 |  |  |
Industry News Under 50 investors offer lucrative opportunity to financial services firms 2011-03-10 When the public hears the term "investor," they often envision an individual at least 50-years-old with a lifetime of business experience. However, as new business ventures pop up thanks in great part to the digital revolution, the average age of investors is dropping and the under-50 crowd is attracting more attention from major financial institutions. As a result, FIs hoping to attract these individuals and boost customer retention rates will have to get creative and embrace the latest technologies. In fact, a recent survey cited by Bank Technology News revealed that the tech-savvy market segment of those less than 50 years of age could generate approximately $18.6 billion in revenue for financial services firms in North America, but only if technology was properly leveraged to connect individuals with their providers. Compared to their older counterparts, under-50 investors are looking for faster and more convenient communications options and an increased level of interaction with their advisors beyond in-person meetings, phone calls and emails, the source notes. However, their financial advisors are no longer the only individuals they want involved in their financial and investing activities. This age group wants to incorporate accountants and lawyers in their investment decisions as reflected by their desire to leverage communication technologies that allow for multiple parties to be present at a meeting. Sixty-three percent of respondents said they are interested in using two-way high-definition video rooms, while an additional 55 percent of clients indicated that they have already accessed social networking websites for investment advice. Furthermore, this demographic not only reads financial blogs but actively contributes to them. The survey additionally found that 34 percent of respondents indicated that they have contributed to an investment blog or message board and 66 percent of under-50 investors are interested in becoming members of online financial communities to "discuss strategies, ideas and stock picks with other investors," BTN writes. "Financial services firms that move quickly to deploy these technologies to engage key investors have the opportunity to win the lion's share of the Wealthy Under-50 segment. Late movers could find themselves 'locked out,' attempting to win wealthy customers who grow less likely to switch firms as they age," explains the source. Over the next 12 months, FIs are planning to leverage technology more in connecting with basic clients as well. A recent survey from Aberdeen Group found that 62 percent plan to implement a mobile platform during this period.
Generation X remains skittish toward investments
|
 |
 |
 |
 |
 |
 |
Contact Us | FAQ | Site Map | PNT Privacy Pledge | © 2008 PNT Marketing Services