Financial advisors hoping to lure the next generation of clients will need to be able to provide them access to alternative investments, including cryptocurrencies and nonfungible tokens, bolster their social media footprint and be ready to provide enhanced personalization, according to a new report.

For example, 51% of investors globally are now familiar with sustainable investments, Refinitiv says. The finding is based on a survey of 1,500 self-directed and advised mass affluent and high-net-worth investors across 13 countries, including the U.S. and Canada.

But among advisor-led investors, only 44% are familiar with environmental, social and governance factors, compared to 53% of self-directed investors, according to the survey.

Meanwhile, 23% of millennials think that NFTs will have the largest positive impact on financial markets, and 32% believe the same about tokenized assets, Refinitiv says.

Advisors have a receptive audience, however: 58% of advisor-led investors say that advisor recommendations are the most reliable source of information — and that rises to 62% among hybrid advisor and self-directed clients, according to the survey.

Nonetheless, advisors will need to meet investor demand: 70% of U.S. investors say they’re willing to pay more for personalized products and services, Refinitiv says.

“As investor needs continue to change and reflect new ways of investing and doing business, so too must those of financial advisors to retain clients and grow their business," according to Refinitiv. "Our report makes clear what those key investor expectations are and what financial advisors need to do to inspire confidence: provide a broader range of digital capabilities, personalized products and services, and alternative investment opportunities.”

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