December 19, 2018
Do millennials really expect financial advice to be as easy as ordering a curry from Deliveroo, or hailing a cab via Uber? It’s certainly the case that young people are comfortable with using technology to ‘check in’ on their investments, according to a new report from EY.
The report found that 61% of people now check investments via a website, and 12% via a mobile app. The report suggests that these technologies are empowering a new breed of young investor, both financially and technologically literate.
A recent Deloitte report found that more than half of young people would actually change their bank to get a better tech platform.
The report said, ‘They consider technology and online platforms an important aspect of financial advice, 57% would even change their bank relationship for a better tech platform.’
But the report found that while technology can help to engage young customers, face-to-face advice was still important.
The report said, ‘84% of millennials seek financial advice, clearly highlighting the fact that the necessity for world-class investment advice is still in demand.’
Tools such as Focus Wealth allow advisors to engage these tech-savvy customers via technology, by simplifying, streamlining and automating previously time-consuming manual processes. Smart digital software that enables wealth management teams, intermediaries and consumers to focus on accomplishing their financial goals with the minimum of effort, executed in a modern digital and easily-integrated interface.
Dave Upton, managing director of Focus Solutions said, ‘It’s about how you deliver financial advice. We have invested in automation, but we’ve always thought we’d end up with a combination of human and technology.’
The human touch definitely remains important: research by The Guardian in America found that millennials are actually more likely than any other generation to say that having a financial advisor they trust is important to their financial confidence. Millennials have a different attitude to both work and money than previous generations, with Deloitte saying that 54% of young people hoped to start their own business, and 27% are already self-employed.
To these customers, keeping a close eye on money comes naturally. As does using technology.
Contrary to the idea that millennials are feckless oafs who are more interested in smashed avocado than returns on their investments, The Guardian report found that millennials were more willing to learn about money than any previous generation, with 75% of respondents saying they would be willing to attend an in-person financial seminar.
Ready access to information via technological tools is also giving millennials a new level of financial literacy, the EY report found.
The report found that, among those with advanced digital skills, 76% also had advanced financial literacy.
Debunking the myths that surround millennials, ready access to information via smartphones isn’t making young people lazy, it’s making them well-informed customers.
Tools such as Focus Wealth can facilitate and forecast long-term views of how investments should be made, and how they will turn out.
The EY report concluded, ‘As customers are becoming more digitally enabled and gaining confidence, they are becoming more financially literate. There are new opportunities to use digital technologies to engage and support [these customers’] financial planning activities.’