Nearly every feature of the ‘robo-advisor’ is attractive to Millennials.
- Personalized – They require customization to create personalization.
- Automated – They’ve got too much going on in their life to dedicate a lot of time.
- Low-Cost – For most, they are in the early stages of their career and not making the big bucks. Having really low fees and low minimums is critical.
- Investment Advice – They need it. Even for the DIY generation.
- Web/Mobile-Based – That’s their preference to do business with you.
- Low Barrier to Entry – Shunned by the investment professionals looking for 250K in investible assets, this allows them to get involved earlier.
More and more new financial advisory services are of the robo form. And considering Millennials trust in algorithms for everything from matchmaking to mealtime, we’re likely to see this trend continue.