This is another in the guest posts I've had the last couple of weeks — this one from Luis Aureliano. It's a look at the impact millennials are having on our landscape right now. Feel free to share your thoughts in the comments. I'm looking forward to getting back into the swing of things very soon, as I recover from my two-month journey and as my son goes back to school. I've got a lot to write about, and I need to get to it!
The generation known as millennials, those born between 1980 and 2000, are often stereotyped as entitled, constantly distracted by their smartphones, and hopping from job to job.
This group is also one that companies are increasingly paying attention to and trying to figure out how to tap into its immense market potential. The financial and banking sector is no exception. This industry is among those trying to cater better to millennials.? From 2011 to 2014, more than $1 billion was invested into financial-services startups targeting young investors, according to CB Insights.
When it comes to investing or trading, millennials differ substantially from older generations, and their habits are increasingly driving changes at banks, trading platform and other financial institutions.
Most of these changes stem from technology, including the growth of mobile devices, online peer reviews, and social networks. Alongside the technological changes, millennials? attitudes and approach to money management are also unique. There is a large emphasis on being able to feel like choices are in their control and information and opportunities are easily accessible.
While many studies indicate that millennials save and invest less than older generations, the way they manage money is often reflective of the large role of technology in their lives.? They are more likely to use mobile phone apps rather than in-person banking services, and are open to automated services, like robo-advisers, when it comes to investing funds.
In addition to on-demand, mobile, and automated services, millennials are also driving trends like social trading, platforms that allow users to watch and even copy other investors? moves.
The social or copy trading platforms not only make global markets easily accessible on the screens of smartphones, but the social-media aspect, and relying on the so-called wisdom of the crowd is also appealing to this generation.
A recent study?indicates that millennials were three times as likely as other age groups to rely on information garnered on social media for making purchasing decisions.
In sum, technology is rapidly changing the financial world, and much of the direction this trend takes will be determined by the habits and preferences of millennials, who currently make up the largest generation, by population figures, in the United States.
What do you think about new investing trends? What new products or services do you take advantage of??