
The Accenture study revealed that
59% of these potential clients sought
financial advice, but only 40% sought
advice from their financial advisor
(see Chart 1). Other sources of advice
included investment websites, online
videos, and webinars.
The study also revealed that when Gen D
investors do consult their FAs, a surprising
disconnect exists (see Chart 2). Advisors
tend to overestimate the investor’s
knowledge, misunderstand investment
style (advisors believe Gen D investors
are more aggressive and less risk averse
than they really are), and overestimate
the strength of their advisor-client
relationship.
Gen D investors are “always on” consumers
who have a high level of education,
wealth, and positive attitudes toward
technology in their lives. Based on insights
provided by these investors and their
advisors, Accenture has identified four
key areas of focus for firms to employ
that are vital to attracting, engaging,
and retaining these investors:
• Customer Analytics
• Self-Directed Tools
• Community Connections
• Gamification

4. Page 4 | Generation D—How to attract, engage, and retain the next generation of investors
Gen D investors’ needs and
expectations are changing as they
become more accustomed to a
richer, more diverse, multi-channel
experience for financial transactions
and communications. They expect
their FAs to be responsive and
proactive. Wealth and asset
management firms armed with
real-time and predictive analytics
can better address these investors’
needs and expectations, especially
within the digital environment.
Analytics can help firms and
ultimately advisors gain a deeper
understanding of their clients’
portfolio and help proactively
identify the “next best action"
based on their clients’ potential
needs and key future life events.
The four key areas pivotal to connecting with Gen D
1. Customer Analytics
Through robust opportunity-based
analytics, firms can leverage existing
client intelligence to better target
products to specific clients through
enhanced data-driven segmentation,
therefore, increasing existing client wallet
share. Analytics can also provide account
transaction information, as well as a
deeper understanding of a customer’s
risk profile, campaigns, and channel
involvement, even the client’s
interactions and behavior information.
Additionally, by viewing assets and
liabilities of current and future Gen D
investors—compiled from internal data
sources, credit bureaus, external vendors,
and US census—a “Decision Tree” approach
can help identify a client’s propensity to
buy. On a smaller scale, a product, a
distribution channel, and an offer can
be created and tailored to each Gen D
investor’s unique needs. Firms can prioritize
this segment in the marketplace, then
model how to speak to them.
Regardless of a firm’s starting position on
the analytics journey, a “Pilot and Assess”
approach may make sense. Pilot and
Assess includes assessing relevant data
based on strategic alignment, completing
a Proof of Concept, and prioritizing
findings to develop a value-driven
business case, which can help assess
model development needs against an
organization’s strategic priorities and
then identify gaps.
While many firms are reluctant to embrace
analytics-based segmentation—it seems
daunting to implement—the Pilot and
Assess approach suggests starting simple
and small. Some firms are taking this
smaller-scale approach to prove the
value of analytics to drive real-time
insights and offerings before moving on
to larger-scale initiatives.
Wealth and asset management firms can
leverage analytic tools to understand
client needs, behaviors, and preferences.
Firms have a unique opportunity to
embrace and leverage the holistic view
data offers, provide these tools to their
FAs, and drive profitability to the digital
front line.

5. Page 5
Field studies
Customer
Analytics in Action
For a wealth-based Italian bank that
was experiencing a high rate of
account closings, Accenture helped
to structurally improve its capability
to “accelerate attrition attack”
and reduce the closure of current
accounts. Accenture developed
actionable segmentation and “lost
client” behavior analytics. We built
rules and churn predictive models
for each segment. A pilot test within
39 network branches resulted in: an
82% contact rate for wealth and
small business clients; a 330% drop
in churn rate among high-risk clients;
and a 270% drop in churn rate
among medium-risk clients.
For a large US private bank, Accenture
developed client-centric marketing
programs for high net worth clients
to increase “share of wallet.” Relevant,
precise cross-selling led to a 25%
growth in assets within two years. In
addition, service channel realignment
reduced cost to serve by 15%. This
enabled the bank to win back 30% of
lost assets and increase its “share of
wallet” by 5%.
The Pilot and Assess phase is the first step of a multi-phase analytics journey intended to
bring the firm closer to its advisors, clients, and target profitability
Chart 4. Pilot and Assess
Identify Strategic
Alignment
Execute
Proof of Concept
Develop
Value Proposition
• Assess model development needs against key strategic
priorities and discovered gaps
• Execute Proof of Concept based on identified gaps
• Identify quick wins
• Develop the analytics road map and value proposition

6. Page 6 | Generation D—How to attract, engage, and retain the next generation of investors
Many Gen D investors participate
in self-directed investing. Of the
investors surveyed, 65% view
themselves as entirely self-directed
or partially assisted, while only 35%
stated they use an FA exclusively.
With the growth of the Gen D
market, the self-directed market
will also grow. Investment firms
that embrace this shift and offer
effective, interactive tools for
investing will be at the forefront
of cultivating and maintaining
relationships with Gen D investors,
as well as building the firm’s brand
and ultimately increasing their
market share.
2. Self-Directed Tools
Gen D investors expect their firms to
provide online investment and education
tools. Firms can provide these investors with
an online tool kit—financial planning,
portfolio insights, performance reporting,
educational learning tools, webinars,
access to research, thought pickers/
screeners, even “fantasy investing” (also
see “gamification” on page 10)—to
engage with clients in their preferred
environment. This involvement enhances
the firm’s brand and connects it to the
investor in a distinctive way that can
differentiate it from the competition.
Gen D investors expect real-time service,
and financial firms can win their loyalty
based on how they handle self-directed
interactions. The key is to provide options
for the investor to interact and conveniently
E-Trade and Fidelity—the leaders of Forrester’s Mobile Wealth Management
Benchmark—and TD Ameritrade all enable clients to view their portfolio
allocations against a target allocation and take action to rebalance. Fidelity’s
new Guided Portfolio Summary goes the furthest, pulling in account information
from other financial institutions to show the client’s total asset allocation
and investing style across all the firms the investor uses.1
TD Ameritrade rolled out mega–drop-down menus that expose the site’s
information structure early, enabling users to scan the contents of main
menu categories to see where they’re likely to be able to complete their
goals, and then get deep into the site quickly.2
Field studies
Effective
Self-Directed Tools
link with their firm, such as contacting
their FA through web chats, messaging,
and other online channels, on their terms.
As self-directed technology proliferates,
firms leading this charge are also
rebranding their products, refreshing their
hardware, and adding infrastructure to
enhance performance. With anytime,
anywhere Internet accessibility, self-
directed Gen D investors are driving an
entirely new type of investment mindset
and behavior. This segment offers a great
opportunity to the firms who provide
dynamic, engaging, and relevant tools,
and to the FAs who embrace these tools.

7. Page 7

8. Page 8 | Generation D—How to attract, engage, and retain the next generation of investors
3. Community Connections
Gen D investors will interact with
a firm’s brand in ways the firm
cannot control. This happens on
social networks, the firm’s website,
its competitors’ websites, and in
blogs. Investors can share their firm
and advisor experiences through
social media by contributing to
existing communities or creating
a new community in which clients
can interact.
Successful firms continually reevaluate
their social media strategy to ensure
they are intentional about how they are
optimizing brand experiences within the
properties they own and those they don’t.
It is important for investment firms to
link with existing social channels when
developing these communities. These
Gen D “digital natives” are increasingly
using blogs, forums, ratings and reviews,
branded networks, and location-based
services to engage with their communities.
While they share investment knowledge
and opinions, they also become more
educated about investment opportunities
and products. Firms have the opportunity
to create a culture and provide the
resources to interact directly with this
Gen D segment. FAs can become an
active part and, potentially, a facilitator
in these communities.
An important aspect for firms to
remember is the need to be cognizant
of the guidelines and compliance rules
of engagement while navigating social
media. In order to ensure compliance,
many firms are adopting FINRA
regulations, supervisory policies, and
procedures for FAs who participate in
social media sites for business purposes.
For example, FINRA considers Internet
and social media sites the same as
written and in-person communication.
Publicly available websites can be
considered advertisements. Use of email,
instant messaging, and password-
protected websites can be deemed as
sales literature or correspondence.
Chat room discussions are considered
public appearances.3
Firms that can implement a strategy,
as well as provide guidance and a plan
on how to leverage the new media for
their FAs so they can actively engage
with Gen D investors in this environment,
will have a powerful way to engage
this market.

9. Field studies
Engaging Social
Communities
Page 9
Social media is any interaction where people are empowered to talk
to each other through digital channels.
Chart 5. Highly Engaged in Social Media
Top four platforms used by Gen D investors surveyed
Facebook
91%
31% 31% 31%
Twitter Google+ LinkedIn
Accenture developed a conceptual
design and pilot project to address
a large, global wealth manager’s
overall social media monitoring
strategy. The pilot project iteratively
improved predefined services and
output configurations to meet this
firm’s unique requirements and
integrated them into its business
processes and organization.
Subsequently, Accenture designed
a multilayer operating model that
defined processes, structure and
technology components, and human
resources needed to run the program.
Together, this was brought to life
as a fully functional social media-
monitoring capability and deployed
into market where the firm now
performs the tracking on its own.
Morgan Stanley was the first top-five
US brokerage firm to allow financial
advisors to use LinkedIn and Twitter.
These advisors and agents can post
updates from libraries of preapproved
content to seed their social media
interactions. TIAA-CREF uses social
networks to demonstrate thought
leadership on the markets and on
financial topics of immediate interest
to consumers and B2B clients. Bank
of America, along with several other
institutions, uses Twitter for customer
service and customer outreach.
Multiple tweets per day keep the firm
top of mind.4

10. Page 10 | Generation D—How to attract, engage, and retain the next generation of investors
4. Gamification
Gamification—creating simulation
“games” to engage the Gen D
investor—takes the essence of
what makes games so compelling
(and sticky) and applies it to
non-game contexts. Gamification
provides investment firms the
ability to offer a more interactive
and differentiated customer
experience. This is achieved by
incorporating a game-like range
of features such as challenges,
contests, and rewards into
investment activities and
simulations.
Creative “fantasy investment” tools are
a great opportunity to demonstrate the
full range of services the firm provides
and, in the process, connect the user
with their brand. Based on the analytics
leveraged to learn more about potential
investors, a simulation trial can be
offered to clients or prospects who meet
certain investing criteria. Gen D investors
can open trial simulation accounts to
test the experience of interacting with
the firm. Because self-directed tools are
designed to create engagement and
participation—part of the mix to the
overall growth strategy—Gen D clients
can receive messages prompting them to
invest risk-free. Investors can measure
these “fantasy investment” returns and
see how they would have performed in
the market without risking any real money.
Fantasy investing is a great way to initiate
a relationship with Gen D investors early
in their investment life cycle, when they
have fewer funds but high investing or
investment potential.
In addition to being an engaging way to
connect with customers, gamification
can provide firms with valuable investor
insights. By creating an environment
where investors can fantasy-buy, firms
can gather insights and test products
and services. Firms can benefit greatly
from this enhanced repository of
investor data gathered via gamification
—data provided willingly and on an
ongoing basis by the Gen D investor.
Citi launched a social media credit card with a variety of game mechanics
employed. Users earn points for rewards and compete for the top spot on the
social leaderboard via a Facebook app. They can also check in at different
locations for deals and share deals with friends via the app for more points.5
A good example of gamification outside financial services is Nike+. Nike+
measures and records the distance and pace of a walk or run, and that
information is transmitted to the user’s iPod, where it is synced online and
shared with the Nike+ community through social media. iPod software
rewards users if they reach a milestone with congratulatory messages from
celebrity athletes. In 2011, membership in Nike+ grew 40%, which helped
boost revenues in the running category by 30%.6
In another example of non-financial services gamification, Marriott wanted
to expand in less established growth markets and needed a way to engage
and excite Gen Y users to fill tens of thousands of open positions. The
company launched the “My Marriott Hotel” Facebook game, where players
operated their own Marriott hotels. In 2011, the game educated over 12,000
potential hires on different career paths in hospitality, while creating
significant brand awareness for Marriott.
Field studies
Successful
Gamification

11. Page 11
Engaging the Gen D Investor
Wealth and asset managers now have
the ability to identify and actively
market to this unique Gen D group—
75 million active investors with $27
trillion in assets—and engage them
in their preferred environment, better
armed with insights specific to their
needs and propensity to buy. Whether
it is by employing analytics-based
segmentation, offering self-directed
tools, creating compelling social
channels, or offering no-risk
gamification, firms can better position
themselves to be relevant to the
digitally sophisticated next generation
of investors. Firms that provide the
resources and touch point opportunities
for their FAs to interact effectively
with Gen D investors will have a
great opportunity to earn and keep
their business.
In this digital age, financial advisors
must be accessible to clients on their
terms, including the channels and
interactions through which clients are
most comfortable engaging. Gen D
investors also expect their advisors
to take the time to understand their
individual needs and offer them
insightful advice on how to achieve
their financial goals. If firms provide
financial advisors the training and
tools to engage this large and viable
Gen D market where and when they
prefer, both will benefit. If they don’t,
Gen D investors will find someone
who will.

12. About Accenture
Accenture is a global management
consulting, technology services and
outsourcing company, with more
than 246,000 people serving clients
in more than 120 countries.
Combining unparalleled experience,
comprehensive capabilities across all
industries and business functions,
and extensive research on the world’s
most successful companies,
Accenture collaborates with clients to
help them become high-performance
businesses and governments. The
company generated net revenues of
US$25.5 billion for the fiscal year
ended Aug. 31, 2011. Its home page
is www.accenture.com.
Copyright ©2014 Accenture
All rights reserved.
Accenture, its logo, and High
Performance Delivered are
trademarks of Accenture.
Notes
1
Forrester Research—“Trends 2013: Digital
Wealth Management,” by Bill Doyle,
September 24, 2013
2
Ibid.
3
FINRA website—FINRA.org
4
Ibid. 1
5
Tech In Asia, “The Social Credit Card,
Will You Get One?” March 9, 2012.
Retrieved September 10, 2012 from
http://www.techinasia.com/clear-platinum-
card-citibank/
6
Nike, “2011 Letter to Shareholders,”
July 13, 2011
Contacts
Alex Pigliucci is the Global Lead for Wealth
and Asset Management Services.
alex.pigliucci@accenture.com
George Korizis is a Senior Manager
in Distribution and Marketing in
Financial Services.
george.p.korizis@accenture.com
Jessica Townsend is the Global Operations
Program Manager for Wealth and Asset
Management Services.
jessica.t.townsend@accenture.com
About Accenture
Accenture is a global management
consulting, technology services and
outsourcing company, with approximately
275,000 people serving clients in more
than 120 countries. Combining unparalleled
experience, comprehensive capabilities
across all industries and business functions,
and extensive research on the world’s
most successful companies, Accenture
collaborates with clients to help them
become high-performance businesses and
governments. The company generated net
revenues of US$28.6 billion for the fiscal
year ended Aug. 31, 2013. Its home page is
www.accenture.com.
This document is produced by consultants at Accenture as general guidance. It is not intended to provide specific advice on your circumstances. If you require advice or further
details on any matters referred to, please contact your Accenture representative. This document makes descriptive reference to trademarks that may be owned by others. The use
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