New Zealand millennials are a promiscuous bunch, relying on a growing number of different types of providers for their investment needs. Retaining this segment is critical as competition for wallet share is on the rise.

by GlobalData Financial Services Consumer Survey 2022 found that baby boomers use an average of 1.4 types of providers. Among the millennial segment, this proportion jumps to 2.1. This poses a crucial challenge to traditional investment providers. The same survey also shows that only 25% of millennials would prefer to invest through their bank (whether through an advisor or a platform), compared to 36% of baby boomers.

Indeed, only 17% of baby boomers would look beyond traditional banks and building societies or financial intermediaries when opening up new investments. In contrast, 60% of millennials favor non-traditional players. This is increasingly important as the rate of investment among New Zealand millennials has risen from 35% in 2018 to 46% in 2022. This age group increasingly dominates the investment market .

To avoid losing young investors to new entrants, New Zealand incumbents will have to work on their brand image and their offers in order to retain them. The most important attribute millennials look for in a financial services provider is an easy-to-use digital banking platform. 43% of New Zealand millennials like this, according to GlobalData’s 2022 Financial Services Consumer Survey, meaning it’s the biggest change providers can make. No matter how good your product line is, wealth managers need to consider how easily their DIY or digital clients can invest with them. Growing sums of assets under management are at stake, and investments in technology are key to staying relevant.

Source: Global Data

Related companies