Millennials & Investing: A Whitepaper by Facebook

Facebook recently conducted research about the behavioral investing trends of affluent Millennials (ages 21-34) earning $75,000 or more. The study provides insights into the behaviors of these Millennials in comparison to Gen Xers and Boomers (ages 35-65). By using third-party data, conversation analysis and survey data, Facebook observed that Millennials tend to be more cautious and remarkably responsible. Among other statistics, the study found that:

  • 33% of Millennials say they are happy with the way they are currently saving or investing
  • 53% say they have no one to turn to for financial guidance
  • 36% talk to their parents about money
  • 8% trust financial institutions

Millennials are 1.3 times more likely than Gen Xers or Boomers to turn to a financial advisor. They are often collaborative by nature and value the relationship between themselves and an advisor. About 60% expressed the desire for their bank or financial institution to be a partner or friend.

The number one way that their advisor remains a valued partner is by rewarding their loyalty. Millennials ultimately expect three things from financial institutions: they want to feel rewarded for their loyalty (30%), they want things to be made easier and more convenient (29%), and they want honesty (28%).

Advisors looking to increase their involvement with Millennials should consider the following suggestions provided by Facebook:

  1. Offer solutions that address pressing needs and have low barriers. Millennials are focused on near-term goals like paying off debt.
  2. Re-align credit. Make it a strategic tool that gives them financial responsibility and is goal-oriented.
  3. Help develop a financial plan. By helping Millennials develop a financial plan will provide them with a needed service and will also make you a valuable asset by opening their eyes to new financial opportunities.
  4. Be sure to look both within and beyond the category for inspiration. As a starting point, aim to compete with the clear value propositions, flexibility, hybrid solutions, personalization and clean user experience of the best robo advisors, financial apps and tools.
  5. Make them feel understood and rewarded for their loyalty. Financial institutions could demonstrate their empathy and loyalty by waiving fees in certain circumstances.
  6. Demonstrate understanding through personalized communication. By listening then prescribing.
  7. Educate empathetically. Elevate conversations by remaining present where people are talking about how money matters.
  8. Solve holistically. The solutions you offer should take into account and help resolve their multiple priorities.
  9. Connect visually. While money matters are often discussed through text, the conversation is also increasingly visual.
  10. Put mobile at the center of your multichannel ecosystem. Maintain mobile loyalty and make it multichannel and personal.

By 2025, Millennials will make up as much as 75% of the workforce. Understanding this generation’s values can offer an insight into how to attract and retain millennials as clients and become their advisor of choice. Click here to read the full whitepaper from Facebook.


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