Millennials and their approach towards finance
About 40 percent of the global adult population is under 35 years of age and this number is most likely to be doubled by 2020. Millennials also known as the Generation Y have a keen sense of understanding of how the market runs, have deep entrepreneurial ambitions and a have a better understanding of investment when compared to the Baby Boomers.
Millennials have a short term and quick returns oriented approach when it comes to wealth management and planning, and this reflects in their interest in investing in emerging technologies and markets like Blockchain and Cryptocurrency.
According to a recent study, millennials believe in a cashless economy of which 33% do not believe in the need for the existence of a bank. The savings models, however, are still largely cash-based with more than 52% relying on cash-based savings.
Rise of a self-taught and data-centric user base:
Millennials are the future wealth management clientele and Financial organizations are now finding ways to cater to this intelligent, inquisitive, and self-service based user groups by relying on technology-based platforms to offer its users a wealth management applications that inspire transparency and trust. Technology platforms also allow full access of the functionalities to its users such as portfolio monitoring, analytics, and recommendation.
Wealth management companies are now adopting an analytical approach to cater to this generation of users by providing insights that are actionable, resourceful, and are available at their disposal with increased convenience.
Millennials as a generation strongly consider the social presence of any company to create a persona before investing in them mentally or economically.
Financial institutions in the wealth management space must fine-tune their current legacy systems to morph into a system that is in sync with the current consumer base as delay will only increase the cost of conversion or impact the company by losing its clients to early adopters.
And this is where Valuefy’s award winning wealth tech solutions are helping empower private banks, wealth management companies and family offices to serve their investors better!