Millennials and Gen Z investors are transforming the financial sector, and their influence keeps growing. Recent research shows that 82% of Gen Z investors in the U.S. started investing before they turned 21, driven by easy access to digital platforms and cryptocurrencies source. In Canada, 74% of Gen Z investors report owning at least one investment product, highlighting the trend toward early financial engagement . Millennials, too, play a pivotal role in shaping sustainable investment trends, with 66% of them investing in ESG funds . These generational shifts are reshaping asset management, requiring firms to adapt their strategies to attract and retain these investors.
Why Millennial and Gen Z Investors Are Crucial for Growth
The Rising Influence of Younger Investors in the Financial Space
Millennials and Gen Z now account for 43% of the U.S. population and are poised to inherit one of the largest wealth transfers in history, estimated in the tens of trillions of dollars source.
Both generations are digital natives, influencing financial trends through their preference for technology-driven, sustainable investments. Their growing financial influence is changing how asset managers design products, services, and experiences.
What Millennial and Gen Z Investors Look for in Financial Services
Young investors demand seamless digital experiences, personalized advice, and impact investing options.
– Impact investing is important to these investors, with 40% of Gen Z prioritizing “companies with a purpose” .
– Transparency and control through mobile apps and digital dashboards are key expectations.
– Education and guidance—both Millennials and Gen Z value accessible financial literacy content, with Gen Z heavily influenced by social media financial influencers.
Top Digital-First Strategies for Acquiring Young Investors
Leveraging Social Media for Brand Awareness and Engagement
Social media platforms play a pivotal role in acquiring young investors by meeting them where they spend their time online.
Using Instagram and TikTok to Capture Attention
Gen Z heavily relies on platforms like Instagram and TikTok for financial updates and education.
– 41% of Gen Z investors say that TikTok influences their financial decisions, with many engaging with quick tutorials and influencer content source.
– 56% follow financial influencers on Instagram, using these platforms to stay up-to-date on investment trends.
These statistics emphasize the need for asset managers to create visually appealing content such as infographics, reels, and challenges to engage Gen Z effectively.
The infographic above shows how Millennials and Gen Z use different platforms .
Engaging Professional Networks on LinkedIn
While Instagram and TikTok capture casual attention, 63% of Millennials use LinkedIn weekly to stay informed about financial news and professional updates. Asset managers can leverage LinkedIn to build thought leadership, share success stories, and promote webinars targeting young professionals interested in long-term financial growth.
Personalizing Content and Messaging
Personalized messaging is crucial for engagement with both Millennials and Gen Z. Segmentation based on preferences ensures that content resonates with each audience.
Tailoring Content to Different Investor Segments
Millennials may prefer detailed advice about wealth-building and long-term investment strategies. In contrast, Gen Z is drawn to more dynamic content, such as gamified savings challenges and updates on cryptocurrency trends.
Providing Value-Driven Educational Content
Educational content helps build trust with younger investors. Offering webinars, interactive tools, and podcasts about financial literacy positions asset managers as partners in their financial journeys. Want to develop a growth marketing campaign for your business? Contact us.
Data-Driven Campaigns to Attract Gen Z and Millennials
Optimizing Paid Advertising on Google and Social Media
Paid ads on platforms like Google, Instagram, and Facebook allow firms to target specific demographics. For example, cryptocurrency ads perform well among Gen Z, while ESG-themed campaigns resonate with Millennials . A/B testing helps firms determine which messages and creatives yield the best results. Want to develop a paid advertising campaign for your business? Contact us.
Tracking and Analyzing Campaign Performance
Using tools like Google Analytics and social media insights, asset managers can monitor metrics such as click-through and conversion rates. Tracking these KPIs ensures continuous improvement and higher ROI from digital campaigns.
Table: Differences Between Millennial and Gen Z Investors
FAQs: Acquiring Millennial and Gen Z Investors
1. Why are Millennials and Gen Z important for asset management firms?
These generations make up 43% of the U.S. population and are expected to inherit trillions of dollars in wealth. Their preferences for technology-driven and sustainable investments are reshaping the financial landscape, making them critical for long-term growth.
2. What motivates Millennials and Gen Z to invest?
Millennials are focused on long-term wealth building, while Gen Z is driven by FOMO (Fear of Missing Out) and social influence. Both groups prioritize sustainable and impact investing, seeking financial products that align with their values
3. Which social media platforms are most effective for targeting Millennials and Gen Z?
- Gen Z: TikTok and Instagram – 41% of Gen Z report TikTok influences their financial decisions, and 56% follow financial influencers on Instagram.
- Millennials: Facebook and LinkedIn – 63% of Millennials use LinkedIn weekly for professional updates and financial news
4. How can asset managers personalize their strategies for different age groups?
Asset managers should segment campaigns:
- Millennials: Focus on detailed advice about long-term investments like mutual funds and ETFs.
Gen Z: Provide dynamic content, such as gamified savings challenges and cryptocurrency updates
