Millennials represent roughly half of the current client base. They are future traders and they are mobile. How to approach them? How to retain? The more brokerages know, the better prepared they will be to onboard these traders and retain them over the years. We hope this infographic will make it clear for brokers’ technology departments to see what they need to focus on when working with this generation. So, where to start?
The best way to be prepared for millennial investors is to understand their habits. With this infographic, based on Devexperts’ report: Redefining Brokerages for the Coming Generations, brokerages can quickly learn the ins-and-outs of the financial and technological habits of this generation of investors.
Millennials are a generation of smartphone users, with 92% owning cellphones and 28% as smartphone-only internet users. But it isn’t just mobile technology that interests this generation. They are 2.5x more likely to be early adopters, with 43.5% of current traders claiming to be comfortable with new technology. However, they aren’t easily wooed. This 43.5% also said they expect these technologies to be personalized, user-friendly, and hassle-free. One fact which is obvious from the first sight – they demand convenient software. They value thought-out UIs and UX, they feel that a business should put a focus on the customer’s expectations.
One of the latest trading technologies to be adopted by millennials is roboadvisors, with 40% of millennials claiming to engage with chatbots daily. However, this is still not enough as 80% of millennial traders want a digital assistant, or a roboadvisor relevant to the financial industry, that can still provide access to a person if needed.
Not only will millennials be tech-focused traders of the future, but they will be investing the most considerable inheritance of any generation. Twenty trillion dollars’ worth, as it turns out, will be the amount of wealth millennials will control by 2030. This is a lot of money that 34% of millennials don’t know what to do with, citing a lack of knowledge as their reason for not investing. What they lack in knowledge of the market, they make up for in their awareness of world issues as they are twice as likely to sell an investment position due to corporate behavior that is perceived to be unsustainable.
It isn’t only traditional finance that interests millennials. 27% of these investors prefer Bitcoin over traditional stocks, and another 31% are interested in owning cryptocurrency. The Greyscale Bitcoin Trust is ranked 5th in the list of millennial shareholdings, surpassing both Disney and Netflix. And, as of October 2018, 25% of all millennials own cryptocurrency.
Millennials account for 27% of the global population. This is too large a group of investors to be ignored. They want financial freedom, and they aren’t afraid of using the latest and greatest technologies to get there.