There are said to be almost nine million people between the ages of 18 and 34 in Canada, the so-called millennials, and they will rule the economic roost in the coming years as they earn more and invest more.
Full-service advisors have an opportunity to benefit from demographic tidal wave of change but only if they’re able to provide younger investors with the latest in technology, something robo-advisors were specifically created for.
“Millennials, as a generation, differ from other generations in that they are a lot more comfortable with technology,” WealthBar CEO Tea Nicola told the Vancouver Sun recently, “and that is kind of reflected in everything they do.”
As a rule millennials like to do their own research before making a decision about hiring an investment advisor; if you’re not utilizing technology and social media to spread your marketing message you’re not going to make any inroads recruiting younger clients. It’s that simple.
“People are so busy on a day-to-day basis, having that online access is essential,” said Jillian Bryan, a portfolio manager and vice-president with TD Wealth in Vancouver. “This business is about relationships and it’s hard to develop a long, very strong relationship via email.”
In other words the advisor most able to reach the millennial demographic will provide high touch, high tech, service.
“There will be a subset of millennials who will go to robo-advisers,” Bryan said. “(But) long term, TD has cone some (research) and found that large discount accounts eventually go to full-service advisers. As you get older, you need more help as you have more money in the market.”
And it all starts with technology.
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