Wealth Transfer to Gen Z Must Embrace Digital Strategies, Experts Urge
Investment experts have emphasised the necessity of prioritising digital strategies in the transfer of wealth to Generation Z. This insight emerged from the recent Cordros Summit in Lagos, themed ‘Wealth Revolution’, where top financial minds gathered to discuss innovative approaches to wealth transfer for the younger generation.
Reports indicate that Generation Z is poised to inherit trillions of dollars from their parents and guardians over the next decade, with a strong preference for digital assets. Experts underscored the importance of aligning wealth transfer methods with the financial behaviours and expectations of this tech-savvy cohort.
In his keynote address, Elias Igbinakenzua, Chief Executive Officer of Globus Bank, highlighted that approximately $90 trillion is set to be transferred to the next generation, primarily Gen Z, within the next ten years. He stressed the need to adapt to their digital mindset, stating, “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.”
Igbinakenzua further noted, “Today, we have over $1 trillion 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 Gen Z are thinking global. We who will transfer the assets to them must think global. If we don’t, most of them will flee from our midst to the global realm.”
Discussing Nigeria’s economic outlook, Tilewa Adebajo, Chief Executive Officer of The CFG Advisory, questioned whether the country’s population is an asset or a liability. He argued, “Any population that does not have purchasing power is not an asset but a liability.”
Adebajo reflected on the global financial crisis of 2008, noting that prudent fiscal planning helped Nigeria navigate that period. However, he warned that current fiscal mismanagement is undermining wealth creation and preservation, asking, “How do you grow, preserve, and even transfer wealth in an environment with bad fiscal management?”
Gbolahon Aina, Managing Director of Cordros Asset Management, pointed out the significant investment by Nigerian youths in digital assets, particularly in Fintech. He expressed optimism about the future, provided there is government support, advising young Nigerians to seize the opportunity, invest in assets, learn about investment, and embrace risk-taking.
Wale Agbeyanji, Group Managing Director of Cordros Capital, called for the government to foster an enabling business environment for Nigerian youths to allow them to align with global economic trends.
Photo credit: Bankrate
