A New Breed
Why millennials are using new financial technology over existing models to secure their futures.
As generational transition occurs in many developed economies, the preferred investment options of millennials have also transitioned. No longer is 4% growth of a client’s initial investment considered as a positive annual Return on Investment (ROI). Historically low interest rates have additionally resulted in methods such as institutional term deposits becoming increasingly unattractive to millennials. The reasons for this are numerous and will be unpacked later on in this piece. While their parents may have accepted the high-fee, low dividend models that traditional institutions have previously offered, the emergence of tailored investment options such as Exchange Traded Funds (ETFs) and micro-investing platforms have led to increased performance expectations from millennials, who in turn want to see their capital grown aggressively as they see emerging markets like the cryptocurrency market consistently achieve 100% returns in much shorter timeframes.
While the prospect of these type of returns are incredibly enticing to millennials, the downside risk of security intrusions, fraudulent ICOs and investment security cannot be ignored. In traditional markets, new financial technology companies such as Raiz recognise and satisfy these new client needs but traditional markets are often slow to move, while still charging the same fees as in other markets. Automata, another robo-advisory platform, is a clear improvement on this as it takes the revolutionary robo-advisor technology and applies it to the highly liquid, highly volatile cryptocurrency market. The result is a secure on-boarding platform for clients that does not discriminate upon their net worth, nor their individual investment needs. A true democratisation of cryptocurrency investing. Automata has the added advantage of being the only established robo-advisor in the cryptocurrency market, giving it a tremendous chance to promote its platform to millennials without the threat of significant competition. Additionally millennials can further diversify their portfolios by taking part in Automata’s upcoming token sale. More info on the token sale can be found here: https://www.automata.live/
Lifestyle factors have also come to significantly influence an individual’s investment decisions. Millennials are recognised by their prioritisation of travel, health and leisure time compared to their older counterparts and this is reflected in their investment tendencies. No longer do they have the time to track their portfolios hourly, nor make constant trades in reaction to market changes. Their trust in industry experts to manage their capital on their behalf is a great deal higher than, the baby boomer generation for example. This has to be seen as a contributing factor in the rapid growth of financial platforms that can seamlessly operate within people’s lives without large financial or time commitments. Investment platforms such as Automata empower individuals to continue to prioritise their life how they want to, while dually keeping an eye on their future financial security.
The importance of this freedom cannot be overstated to millennials, who are joining investment platforms in greater numbers, and a lot earlier than their parents. This responsible approach to their future financial health should be applauded, and elite platforms like Automata stand ready to empower millennials to achieve their personal financial goals. Your future is now.
