Sustainability in wealth transfer: securing future generations' investments

Listen to Markus Alin as he interviews the co-founder of Datia, Juan Manuel Serruya, on how wealth managers can incorporate sustainability into their work.

The wealth management industry is evolving, and a notable trend emerges: an increasing transition of wealth from older to younger generations.

In the video, Juan and Markus discuss the importance of sustainability reporting to answer the demands from end-clients as well as regulators.

The wealth management industry is evolving, and a notable trend emerges: an increasing transition of wealth from older to younger generations. It is evident that the ability to seamlessly incorporate sustainability into the investment process stands as a significant competitive advantage.

Keeping wealth from older generation to younger

Wealth managers now have pressure to report on the sustainability preferences both from the regulators, such as MiFid II, and from their end clients.

75% of investors under 45 consider sustainable investments to be an important aspect of their deployment of capital, says Juan Manuel Serruya.

As more money continues to transition from older generations to younger, being able to offer sustainability in your investment process gives you a competitive advantage. It's becoming an increasingly bigger problem to keep the wealth from one generation to the other which makes this shift so important, where it could drive the wealth to stay for future generations.

Requirements on wealth managers before requirements of reporting from companies

Regulators have put requirements on wealth managers before they put the requirements on reporting sustainability on the companies. How does Datia handle that?

Many companies are already reporting their sustainability even if they are not covered by NFRD or CSRD which makes data easy to extract, and we expect more data coming as CSRD continues to come into force. If there is no data to extract, Datia provides free tools for companies to fill in to better understand their impact.

This is especially appreciated in the nordics where many smaller companies may not have the resources to put together a report themselves. If Datia is not able to engage with the company an estimation is made if there is enough data to do so, and if there is not, then that company is not covered, says Juan Manuel Serruya.

Wealth managers incorporating sustainability into their work

Wealth managers that are in the beginning of incorporating sustainability into their work should look into what they are equipped to do and what solutions they have today to be able to understand how they can serve their end clients.

They should look at this as an opportunity to differentiate their service towards the end clients to be able to offer more personal advice that covers more aspects of their sustainability preferences. So that they can, over time, drive more other capital towards sustainable investments as well.

The Nordics is a leader in sustainability, but even then, wealth advisors in the region are not well equipped to be able to answer these demands coming from regulators and end clients. I am excited to be able to equip investors in the nordics and beyond, with the tools and the data they need to make these investment decisions, says Juan Manuel Serruya.

Markus and Juan, the founders of Sharpfin and Datia, express their enthusiasm for their collaboration and are excited to integrate Datia's data stack seamlessly into the Sharpfin solution. A solution that empowers wealth managers to provide intelligent and tailored advice to end clients, encompassing a broader range of their sustainability preferences.


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