Financial Advisers Challenged by Tech-savvy Millennials

The way we conduct our day to day lives is changing. Socialising, personal organisation, banking, shopping and even financial planning can now be dealt with through smartphone apps. It’s a way of life being embraced by 18 – 35 year olds all over the globe, and it’s presenting a challenge to the traditional face-to-face services like financial advice.

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Indeed, the Millenials are quick to adopt new technologies as they conduct their lives on the go, with nearly half doing their banking via smartphone apps, and a growing number of them using their smartphones to keep tabs on their investments. Companies like Google now provide research and advice on how businesses can make sure their apps are a success.

Financial Adviser Apps

We’ve seen high profile retailers collapse as they’ve failed to compete with online shopping. Businesses across all industries are taking note. Already, independent financial advisers are tapping into the changing demand for financial advice via mobile apps, providing a digital solution in addition to their existing, face to face services.

Companies that develop and provide back office systems for IFAs, like, are rising to the challenge by developing mobile apps that can not only provide automated advice but additionally open a channel of communication between IFAs and their clients, bridging the gap between traditional services and today’s digitally multitasking culture.

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The Future

Research conducted by investment managers Legg Mason has showed that while nearly half of Millenials embrace the idea of planning their finances via a mobile app, they represent just 16% of all those surveyed in the UK when participants from Generation X and the Baby Boomers are taken into account. However, while the majority still prefer to receive their financial advice in a more traditional way, the demand for digital advice is clearly on the increase.

For now, it seems, technology that features the hybrid solution between automation and direct communication with IFAs seems to be the most popular choice, according to Legg Mason. This may continue to be so as the Millenial generation begins to age. But who knows what demands Generation Z or the post Millenial generation will bring. With birth dates from around 2000 to present, it’s too early to define their characteristics as they’re yet to come of age. One thing’s for certain – they’ll continue to challenge how investment advice is delivered.