Wealth Managers: 3 Behavioral Tenets to tackle the tech-savvy Millennials

CMOs, and finance product developers have been surveying the financial habits of millennials with passionate alacrity. Merrill Lynch, for example, discovered that the millennials want to remain in the driver seat when it comes to investments http://bit.ly/1zYRdAb Goldman Sachs found it crucial that the millennials are the first generation of digital natives “used to instant access to price comparisons, product information and peer reviews.”  http://on.mash.to/1Y3kZx4

 As a behavioral financial enthusiast I would like to give 

three tips for those seeking to cultivate the millennial wallet.        

Some Brands Millennials Love

  Navigate thrift: Millennials’ conservative Mental accounting: Scarred by  subprime crisis, the Euro crisis and student debt, millennials are trust  deficient and conservative mental accountants. Their meagre economic  assets are clearly invested in their lifestyle, and belief in remaining debt  free. To make them part from their cash into a financial product, the  advisor has to make sure that he is addressing that internal account  which is for investing (and not necessarily for any particular class of  asset). So platforms with multiple assets count.   

   Make them explore: (representative herustics, confirmation bias):  Millennials have grown up steeped in technology. Advisors and  marketeers need to counter this salience, this innate affinity to  technology by making non technology assets in portfolios more cool. Pointing out the green value of an asset or  its intrinsic social value will make the portfolio more attractive. 

 Exploit the Herding: Millennials are sociable, (social) community oriented and as a group, scarred by their past.  So they are “underreacting” to  retirement and investment. As in consumer marketing, devise platforms where  social peers can compete and connect about retirement and investment and learn about simple facts like  “equities have had a bull run for last five years”. A peer group “Urgency” about investment and retirement will  create a positive dynamic.




Hi. My name is Ritu Gurha Lisso,  a business journalist plus content writer plus social marketing pro all folded into one. I am a polyglot and have lived and worked in Asia, Europe and now USA. I have managed to meander from art reviews to bonds market analysis and behavior finance. In my current avatar as a business communications professional and a behavioural finance enthusiast, i am passionate about creating social content and social strategy. Please feel free to reach out and connect with me @ritugurha.