Despite their inexperience, millenials have learned to become financially conservative. After the devastating Lehman Brothers collapse that caused the stock market collapse and massive unemployment, millenials are now more careful when taking risks. This is why they turn to modern trends like Robo-Advisors.
Many members of the older generation undermine millenials because they seem disconnected from their environment because they are drawn to their smartphones or computers. However, Ivan Dimitrijevic, an analyst from the Realty Times, said that "reality is much different."
"Our devices allow us to stay connected with each other at all times, while processing a huge amount of information with ease. This is something that shows that technology-enabled real estate financial advice firms like Robo-Advisors have a bright future ahead of them," he asserted.
Most millenials are just starting up their lives. With a lower income and lesser savings, they are in a tight spot financially-speaking. As much as possible, they want to avoid the additional costs that come with traditional financing such as transaction fees and account minimums. Because their investments are lower, the traditional financial industry cannot offer any good solutions for them, besides telling them to come back only if they have more money.
Likewise, traditional financial advisors have little time to spare. It is difficult for them to a scale business models to a couple of clients who have lesser assets. This is why millenials opt for a technology-based solution that, for them, is accessible, customizable and personal.
Robo-Advisor companies are also more empathetic to millenials. Although the trend is based on technology, the messaging, vision and branding are still all human.
Robo-Advisors, although they are a new trend in the real estate industry, are easy to work with becasue they still adhere to some traditional methods utilized by the financial advice industry. Robo-Advisors have familiar features such as efficient exchange trade funds, risk tolerance and the modern portfolio theory.