Asset Managers and their distributors need to understand Millennials needs. Here’s how

Ah, Millennials … The « Why » generation, broadly speaking people born after 1980, glued to their headphones, constantly shaking the status quo, aiming for a different path of sense and self accomplishmentsometimes to the despair of their elders.

Millennials are about to become the largest adult population segment. With ages ranging from 18 to 34, they will soon enter their prime earning years (and may inherit in the meantime …).

Therefore, Asset Managers and distributors need to understand Millenials in order to survive.

What should they do ?

The purchase of financial products  needs to materialize key moments of the Millennials’ life

Profitability remains mandatory, but Millennials will not invest against their core values

Reporting should be Digital First and social advisory capabilities are key

  • Almost 90% of Millennials say their phone never leave their side – They expect real time, easily understandable information about their investments, just like they consume every other kind of information.
  • Millennials constantly consult peers and media prior to acting on advisory recommendation. According to Market Strategies International, they are three times more likely to refer to social media networks than older generations when making purchase decisions: manage your advisers like an online community and trigger product pushes linked to client’s peers interests.

Millennials are “digital natives” but they value interpersonal interactions

Bottom line, Millennials might sometimes seem strange, but their desires are not: they want more sense, to use the tools they were born with, and favor inter-personal communication.

Born in a world of perpetual change and uncertainty, they need transparency to feel reconciled with the financial institutions of the post 2007-2008 era. Keeping that in mind will guarantee a nearly smooth transition from the old way to their needs.

Do not hesitate to liaise with us, should you want to talk about Asset Management’s present and future challenges.