A recent study of Millennials' engagement with the finance industry has shed new light on shortcomings in the financial advice sector's ability to connect with young people.
The Investing in Millennials survey, conducted by Zaptitude, found that while young people are very willing to engage with the financial services sector, misconceptions about the industry – as well as barriers in communication – are preventing involvement.
Zaptitude co-founder Peita Diamantidis said regardless of the research conducted on engaging with Millennials, the financial services sector keeps getting it wrong.
“It has become increasingly clear that the financial services industry is developing digital solutions for this age group when in fact they seem to be craving more human connections from us,” she said
“In addition, pretty much everything we come up with, whether it is banking products or financial advice, is tailored to an older generation's definition of success – and therefore focused on buying property and retirement [issues],” Ms Diamintidas said.
“Some of the questions that frequently arise in the research around young people and finance are questions that don’t really relate to them. When you ask a 22-year-old about super, if they could tick the box labelled 'I don't care', they would – they're not going to get that money for 50 years
"As an industry, we are leading with the least relevant and least interesting things for Millennials. The Investing in Millennials survey will provide an insight into how we should be targeting the Millennial market and what exciting things they want to do and see from the industry and who they want to hear from.”
Ms Diamantidis said listening and empathising with the Millennial age group would bring key benefits to the industry and contribute significantly to its development.
“One respondent suggested they would like to have a savings account in multiple currencies so they can save for a holiday over a period of time and it can be in the currencies they need," she said. "The team and I keep looking at the answers, going ‘I can't believe this doesn't exist already’.
“The other thing that was really interesting was the type of person young people want to hear from when/if they receive financial advice. The one preference that almost all respondents picked was 'a sense of humour'.
“If you think about most people who talk about finance, humour would not be one of their most significant characteristics. There are really important lessons to be learnt here,” Ms Diamantidis said.
The final results of the Investing In Millennials survey will be released later this month.
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