By Brook Ptacek, IAC Student Intern
For a generation that grew up in the tech age, one myth that FINRA and CFA Institute’s study on millennial investors debunked is that millennials would likely be more attracted to robo-advisers. However, that could not be farther from the truth.
The results of the study show that in fact greater than one third of the millennials surveyed had never heard of robo-advisers. What is more interesting, though, is that the millennials surveyed did not show any interest in robo-advisers. Rather, millennials seem to gravitate towards something a little more personal.
The study showed that even after explaining to millennials what robo-advising was and giving examples, such as Betterment, Wealthfront, and Blooom, millennials still wanted no part in it. According to the study, only 16% of the millennials surveyed marked that they were very or extremely interested in robo-advisers. Instead, the “Me, Me, Me Generation” seems to want to talk to someone face to face, not electronically.
This is interesting for a generation that is often cited for being full of social media endorsing, selfie-loving, narcissists. And in a generation where you don’t even need to go into a store to buy milk, its odd that millennials would want a real person they can talk to face-to-face about their finances. But as my next blog post explores, this is likely easily explainable: millennials don’t want you to bring them a fish, they want you to teach them to fish.