It's not Santa Claus. It's dad in a suit.
The P2P lenders, the equity crowdfunders, the fund managers; they're coming for your children. Fresh international research sheds new light on how the younger generation saves, spends and invests.
People we respect are taking the under-30s seriously as investors. It's not just about iPhones and tablets, either. Affluent millennials have different investment habits and that affects the services they are willing to pay for and the strategies firms will have to adopt to win and keep their business.
The Legg Mason Global Investment Survey 2016 interviewed investors in countries, including millennial investors. There are differences between countries, as expected, but most countries highlight differences in generations, too.
The full report can be found at Legg Mason Trending Conversations, but we noted some highlights:
- millenials are conservative investors
- 78 percent polled were more conservative thann a year ago
- their exposure to equities was 9 percentage points lower than investors aged over 40.
it's incredibly important to understand how they think
"We are a much more diverse workforce than you would usually find in the asset management industry and much younger as well. And that is key for us and we're targeting a more tech-savvy customer, most of them millennials,"
"And for us, it's incredibly important to understand how do they think about their investments and what steps do they take to consider where they're going to invest their money - and they are very different from the 50-year-old-plus individuals."
Justin Urquhart Stewart, who spoke alongside Goncalo at Another Crowd's London seminar, highlights the link between technology and improved customer service:
"The application of (technology) to people's personal finance and to the investment management world is going to fundamentally change the way we go about things."
Justin's firm, Seven Investment Management, raised eyebrows recently when it hired the developers of Donkey Kong in order to design systems that are more attractive to younger investors.
Reasons To Be Cheerful
We feel very encouraged by the news that the youth of today are already interested in managing their finances, and that they have an optimistic attitude to the future, and are thinking long term. And we note that people whose opinions we respect, like Goncalo de Vasconcelos and Justin Urquhart-Stewart, are adjusting their companies' business models to attract them.
The human dimension is coming back to investment.