'Wealthsimple' is a financial services company that sets itself apart from the rest by going after a demographic that's not top-of-mind for most people when they picture an investor—Millennials.
As its name suggests, Wealthsimple is designed to take the confusion out of financial services, which is particularly important for young professionals and first-time investors. As an incentive for first-time users, Wealthsimple uses an incentive that promises: "Sign up and get $5,000 managed free."
Within minutes, the app promises to help users get a better understanding of how to set a financial plan, establish the kinds of risks they're willing to take, as well as how to develop a well-rounded portfolio, as determined by Nobel Prize-winning research.
Millennial-Focused Investing Apps
Wealthsimple's Financial App Targets Millennial Investors
Trend Themes
1. Millennial-focused Investing - Innovative financial services companies are focusing on millennials and their unique investment needs to establish loyalty and relevance among this key demographic.
2. Simplification of Financial Services - There is an opportunity for financial services companies to remove confusion and complexity from financial planning, making it more accessible to young professionals and novice investors.
3. Use of Incentives - Financial services companies can attract new users by offering incentives, such as free management, to encourage exploration and engagement with their services.
Industry Implications
1. Fintech - The financial technology industry has an opportunity to create investing apps and services to meet the unique needs of millennials, who have a different approach to money management compared with previous generations.
2. Wealth Management - There is a disruption in traditional wealth management as new, modern companies like Wealthsimple offer low-cost, user-friendly alternatives that speak to how millennials want to manage their finances.
3. Investment Education - Companies that focus on investment education and making it more accessible to a broader audience, such as millennials, can empower individuals to take charge of their financial futures and drive loyalty among engaged users.