Millennials Hesitant to Go All-in on Digital Advice

Millennials Hesitant to Go All-in on Digital Advice

Editor: Johnathan Meyers | Tactical Investor

Millennials Hesitant to Go All-in on Digital Advice

Updated Dec 2022

Let’s quickly examine the week’s featured article before delving into the current story.

A significant majority of individuals, approximately 90%, now find themselves part of the “polarized equation.” Consequently, manipulating the crowd has become remarkably easy. One can effortlessly deceive or exploit them by presenting a false narrative that stirs their emotions and makes their blood boil. This tactic involves misdirection, diverting their attention to irrelevant matters while evoking strong emotional responses. Once caught in this loop, they cannot see or focus on anything else.

While misdirection is a devious strategy, it is undeniably compelling. It was utilized during Brexit and is increasingly being employed in elections worldwide, particularly in Europe. Although the Alt-right trend experienced a temporary slowdown in Europe, those who believed it had ended made a grave error. Misdirection remains a potent force, shaping upcoming trends for 2020 and beyond.

A recent report by MyPrivateBanking found that wealthy millennials exhibit some intriguing contradictions in their digital attitudes towards financial matters, which wealth managers must consider when targeting younger clients.

On the one hand, millennials prioritize mobile usage, embrace texting and chat platforms, and express interest in robo-advisors. On the other hand, they demonstrate conservative attitudes and behaviours concerning digital banking and wealth management.

MyPrivateBanking conducted a panel survey across five key markets: the U.S., the U.K., France, Germany, and Switzerland. The survey addressed the digital needs and preferences of 1,000 millennials with a minimum household income of $200,000.

The survey encompassed three wealth segments: mass affluent, affluent, and high net worth. In the U.S., these segments were defined by investable assets: up to $500,000, $500,000 to $1 million, and over $1 million, respectively.

Survey respondents expressed a desire for innovative communication channels. According to the report, 73% of respondents and 78% of Americans utilized mobile apps provided by their wealth managers. However, many expressed dissatisfaction with these apps, particularly among the high-net-worth segment, with 34% refusing to use banking apps altogether.

Among the necessary factors, payment options received the highest score (3.96), followed by security and encryption standards (3.91). Live chat with banks or financial advisors and gamification received the lowest scores (3.32 and 3.13, respectively).

Interestingly, this preference for innovative communication channels does not necessarily translate into greater acceptance of robotic tools, with 21% stating they do not foresee using such tools, compared to 14% in other countries. ” Full Story

Where do millennials turn for financial advice?

Imagine yourself as an average metropolitan millennial, progressing in your career, approaching the day when you hope to become a homeowner, and contemplating whether to start investing in a pension or an ISA.

At this stage, you might consider seeking the assistance of an independent financial adviser (IFA), but the reality is that they may not be willing to take you on as a client. This is a common experience among young professionals who often lack the substantial funds that would make it worthwhile for the industry.

Arguably, my generation is in greater need of financial guidance compared to previous generations. We face the looming burden of student debt, a decline in homeownership opportunities, and a rise in self-employment amidst stagnant wages. Full Story


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