Speaking to delegates of the Netwealth US Study Tour in New York last week, Centana founder and partner Ben Cukier said many funds and venture capitalists are investing in Millennial-focused fintech businesses despite the Millennials’ lack of investible assets.
“The problem is millennials have no money today,” Mr Cukier said.
Mr Cukier noted that fintech businesses are receiving investment from a number of venture capital funds, but cautioned that these funds are missing the opportunities presented by fintech businesses with a retirement focus.
“These guys are hunting on the wrong side of the tracks,” Mr Cukier said.
“It’s not about the millennials, it’s all about the older guys.”
Mr Cukier explained that Millennials currently account for only 4 per cent of assets under management, with that figure tipped to grow to an “impressive” but not significant 14 per cent in the next 10 years.
Further, the variability and uncertainty around life expectancy opens a number of avenues for fintechs to add value to retiree clients, Mr Cukier said.