FOMO, social media driving millennials' investing decisions

Wealth managers are being forced to reassess the services they provide to this generation.

Oct 10, 2018 @ 4:53 pm

By Bloomberg News

Millennials' use of social media is helping drive their investment decisions, according to Fabrizio Campelli, Deutsche Bank's global head of wealth management.

They have a "fear of missing out" (FOMO) as they're more "networked and exposed" through social media to their peers' activity than previous generations, Mr. Campelli said Wednesday during a discussion about millennial wealth at the Bloomberg Invest Summit in London.

Born between the early 1980s and mid-1990s, millennials' growing focus on investments that align with their personal values and lifestyles is forcing wealth managers to reassess their services. They're set to inherit as much as $30 trillion, according to research firm CB Insights, and their adulthoods align with the post-2000 inception of global social media networks like Facebook and Twitter.

"We are really looking at this phenomenon because that's what is causing a lot of millennials to explore non-banking partners in some of their financial services support," Mr. Campelli said.

FOMO has become a widespread term to capture anxiety arising from other users' posts of interesting events. Social media networks have in turn helped spawn trading sites such as eToro, which allows users to copy other investors' activity.

These trading sites "cater to the ability to say, 'Look at how successful this investor was. You can be as successful by copying that strategy,'" Mr. Campelli said. FOMO is "much more prevalent among millennials rather than with Generation X or Baby Boomers."

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

4 secrets to adviser growth: Client experience

The client experience is critical for firms to thrive today. This is especially true for your wealthiest clients. SEI's John Anderson and Allie Carey offer some strategies for success.

Latest news & opinion

Top 10 RIAs in the South

These are the largest registered investment advisory firms in the Southern U.S., based on AUM.

Top 10 RIAs in the Midwest

These are the largest registered investment advisers in terms of AUM in the Midwestern U.S.

Top 10 RIAs in the Northeast

These are the largest registered investment advice firms in the Northeastern U.S., in terms of assets under management.

10 predictions for financial advice in 2019

Deloitte expects these 10 changes will hit the financial advice business in 2019.

Midwestern magic? RIA assets soared nearly 30% there last year

Theories for what's driving the growth spurt abound, but it surpassed all other regions of the country.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print