How will the investment sector stay relevant in the face of Generation Now?
A 2017 Deloitte survey revealed that “millennials are more likely to utilize technology as a purchased vehicle than older generations”, illustrating the opportunity of every industry to break into the millennial demographic via mobile technology. As of 2018, 92% of millennials owned smartphones, compared to 85% for Gen X and 67% of baby boomers.
The venture promises to disrupt the status quo in the mobile investment app field, currently dominated by roundup micro-investing tools such as Raiz and Digit. These apps present themselves as chic and minimalistic, prompting some commentators to describe them as “gamified”. Moreover, high levels of automation in these apps underscore an assumption that younger investors want to avoid the finer details of stock trading.
However, Accenture data shows that more than 66% of millennial investors want self-directed capabilities in investment trading portals, while 67% want tech-generated recommendations compared to 30% of Gen X and baby boomers.
Goldman Sachs research describes millennials as:
the first generation of digital natives. Their affinity for technology helps shape how they shop. They are used to instant access to price comparisons, product information and peer reviews.
Some investment platforms have twigged to the new environment
Recently, stock analysis Fintech HALO Technologies has announced its intentions to provide access to on-the-move investors with the development of HALO Lite, a forthcoming app bringing the capabilities of HALO’s web program to mobile phones.
The announcement comes as good news to a wide range of investors. Experienced traders are set to benefit from immediate access to the industry-standard trading platform, while younger demographics are now empowered to upgrade from micro-investment apps currently dominating mobile platforms. HALO Lite offers these investors the fingertip ability to make financial decisions, backed by clearly presented, industry-leading market research algorithms.
At its core, HALO provides regular investors with the same tools accessed by professional fund managers, empowering them with unparalleled portfolio analysis and research-backed advice for picking new stocks.
HALO Lite will act as a companion app to the full version, while it is also available as a standalone investment tool for new clients.
The app, currently in development, also promises to reach new demographics, particularly younger investors typically hesitant to enter the market via traditional routes.
HALO’s quantitative and event-analysis research algorithms provide leading stock and portfolio recommendations, putting professional-grade capabilities into the hands of self-directed investors. HALO also provides an in-house trading platform, unlike many existing apps, while lowering traditional barriers to market entry such as lack of information and high upfront costs.
Meanwhile, new research shows that millennials are overwhelmingly likely to invest in ethical principles as much as they are on financial advice.
A survey lead by Nuveen has concluded that upwards of 90% of investing millennials care more about their impact on society than their financial success. The trend towards ethical investing, which does not come as a surprise for many, is a key difference point for fund managers and investment tools seeking to attract younger demographics.
HALO offers industry-leading transparency and capabilities that micro-investing apps cannot provide, despite their appearances as ethically friendly.
Chief Executive of Responsible Investment Association Australasia Simon O’Connor notes that
“Millennials are twice as likely to purchase a sustainable brand and three times as likely to work at a sustainably-minded company.”
HALO Lite isn’t just good news for young adults, however. Bringing high-level quantitative, macro and event analysis to fingertips isn’t simply a matter of convenience in the stock-trading industry.
For the first time, allowing investors to make real-time decisions based on the best portfolio and stock analysis available is a cutting-edge development, and underlines that HALO, and HALO Lite, are must-haves for self-directed investors and fund managers.
This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)
(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).
This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.
ASR has no position in any of the stocks mentioned.