A new report from LinkedIn, the 2015 United States
Affluent Millennial Research Study released on Thursday, examines what
affluent millennials are looking for in financial services institutions. The
report, which focuses on data gathered in April 2015 from a subset of 1,507
millennial and Gen X individuals from across the United States, defines an
“affluent millennial” as someone born between the years 1981 and 1997 with at
least $100,000 in investable assets, excluding real estate.
What’s noteworthy is that 87% of the affluent millennials
consider financial advisors important – despite that half of affluent
millennials consider themselves “soloists” when making financial decisions. As
a soloist, they perform their own research, make their own decisions and
execute their own trades. In fact, 37% of affluent millennials in the study
called financial advisors a “must-have”; compared to 27% of affluent Gen Xers. The
report establishes five ways that advisors can build a long-term relationship
with affluent millennials.
1. Utilize social
networks to provide personalized content
Affluent millennials want a financial services provider with
a strong social media presence. The study found that affluent millennials, more
than any other generation, are turning to their social networks for guidance
and advice on their finances. In fact, 39% of the affluent millennials surveyed
(compared to 24% of affluent Gen Xers) consider social networks a “must-have.”
While previous generations may have seen financial matters
as private and would never consider discussing them with their peers, nine in
10 Affluent Millennials use social networks to seek opinions and comments
regarding financial markets and events.
The affluent millennial will look at what content is
available from the financial services provider via social networks, and they’ll
also look to see if it is possible to communicate with the company through
social media.
There’s a big opportunity for financial firms to leverage
the social networks affluent millennials are scouring for relevant content to
deliver the personally relevant content these millennials seek.
2. Provide expert
advice to establish trust and enable independence
According to the report, affluent millennials are looking
for financial advisors that act more as consultants than as account managers.
3. Establish loyalty
early
The study found that half of the affluent millennials
surveyed say they are “very loyal” and plan to do more business with their
chosen financial services providers. In fact, when looking for a potential
financial services provider, affluent millennials will look at organizations
they have an existing or previous relationship with first – as well as
organizations their family members use or recommend.
4. Build
relationships with emerging affluent millennials
The study found that only one in four emerging affluent
millennials has a nonretirement brokerage account. An emerging affluent
millennial is considered a millennial who has investable assets of $25,000 to
$100,000.
5. Retirement
planning
While the majority of affluent millennials have retirement
accounts, the study found that one in three still does not. It’s important for
financial advisors to establish relationships with affluent millennials now and
become a trusted advisor to help them cast a vision to execute a plan for their
retirement.
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