Millennials are expected to have $20 trillion in wealth by 2030, according to a July 2018 CB Insights study. Marketing investment options and robo-advisors to this mobile-centric group will require a specific strategy.
Currently, millennials’ combined financial assets come up to $4.5 trillion in wealth. Factoring in for organic savings growth, market “impact,” and wealth transfer or inheritances from older generations, wealth is expected to increase five times over by the year 2030.
According to the Pew Research Center, in the next year millennials will slightly outnumber baby boomers as the largest adult generation in the U.S. In 2019, there will be 73 million millennials and 72 million baby boomers respectively.
By these numbers alone it makes sense to market to and cater to millennials needs, as their assets and buying power grows.
For this generation, mobile is the medium.
Time spent with digital media has more than doubled since 2008 when millennials spent around 2.7 hours on digital channels, with about 20 minutes of this on mobile. In 2017 time spent with digital media has increased to 6 hours daily, with nearly three and a half hours of this on mobile.
Millennials look for specific things out of a robo-advisor.
The study notes that gamifying financial goals is a way to keep millennials engaged. This means presenting goals, milestones, and account information in a way that promotes participation. Application interfaces tend to do this through infographic and interactive data visualization. A clean UX and UI goes a long way.
The top-rated iOS robo-advisor app among millennials is, relative newcomer Wealthfront, founded in 2011, with a five-star rating. The lowest rated app among this group is legacy brand Charles Schwab, with three and a half stars.
More than any other polled age group millennials would switch brokerage firms for commission-free trading. 45% of millennials said commission free is the “most important” factor when trading ETF’s with a brokerage, compared to 13% of baby boomers.
See the full study here.