Global investment funds poised for disruption as millennials place trust in big techs______

Research released by Calastone, the largest global fund network, reveals that half of millennials would, if it was offered, purchase investment products through a well-known technology company (e.g. Google, Apple, Microsoft).

Calastone’s study which surveyed more than 3,000 people aged 23-35 across the UK, France, Germany, US, Hong Kong and Australia also found that, for millennials who already actively invest, this figure rises to almost two thirds (63%) globally and to a massive 71% in the UK, which could have significant impact on the $47 trillion funds industry*.

As well as placing trust in big tech, millennial investors in the UK also place a significant degree of trust in technology itself, with 52% stating that they would trust a computer algorithm to invest their money for them. Interestingly, the UK came out on top as the most trusting of algorithm-based investing, with a higher percentage than peers in Europe, the US and Asia.

There is a clear trend that shows as young investors become more sophisticated, their willingness to buy elsewhere and to look at non-traditional players increases, indicating that loyalty to current providers does not necessarily increase over time.

This comes at a time when challenger banks and mobile money management platforms are drawing millennials – and their wallets – from mainstream finance. When it comes to investing, Calastone’s survey highlights that there could be a shift to “big tech” for the global funds sector. As other areas of financial services have reacted to the evolving needs and increasing tech-savviness of younger generations, the investment and funds world must also start to focus on the areas that make big techs’ successful, such as accessibility and user experience.

Whilst the Silicon Valley behemoths have yet to immerse themselves within the investment management world, they have encroached on other areas of financial services. The current regulatory environment may not deter big technology companies from moving into the funds industry given the scale of the opportunity, especially as trust in technology has never been so high.

Andrew Tomlinson, Chief Marketing Officer at Calastone comments:

“With the knowledge that there is already a growing level of trust from millennials, who would consider buying investment products from big tech companies, the potential for the technology giants to enter the investment world only increases. Whoever controls access to the investor, controls the market. Fund managers and distributors need to be mindful of this.

Many big techs already offer basic financial products and in Asia we’ve already seen Alibaba’s, Ant Financial, entering the investment funds market and in doing so attracting a huge investor base to creating the world’s largest money market fund. Given the opportunity for these companies and the scale of their client base, other markets could follow. The industry should look at what makes these big techs so successful – accessibility with a positive user experience – and learn from that if it is to navigate the coming changes.”

To access Calastone’s full survey, you can follow the link at

*Investment Company Factbook


The composition of investors in the funds industry is changing, with millennials poised to become an increasingly important client target market for asset managers in the next five to ten years. The millennials are a digitally astute demographic, without significant sums of money to invest.

As millennials entered full-time employment during or shortly after the financial crisis, wage growth has been subdued for many of them, leaving this demographic with less disposable income than the Baby-boomer and Generation Y cohorts. It is now imperative that asset managers acquire a better understanding of what this subset of the population needs, and ensure their strategies are closely aligned with those very same requirements.

Calastone surveyed more than 3,000 people aged between 23 and 35 across the UK, France, Germany, US, Hong Kong and Australia, asking them about their attitudes towards personal saving, investment management and financial services more broadly. The study identifies wider lifestyle choices and behaviours across this age bracket that may influence their relationship with saving and financial management.

The overarching objective of this study is to obtain a better understanding of millennials and their approaches towards personal finance, investment and money management. This report will provide some powerful insights as investment providers start to focus on providing for a new set of requirements from this expanding and evolving demographic.

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