Attracting Gen Z and Millennials to Asset Management is quite the concern for fintechs in Nigeria and across the borders. Gen Z or generation Z are rich folks with an unprecedented number of zeros in their accounts, with a lot more having assets scattered across both traditional and digital platforms. While baby boomers and the millennials may currently possess wealth, Millennials were poorer at this stage in their lives. So were baby-boomers. This would mean that, the GenZ may categorically possess the numbers you’re looking for.
While Gen Z is still in its early stages of wealth accumulation, their entrepreneurial spirit, presence in the gig economy, and involvement in high-yield industries like tech and content creation give them access to disposable income. Gen Z’s income is expected to reach $33 trillion by 2030, surpassing that of Millennials. Millennials, on the other hand, have been dubbed the “old rich” among young investors, as they are more likely to have existing wealth but may need extra motivation or education to engage in asset management. In this article, we will look into the different innovative strategies to attract Gen Z and millennials to asset management.
Challenges of Attracting Younger Investors to Asset Management
Despite the potential in attracting Gen Z and Millennials to Asset Management, there are numerous challenges asset managers face concurrently. A survey from Invessed, shows the following :
- 51% report feeling minimal or no control over their financial situations.
- 42% are uncomfortable with basic investing principles
- 47% save or invest too little of their income
- 61% don’t regularly monitor their portfolio
These interconnected issues highlight a significant opportunity for wealth managers to:
Provide educational resources to improve financial literacy, offer tools and guidance to help establish better saving and investing habits and develop engaging platforms that encourage regular portfolio monitoring
This major challenge compels asset managers to adopt marketing as a strategic tool. It involves using content marketing and communication across all outreach platforms, including landing page copy, mobile app interface, website content, brochures, events, social media campaigns, and every touchpoint that requires content tailored to each audience
Appealing to Millennials and Gen Z
While there are connecting dots between the millennials and Gen Z, there are also varieties in expectations, fears and entry points, the chart below provides more insight
Motivation | Gen Z | Millennials |
Expectations | Authenticity, social responsibility | Convenience, personalized services |
Fears | Distrust of institutions, fear of financial loss | Long-term financial stability |
Entry Points | Engaging digital content, influencer marketing | Personalized solutions, digital platforms |
Both generations share a digital-first mindset but have varying motivations. Gen Z is drawn to brands that align with their values, like sustainability and social responsibility. They are more likely to engage with brands through platforms like TikTok and Instagram. Millennials, on the other hand, prefer convenience, efficiency, and tailored offers. These differences highlight the need for targeted, personalized marketing strategies.
How Expectations Differ from Older Generations
In contrast to older generations like Gen X and Baby Boomers, Millennials and Gen Z value digital experiences over traditional financial advice. Older generations trust professional expertise more, while younger investors look to peers, reviews, and online resources when making investment decisions. They prioritise social proof, ease of use, and transparency in their investment tools.
Attracting Genz and millennials to asset management – Case studies
PiggyVest :
PiggyVest is a standout example of how fintechs in Nigeria are winning over young investors. Launched in 2016, PiggyVest offers users an intuitive savings platform with additional investment options, and an opportunity to manage multiple digital asset portfolios. Its primary appeal lies in its gamified experience and ease of use, making it a popular choice among Millennials and Gen Z. According to data, PiggyVest has attracted over 2 million users, with a significant proportion being young Nigerians under 35.
PiggyVest addresses the trust issue by being transparent about fees and returns, and it uses strong social proof to gain credibility. User testimonials and referral programs have played a key role in building its user base.
Cowrywise :
Cowrywise is another fintech company revolutionizing asset management in Nigeria by targeting the younger generation. While piggyvest and cowrywise may be alike, their marketing slightly differs. Cowrywise offers both savings and investment products through a digital platform that simplifies the process of building wealth. A mobile-first approach, user-friendly interface, and automated investment plans appeal directly to Millennials and Gen Z, who prefer straightforward financial products.
According to Cowrywise’s Blog, the company has used influencer marketing and educational resources to connect with younger audiences. By partnering with Nigerian influencers and providing bite-sized financial education on social media and on the app, Cowrywise has positioned itself as a trusted resource for young investors.
Bamboo :
Bamboo allows Nigerians to invest in U.S. stocks and other global financial instruments, offering young Nigerians the opportunity to diversify their portfolios. Bamboo’s unique selling point is its ability to open the door to international markets, a feature that resonates with tech-savvy Gen Z and Millennials who are aware of the value of global assets. Bamboo’s success comes from simplifying cross-border investment, a traditionally complicated process. As reported by Techpoint Africa, Bamboo uses influencer marketing, mobile-first design, and educational content to attract and retain young Nigerian investors.
Risevest :
Risevest also targets younger Nigerians by offering global investment opportunities through real estate, stocks, and fixed-income securities. Its appeal lies in its simplified onboarding process, educational content, and transparency in fees and returns. According to Nairametrics, Risevest has gained traction among Millennials and Gen Z by providing personalized investment plans and easy access to international markets.
By focusing on user experience, and leveraging social proof and customer testimonials, Risevest has been able to attract a significant number of young investors who are eager to explore asset management but need guidance and reassurance.
Effective Strategies to Attract Gen Z and Millennials to asset management
1. Content Approach:
As established earlier, while there are similarities between Gen Z and Millennials, acquiring and retaining their interest in asset management requires understanding the distinct content approaches needed for each group.
Marketing to millennials
If your target audience includes Millennials, it’s essential to align content with their specific interests and values. While they may not be drawn to short content, they are more interested in topics that address long-term investments and the compounding effects over the years. They value experiences over material possessions and seek content that reflects their values, such as sustainability, legacy, and social responsibility. They want their lives to have a positive impact on the world, although individual concerns may vary.
To successfully market to Millennials, consider these strategies:
- Long-form content : Despite having a short attention span, Millennials will engage with longer content if it provides value and is relevant to their interests. As lifelong learners, they appreciate articles that educate them on topics they care about. To maintain engagement, break up the content with images, videos, and infographics.
- Podcasts: Millennials value efficiency and often multitask. They enjoy podcasts because they can listen while commuting, cooking, or doing other tasks. Interviews with industry experts can be especially appealing.
- Videos: Millennials are highly familiar with streaming services and enjoy video content. You don’t have to keep videos short, as long as the content is engaging and relevant. Video marketing can be an effective tool for connecting with this generation. Platforms like facebook and instagram may be a good entry point.
To maximize the impact of your content, promote it on social media that aligns with the generation you’re targeting.
How about getting Gen Z to asset management ?
To market effectively to Gen Z, focus on their interests, which differ from previous generations. Gen Z prioritizes health, wellness, electronics, and technology, with much of their attention on self-improvement and social media.
Key strategies may include:
- Short-form content : Gen Z has a short attention span, so keep content brief and impactful, like on platforms such as TikTok.
- Video marketing : Utilize memes, GIFs, and TikTok-style videos to engage them, especially if tied to their interests like health and wellness.
- Influencer marketing : Gen Z trusts influencers. Partnering with popular social media figures can help boost your conversion rates.
2. Influencer Marketing :
Influencer marketing is an effective way to build trust with both Gen Z and Millennials. By partnering with influencers who align with their values, fintechs can tap into these generations’ social networks and gain credibility. In Nigeria, companies like.
3. Simplified Onboarding:
A mobile-first onboarding experience is crucial for younger generations who expect ease and convenience in everything they do. Fintechs such as PiggyVest have mastered this, offering a simple sign-up process that allows users to start saving and investing within minutes. Incorporating digital KYC processes also ensures a smooth entry point, reducing friction.
4. Educational Resources :
Younger investors crave educational content that is easy to understand and tailored to their level of financial literacy. Providing beginner-friendly investment guides, webinars, and explainer videos helps to demystify asset management and encourage participation. Risevest is an example of a company that offers resources to educate young Nigerians on investing in global assets.
Conclusion
To successfully attract Gen Z and Millennials to asset management, financial institutions must adopt strategies that align with the expectations and behavior of these digitally savvy generation. By leveraging influencer marketing, simplifying the onboarding process, providing educational resources, and building trust through social proof, asset managers and fintech companies can position themselves to win over the next wave of investors. These strategies are not only critical to acquiring younger investors but also essential for staying relevant in a rapidly evolving financial landscape. Need help with your marketing strategy ? contact us