Wealth Management Value Propositions for Millennials and their Consumer Preferences in Russia

Nowadays many companies are actively studying millennials and their consumer preferences. Rapid technological advancements that took place during their childhood and youth have influenced millennials and made their consumer preferences quite different from what previous generations tend to demonstrate. As millennials are maturing and approaching their years of peak consumption, while individuals from previous generations start to retire and cut on their spending, an ever-growing amount of global consumer spending will be attributed to millennials in the nearest future. In a situation like this, future commercial success of many companies depends on whether they will manage to either tailor their existing value propositions to consumer needs and preferences of millennials or come up with new ways to serve this clientele. Among other industries, this problem is especially relevant for financial services overall and wealth management in particular as the amount of wealth controlled by millennials is expected to grow dramatically in the nearest future. Given this, financial companies are actively studying millennials and pursuing opportunities to create innovative value propositions that would attract them. The aim of this research was to study consumer preferences of millennials in Russia towards wealth management and to develop hypotheses of potential value propositions based on them. This paper includes a secondary research of millennials' consumer preferences towards financial services and wealth management, a detailed analysis of examples of already existing innovative value propositions in wealth management for millennials, and a tailor-made empirical research on millennials' consumer preferences towards wealth management in Russia. Based on the results of the empirical study, several important practical conclusions were made, and three distinct potential wealth management value propositions for millennials were formulated.