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The $100 Trillion Wealth Transfer: How to Keep MilZ on Board

Author

Fonta Gilliam
June 23, 2025

In partnership with

As a fintech founder who partners with community banks and credit unions, I’ve seen the $100 trillion wealth transfer looming on the horizon – and it’s both an enormous opportunity and a wake-up call.

Over the next two decades, an estimated $80–$84 trillion will pass from aging Baby Boomers to their Gen X, Millennial, and Gen Z heirs. Banks and credit unions have spent generations earning the trust of their current clients, but will their kids stick around? Recent surveys suggest a rocky road ahead: a stunning 81% of young inheritors plan to switch financial firms within 1–2 years of receiving their inheritance. In other words, if we don’t start engaging these “MilZ” clients (Millennials + Gen Z) now, someone else will be managing Grandpa’s money very soon.

Why would the next-gen fire the advisors and institutions their parents trusted? Simply put, MilZ inheritors have different expectations. Many feel unimpressed by poor digital offerings and limited services at traditional firms.

Two-thirds of wealthy millennials say they expect advanced digital tools from their financial providers, yet nearly half complain about a lack of modern services and products. They’ve grown up in a mobile-first world – if an app or website frustrates them, they won’t hesitate to walk.

In fact, 83% of Gen Z have been frustrated by a bank process and demand more intuitive, personalized digital experiences. They also crave new investment options (from crypto to ESG funds) and a sense that their financial partners “get” their values and lifestyle. The bottom line: what made Mom and Dad loyal customers won’t automatically win the kids’ business.

The good news? Banks and credit unions can bridge this gap – if we act intentionally. In this issue’s deep dive, we’ll explore how to retain and attract these digital-first inheritors before and after the wealth transfer. I’ll share hard data on what MilZ want, real-world examples of institutions adapting to serve younger clients, and tactical tips (from product design to marketing) that can help regional banks and credit unions not only survive the great wealth shift, but thrive in it.

Let’s dive in!

In this issue

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ICYMI

  1. Gen Z to Credit Cards: We’ll BNPL Instead – In a first for J.D. Power’s surveys, 54% of Gen Z holiday shoppers used buy-now-pay-later vs. 50% using credit cards. Young consumers are gravitating to “buy now, pay later” apps at checkout – a signal that traditional credit cards are losing a bit of their shine with this crowd (banks are taking note and jumping into BNPL themselves).

  2. AI Hype Meets Human Touch – Over half of Gen Z and Millennials are excited about AI tools to improve their finances (think automated budgeting, faster service, personalized advice). But interestingly, they still trust humans more for big decisions like retirement planning. The future of advice looks “human + digital,” blending robo-efficiency with human empathy.

  3. Mobile or Bust for Gen Z Banking – A national survey shows 64% of Gen Z now use mobile banking apps as their primary way to manage accounts, while only 4% prefer visiting a branch. In other words, if your bank’s app experience isn’t seamless, you’re basically invisible to the new generation. (Bonus stat: 96% of all bank customers rate their digital banking as good or better – the bar is high!)

  4. Fidelity’s Teen-Friendly Investing – Fidelity is leaning into the next-gen with “Youth Basket” portfolios tailored to Gen Z tastes. These themed bundles (like Gaming, Social Media & Connectivity) let teens invest in brands they know, and come with snackable educational content. It’s a clever mix of product design and financial education to hook young investors early – and a cue that incumbents can innovate to engage Gen Z on their terms.

  5. Two-Thirds of Gen Z Feel Unprepared – A recent survey finds 67% of Gen Z adults lack confidence in their financial knowledge as the great wealth transfer looms. Many younger heirs haven’t worked with advisors (only 35% have) and most don’t have a plan for managing an inheritance. This “readiness gap” is a huge chance for institutions to step up with guidance, education and tools – before inheritances hit their accounts.

DEEP DIVE

Winning Over the Next-Gen Inheritors

For banks and credit unions, the math is eye-opening: roughly $83 trillion+ will change hands by 2045 in the U.S.

If 81% of next-gen heirs bolt from their parents’ advisors and banks, that’s a massive outflow of assets on the horizon. But flip that around – those who do win the trust of MilZ inheritors stand to gain billions in new deposits, loans, and investment assets. Treat the great wealth transfer as a strategic priority. As Charles Potts of ICBA puts it, “the key is to get involved with their heirs earlier” – before wealth passes down.

In practical terms, that means building relationships with your clients’ children today. Invite them into review meetings, host financial workshops for young adults, consider a referral incentive for multi-generational households. Show the whole family that you’re not just Grandpa’s banker – you’re a lifelong partner for them, too.

Double-Down on Digital (No, Seriously)

We’ve all heard that Millennials and Gen Z demand great digital experiences – but it bears repeating because it’s non-negotiable.

These consumers are “digital natives” who manage money with a few taps on a phone. If your mobile app or website is clunky, slow, or lacking features, younger customers will walk – fast. Nearly 83% of Gen Zers say they’ll drop a brand (including a bank) over a poor digital experience.

On the flip side, banks that nail convenience and usability can lock in loyalty. Make sure your mobile app is top-notch: clean UI, 24/7 functionality, personalization, and yes, maybe even some fun (see Issue #12 on gamification!).

Consider features that resonate with MilZ: in-app budgeting tools, early payday, P2P payments, crypto wallets, or integration with fintech apps they love.

Test your processes for pain points – one survey found most Gen Z have been frustrated by bank onboarding or payments. Smooth out those kinks with intelligent automation or AI assistants. Remember, this generation compares your app not to other banks, but to Uber, Instagram, or CashApp. That’s the customer experience bar.

Expand Your Offerings (Align with Their Interests)

Another reason inheritors plan to leave is “lack of services and products” at their parents’ institutions.

MilZ wealth-holders are interested in things that may not be your traditional bread-and-butter – and if you don’t offer it, someone else will. Case in point: alternative investments and crypto. 

Capgemini’s 2025 World Wealth Report found 61% of Millennial/Gen Z millionaires are allocating to higher-growth assets like private equity or digital assets.

They’re also more open to sustainable investing and impact funds (nearly 85% express interest in ESG investing ). While a community bank or credit union might not launch a private equity fund tomorrow, you can partner creatively.

Some banks now offer access to crypto trading via fintech partnerships, or curated ESG investment options through wealth management platforms. Even simple additions like robo-advisor portfolios, thematic ETFs (think green energy or tech), or allowing customers to buy fractional shares can signal to younger clients that you’re keeping up with the times

. In short: speak their investing language. Don’t make the mistake of assuming young heirs will be satisfied with the same portfolio and product menu that worked for their grandparents.

Educate, Empower, and Communicate

MilZ inheritors may be tech-savvy, but as we saw, many feel underprepared to manage a sudden windfall.

This is where banks and credit unions can shine – by coaching the next generation, not just selling to them. Consider offering financial education programs for young adults and new inheritors.

You don’t need a Wall Street budget to start sharing knowledge. Host a “Wealth 101 for New Inheritors” webinar. Create short, jargon-free guides on topics like “What to do when you receive an inheritance” or interactive tools that let users simulate investing scenarios.

And crucially, make sure your advisors or member service reps are proactive in outreach. After a client passes assets to their child, have your team reach out with condolences and an offer to help the heir navigate next steps.

If you wait for the inheritor to call you, you may already be too late. By stepping into the role of guide and educator, you build trust with younger clients before the money hits – and you position your institution as the helpful mentor rather than the old-school firm they want to ditch.

Embrace “High-Tech and High-Touch”

One of the biggest insights I’ve learned working with MilZ customers is that they don’t actually want purely DIY, hands-off banking. Yes, they demand digital convenience – but when life gets complex, they value human advice and empathy (arguably more than their parents did!).

The trick is to deliver personalized, human service through the channels they prefer. That might mean a video chat with a financial advisor instead of an in-person sit-down, or a text message check-in rather than a phone call.

It definitely means shorter response times and a sense that “my banker is available when I need them.” Interestingly, 62% of next-gen high-net-worth clients say they would follow their human advisor to a new firm if that advisor left.

They have loyalty to people who understand them – not necessarily to big-brand institutions. This is a reminder: invest in your talent and equip them with the tools to serve MilZ effectively. One-third of advisors in a survey complained about their firm’s lack of digital capabilities hurting productivity.

So train your team on new tech, give them modern CRM and planning software, free them from tedious paperwork via e-signatures and automation – let your people spend time connecting with clients. Finally, encourage your bankers to be active on the platforms next-gen uses.

That could be sharing tips on social media (within compliance), participating in community events or young professional networks, even creating short TikTok or YouTube explainers.

Being present and authentic where younger customers are builds the kind of rapport that no glossy brochure can.

Market What Matters to MilZ

Attracting younger inheritors isn’t just a product game – it’s also about messaging and values.

Millennials and Gen Z tend to choose brands (banks included) that align with their principles. They want to see genuine commitment to community, diversity, and sustainability.

A tip for regional banks and credit unions: leverage your strengths here! You’re already community-focused by nature; make sure MilZ knows it. Highlight your financial institution’s impact stories – maybe you funded a local youth center, or you have a program for first-time homebuyers. Encourage satisfied young customers to leave reviews or testimonials on social media.

According to industry experts, younger generations “want to be part of a movement, not just a big conglomerate”. So, frame your bank or CU as a community they can join and be proud of. For example, some credit unions are spotlighting their member-centric model as “banking with a purpose,” which resonates with Gen Z values.

Also, don’t shy away from showcasing diversity in your marketing – seeing people who look like them (in ads, branch staff, leadership) helps young clients feel understood. And finally, consider targeted campaigns around life moments: reaching out when a customer in their 20s gets their first job, or when a 30-something starts a family.

By showing up with relevant advice and tailored offers at the right moments, you’ll be front-of-mind when that inheritance arrives down the road.

Final Thoughts

The MilZ wealth transfer isn’t some far-off event – it’s already begun. The actions you take in the next few years will determine whether your institution captures its share of this $100T tidal wave or watches assets slip away to more agile competitors.

The encouraging news is that regional and community institutions can absolutely compete here by playing to their strengths: personal service, community trust, and now a willingness to adapt with technology and innovation. As I can attest, MilZ don’t hate banks or credit unions – we just need them to meet us where we are.

The ones that do will not only keep our business, but also our loyalty and advocacy. So let’s roll up our sleeves and get ready for the next generation of wealth. With the right strategy, we won’t just survive the great wealth transfer – we’ll help MilZ thrive, and grow together with them.

—Fonta

Meet the Future of Finance!

Wellthi Technologies—backed by Mastercard & Northwestern Mutual Future Ventures—offers a turnkey Virtual Advisor Technology app tailored for lowering branch costs, driving low-cost deposits, and maximizing billion dollar opportunities with under 45 consumers. Engage Millennials & Gen Z with social finance features that drive loyalty and deposits. Our platform transforms banking into a community experience with goal sharing, crowdfunding, and peer support—helping credit unions stay relevant, digital-first, and growth-ready. Seamlessly onboard new members, boost engagement, and unlock new revenue streams—all without costly tech investments.

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