Digital Impact - is your business already Millennial-proof?
Technology is driving change in industries all over the world, including the asset and wealth management industry. The rise of the Millennials as an investor group is a key factor for change in the financial services industry. The Millennials or Generation Y, born between 1980 and 2000 and heirs to future wealth are expected to hold total assets of up to $24,000 billion by the end of 2020 (Source: nzz.ch). They are also so-called “digital natives” and use digital technologies like no other generation before as they have learned to handle the World Wide Web, Social Media and eCommerce from an early age. This presents a significant challenge for the wealth management industry whose average age does not match this generation. Arguably, whilst progress is being made, the current range of products and services in the asset and wealth management industry, and the ways in which people access those, is still mainly focussed on older generations.
Manage (digital) expectations of Millennials as an investor group
Digital natives expect digital tools for everything they do: from ordering food to managing their investments. At the same time, they also face several megatrends like climate change and scarcity of resources, which are influencing their behaviour like never before. The awareness of the need to solve these problems also determines their attitude towards financial investments and gives them a different perspective compared to previous generations. Fund Managers cannot afford to ignore these social drivers and should bear them in mind during product design.
Reinvent your business – with technology at the centre
To win over and accommodate Millennials, wealth management firms and fund managers need to run to keep up in order to adapt not only their product ranges and advisory approaches, but also their marketing methods and business models – while staying at the forefront of technology.
In a survey taken by Broadridge/Roubini, more than three-quarters of the Millennials surveyed said it will be important for financial service providers to stay at the forefront of technology.
This has already been recognised by some asset managers and Allianz Global Investors, T. Rowe Price and Robeco have recently been nominated for awards for their websites.
How FE fundinfo can help
At FE fundinfo, we know that technology has the potential to not only greatly improve day-to-day processes and efficiencies in the fund industry, but also to help grow your business. It is our mission to better connect the different players in the fund industry and to help automate processes and enhance efficiencies via accurate data and leading technology.
With our state of the art Digital Solutions we help Fund Managers and Fund Distributors to build innovative websites and fund centres in their own look & feel that attract investors (example).
To find out more about how we might be able to help your business enhance your online client experience, contact us to chat to a specialist.