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Personal wealth is of secondary importance in banking with younger generations. Private bankers therefore take on a different role entirely, says finews.ch editor Samuel Gerber in an essay for finews.first.

finews.first is a forum for renowned authors specialized on economic and financial topics. The texts are published in both German and English. The publishers of finews.com are responsible for the selection.

At the beginning of this year, UBS merged its wealth management under the roof of the new global wealth division. Time will tell whether the world’s largest private bank will be successful with the mega-unit. What we can say is that UBS management has not been altogether successful in finding a suitable name.

Because wealth – as in «Global Wealth Management» – isn't what it is all about in future. Instead, younger generations such as millennials will demand something entirely different.

Vishal Jain has an inkling of what those wishes might be. The erstwhile consultant at McKinsey works for U.K. insurer Prudential – the company incidentally where Credit Suisse CEO Tidjane Thiam was in charge until 2015. Jain has the futuristic title of chief financial wellness officer. He recently penned an essay for «Institutional Investor» where he presented what he believes the main demand in future will be: «financial wellness».

«Making money grow is secondary»

Sounds like consultant lingo. But a closer look shows that the concept has a ring to it that made it worthwhile for a financial services company such as Prudential to have an executive position created for it.

What is it about? Classic private banking is and always has been about making assets grow. From the point of view of a client – why else would a millionaire pay for the services of a wealth manager? From the point of view of a bank, where net new assets are a measure of market share, prestige and bonuses.

In financial wellness however, making money grow is secondary. It is more about using available assets to live a fulfilled life.

Sounds esoteric, especially for the 40-plus-year-old executives who gave their all at big corporations to earn a decent living for their families, with a house, a pension to look forward to and life’s little luxuries.

«They don't want to be the hamster in the wheel»

The well-educated millennials have different look on priorities: the hamster wheel is not for them. For them it is more a question of «you live only once». Financial well-being fits hand in glove with this attitude, together with personal health and a sensible approach to other human beings and the environment.

Financial wellness will include – that at least is the expectation – everything that was available in the universe of financial services. Instead of a bank account, funds, insurances and pension plans, you will get a holistic offering covering all aspects of financial well-being.

Sounds utopic? Such offerings are already available in an infancy stage. Readily available robo advisers include a multitude of securities and products for a clearly defined investment profile via a mobile phone app. Digital brokers are sifting through thousands of polices to get the right one for the risk profile.

«Generation of the unlucky»

As the consumer is compiling their personal product by taking account of their own demands, they take the offers as being more in tune with their needs – ideal as such for younger generations constantly on the quest for meaning.

It is evident that the search for financial well-being is a sensible enterprise. Because financial wellness will be a rare commodity. The millennials can take for granted that they will live several decades longer than their predecessors. And hence their pension plan and personal savings have to last longer.