Bridging the Generation Gap. World of Structured Products for Investors of All Ages

Younger investors typically have a higher risk tolerance, given their longer investment horizon and capacity to recover from potential losses. This makes them more inclined to explore structured products, which can offer higher returns and a diverse range of risk profiles.

However, there is a question of whether a generation gap exists between these groups when it comes to investing in structured products.

Structured products have emerged as a fresh asset category in the European and Swiss markets, piquing the interest of many investors, both young and old.

These products offer attractive returns and unique investment opportunities, capturing the attention of curious individuals and professionals alike.

However, there is a question of whether a generation gap exists between these groups when it comes to investing in structured products.

A potential generational divide?  What are the expectations and preferences surrounding accessibility, search solutions, platforms, research criteria, and the fast execution of structured products.

The Generational Divide.

As financial markets evolve and become more complex, a generation gap has become more apparent among investors. Generally, older investors have accumulated more wealth and experience, allowing them to rely on traditional investment tools and strategies.

On the other hand, younger investors are often more open to new and innovative investment products, such as structured products. This divide could be attributed to the varying levels of risk tolerance, investment knowledge, and familiarity with technology between the generations.

The older generation, for instance, might be more hesitant to invest in structured products due to their complexity and potential risk. They may prefer more straightforward and predictable investment avenues such as bonds and dividend-paying stocks.

In contrast, younger investors, particularly millennials and Gen Z, are more tech-savvy and open to exploring innovative financial instruments like structured products.

Younger investors tend to be more financially literate and open to exploring new investment options. They are more likely to have been exposed to structured products through financial education or online research, giving them an edge in understanding these complex financial instruments.

In contrast, elderly investors might be less familiar with structured products due to their long-standing reliance on traditional investment options such as stocks, bonds, and mutual funds.

Younger investors have different expectations when it comes to investment performance, customer service, and user experience. They demand faster execution, intuitive user interfaces, and personalized financial advice, which may not always be available through traditional investment channels.

Elderly investors, on the other hand, may prioritize trust, reliability, and human interaction over these factors. They may prioritize capital preservation and income generation over high returns, leading them to favor more conservative investment options.

Expectations for Accessibility, Search Solutions, and Platforms.

Investors of all ages have expectations for easy access to information, efficient search solutions, and user-friendly platforms when it comes to investing in structured products. However, there may be differences in the specific preferences and requirements of each generation.

Younger investors are more likely to expect digital platforms, mobile applications, and cutting-edge technology to facilitate their investment activities. They often prefer quick access to information, seamless transactions, and real-time data.

Older investors, on the other hand, might be more comfortable with traditional platforms like financial advisors and brokerage firms. They may also prioritize personalized customer service and human interaction over technology-driven solutions.

The criteria for researching and executing investments in structured products may also differ between generations. Younger investors tend to be more focused on convenience, speed, and simplicity. They may prioritize digital research tools, such as robo-advisors, AI-driven market analysis, and social media feeds, to inform their investment decisions.

Older investors, conversely, might prioritize in-depth research, analysis, and consultation with financial professionals. They may rely on financial reports, newsletters, and expert opinions to make informed decisions about structured products.

Their focus on long-term investments and capital preservation may lead them to consider factors such as credit ratings, issuer reputation, and product structures more closely.

The rise of digital platforms and online trading has made investing in structured products more accessible to younger generations.

They are more likely to use online brokerage services and trading platforms, which offer a variety of investment options, including structured products. On the other hand, elderly investors might find these platforms overwhelming and less user-friendly, leading to a preference for traditional investment channels.

Likewise, digitalization has played a crucial role in marketing and selling structured products to new generations of investors. As more financial services adopt digital-first approaches, investment platforms have become increasingly user-friendly and accessible to individuals of varying technological aptitude.

Digital platforms have enabled both young and old investors to access structured products and other investment opportunities with relative ease.

For the younger generation, digitalization has made structured products more appealing by simplifying the investment process, providing real-time data, and facilitating rapid execution. For the older generation, digital platforms may have reduced the perceived complexity and risk associated with structured products, making them more accessible and appealing as an investment option.

Digitalization is playing a pivotal role in bridging the generation gap in structured product investments. The emergence of fintech companies and the development of advanced trading platforms have made structured products more accessible, transparent, and user-friendly for investors of all ages.

By leveraging technology, these platforms are addressing the challenges faced by both young and elderly investors.