A mere 8% of the country’s millennials can demonstrate high financial literacy. Millennials are a generation of which 81% have long-term debt and only one quarter of them can demonstrate basic financial knowledge. Instead, 67% of this do-it-yourself generation is getting the majority of their financial advice from two sources: Facebook and Twitter. This advice is unreliable and often incorrect.
Meanwhile, the financial advising industry has not adapted to the demands of the next generation who are used to technology-based, and mobile-first service with 43% of millennials saying their financial institution does not communicate with them through their preferred channel of technology and 53% of millennial-millionaires saying they would find a new advisor if theirs was not using technology. On the other hand, 86% of financial advisors are ignoring genX and millennials as potential clients all together. The average age of a financial advisor is 51 and older advisors are selling their practices and retiring at a much faster rate than younger advisors are coming in, resulting in an expected shortage of 200,000 advisors by 2022.
Burdened with debt and lacking basic financial knowledge, genx and millenials are approaching their prime earning and savings years without sufficient preparation. The industry expecting to serve them will not be prepared to do so with insignificant technology, archaic practices, fewer advisors available and a flaw in the industry that until a person has accumulated significant wealth, advisors are not compensated to serve them. Must we teach the next generation that in order to qualify for financial advice, they must first grow their wealth? Yet, how can they do so without access to the very financial advice they need to accumulate wealth?
PocketNest is well-suited to remedy this brewing financial crisis for both financial institutions and the next generation of consumer they expect to serve.
Our Social Impact:
The PocketNest team is on a mission to demystify and democratize comprehensive personal financial planning. By revolutionizing an industry that has been historically for elite and high-net worth individuals through traditional financial advisors, we aim to make comprehensive personal financial planning and financial education accessible to everyone through a scalable, methodical and proactive digital platform.
We do this all through a white labeled platform for institutions. Financial institutions like banks, credit unions, investment companies and non-financial institutions like universities, employee wellness platforms and non-for profits.