Capturing a millennial client base is becoming increasingly important in the asset management industry as statistics suggest that the flat white-drinking globe-trotting house plant types among us present an often underestimated source of revenue.
Investment products that are targeting millennials include technology stocks and lifestyle brands, or sometimes have an ethical or eco element to their underlying investments. But what's also proving important is that investment managers have strong digital or online offerings. Apps and online platforms are a useful gateway for these tech-savvy investors.
It’s here that user experience is king and as with any technology sourcing, effective service levels and good contract governance mechanisms provide important tools for ensuring that digital expansion stays on track.
Brian Moynihan, Bank of America’s chief executive, claimed last week that the bank’s 16m millennial customers between the ages of 25 and 41, who represent about $200bn in deposits and investments, were attracted by the company’s “digital capabilities”. BlackRock’s chief Larry Fink, meanwhile, noted on his second-quarter earnings call that “millennials are much more adept at using technology and we need to be at the forefront of helping them”.