Tech adoption crucial for wealth transfer to Gen Zs – Investment advisors

Investment experts have advised that when it comes to transferring wealth to Generation Z, digital strategies must be at the forefront.

This came to the fore at the recent Cordros Summit in Lagos, with the theme ‘Wealth Revolution’, where leading financial experts gathered to explore innovative strategies for transferring wealth to Generation Z.

According to reports, Generation Zs are in line to inherit trillions of dollars from their parents and guardians in the next 10 years globally with their penchant for holding assets in digital format.

Experts noted that it was important to tailor wealth transfers to fit their financial behaviours and expectations.

In his keynote address, the Chief Executive Officer of Globus Bank, Elias Igbinakenzua, said that research had shown that there is about $90tn to be transferred to the next generation majority of whom are Gen Z in the next ten years.

He noted that Gen Zs were thinking digital, “they are not like what we used to know in time past. We must move with their thinking and create a framework that will sustain that wealth when it’s transferred”.

He said, “Today, we have over $1tn in market cap in digital assets, and if we don’t understand how that works and impact the economy we will be on the losing side because the Gen Z are thinking global, we that will transfer the assets to them must think global, if we don’t do so, most of them will flee from our midst to global realm.”

Speaking on Nigeria’s economic outlook, the Chief Executive Officer of The CFG Advisory, Tilewa Adebajo, wondered if the country’s population was an asset or liability.

According to Adebajo, any population that does not have purchasing power is not an asset but a liability.

“During the global financial crisis of 2008, it was the prudent in our physical planning that helped Nigeria navigate through the challenge of that period but what we have today is different from what we have at that period and that’s simply what is responsible for what we are passing through today.

“We have consistently followed the path of bad physical management to destroy our value. How do you grow, preserve and even transfer wealth in an environment with bad physical management?’ he added.

Also, the Managing Director of Cordros Assets Management, Gbolahon Aina, remarked, “Nigeria has a youthful population, and most of them are investing in digital assets. At the moment, we have a considerable number of Nigerian youths in Fintech and with government support, I think the future will be great for them.

“To the Nigerian youths, I will advise that they seize this opportunity, invest in assets, learn more about investment and they should not be afraid to take risks.”

On his part, the Group Managing Director, of Cordros Capital, Wale Agbeyanji, wanted the government to create an enabling business environment for Nigerian youths to give them the room to work with the trends in the global economy.