Here are some facts. In a digital mix, 66% of millennials want a self-directed, investment portal with advisor access, 63% of them want a mobile platform directly to advisors and 67% of millennials want software that enables the tracking of transactions, payments, and other financial data in real-time to provide better recommendations. Millennials are by far the most studied generation in history, and Accenture’s is only one of the studies, but all of them point in the same direction …
Who are millennials that are not only leading, but also bringing a completely new way of living and managing personal finance?
Millennials are generally seen as being “the digital generation.” Millennials and also Generations Z’s are people who were “born” with smart devices in their hands. These generations have had smartphones and constant internet access as long as they can remember. There are several categorizations of millennials, but the most common use of the term refers to people born between the early ‘80's to the beginning of the 2000's, that is, falling currently into the 15-35 age category. This is the largest and most studied generation in history and there are also many studies that specifically look at how this generation thinks about money.
The Millennials' influence on baby boomers
90% of millennials check their smartphones within 15 minutes of waking and, in general, are keener than baby boomers to use mobile applications. Millennials also have a more demanding approach towards digital by seeing it as a deal breaker if an institution is not doing it well enough. According to the research BCG has done, we should keep in mind that for millennials, flawless digital is the norm, and even a small hiccup can have far-reaching consequences, especially in a field like Wealth Management where trust is key. If we add that this generation is also more likely to share good and bad experiences with others, wealth advisor firms understandably need to keep this generation in focus if they wish to carry on with business, also in the long term.
In 2020, millennials will start earning money, and the estimate of their earnings is said to be €20 Tn and 84% of them will seek financial advice. Fact.
As already mentioned, several studies have been undertaken on millennials, and one of them (according to TargetMarketing) shows not only that millennials are close to their parents (most probably their parents are baby boomers), but that they feel they have a serious obligation to keep their parents on-trend. And that is why they are the biggest influencers on their parents. 89% of millennials talk to their parents at least once a week and give them advice on purchases, goods, and services. This, coupled with the fact that when it comes to impactful decisions like investments, 80% of millennials discuss them with their parents, making them the most trusted advisors. And, millennials put a huge emphasis on digital; they see it as a deal breaker if an institution is not doing it well enough. Last but not least, 57% of millennials would switch banks for a better digital user experience and most of them would consider a branchless digital bank, as we can see in fast-growing trends with the new banks, such as N26, Revolut etc.
If they could so simply change a bank, why not change their personal financial advisor if their current one is not “up-to-date” with upcoming digital trends in the world of finance?
MoneyRebel is more than just another tool for financial advisors. It is an all-in-one platform that offers a digital advisory experience that will help financial advisors evolve their business with millennials in mind.