Millennials are so comfortable with technology that they will use their phone for all kinds of transactions. They do not want to waste time making appointments to go and meet someone face to face. If they want something, it has to happen now. So they reach for their phone or tablet, key in what they want and get the deed done. They will book holidays, order a takeaway and conduct financial transactions online. Now a new breed of financial technology companies, known as fintech, is tapping into their needs by replacing financial advisers with robo-advisors which use logic, statistics and algorithms to decide where clients’ money should be invested.
Millennials Have a Social Conscience
Millennials want diversity and transparency in financial services. They are also prepared to shop around to get what they want. Furthermore, they want fintech to support social causes which are important to them, such as ridding the world of poverty, having equality and environmental issues. It is big business, with billions of pounds being invested in this fast-growing sector.
Tapping into Technology
These Millennials – typically born between 1982 and 2004 – are the future, and so it is important to cater to their needs. They trust technology and embrace innovation, so financial advisers need to as well. The advantage of conducting business online and with robo-advisors is that it is faster and cheaper. There’s no need to travel to a bank or office to sit down and talk with an adviser. Just tap an app, put in what you wish to invest and advice is given. Because it is quick and cheap, fintech companies can afford to allow clients to invest smaller amounts with lower fees too.
Financial advisers can also tap in to the fintech world so they have the information they need at their fingertips at all times. They can invest in software to cut down costs, be more efficient, manage risks and build a better business. The market is constantly changing, so a web-based business management system is essential for advisers to keep on top of their game. This software developed by specialists such as https://www.intelliflo.com/ can take care of back office systems for IFAs.
By embracing technology, advisers have their client management, documents, finances, portfolios and all other relevant information in one place which is readily available 24/7.