In PA's latest Millennial Money episode, where experts dissect the money issues that matter most to millennials and those who advise them, advisers highlight how social media can be used to attract younger clients.
When asked if millennials' stereotypical favourite pastime - using social media excessively - could be used to attract new clients, both Informed Choice paraplanner Andy Bodman and Penguin Wealth trainee financial adviser Tom Davies agreed on its merits.
"Social media matters a lot," says Bodman, in the video - which can be viewed by clicking the picture above. "Some 30% of our new business comes from social media and websites. It is there to stay and it needs to be used - and the more you use it, the better."
He adds: "Millennials want advice that is available, easy to access and cheap, and social media is a way of working with that."
Davies agrees, noting using social media can make companies more accessible. "We have only recently started really pushing on Facebook and LinkedIn, and we have had our first couple of leads come in the last few weeks," he continues. "So it is something we can see is actually working.
"It is the younger people who are coming through - not your 65-year-olds. We are getting young business owners who are coming through, people who are just there flicking through their phone and think, ‘okay, maybe I'll have a look at this.'"
Davies explains how Penguin Wealth has recently started using Youtube videos as a way to connect with clients. While he jokes the first couple were "pretty awful", he says the firm has received positive feedback and plans to carry on using the platform. The firm is also considering starting a podcast to talk more about financial advice, he adds.
Elsewhere, both 20-somethings argue contingent charging as a whole - and not just in the context of defined benefit transfers - is a relic that should, and will, be left in the past.
"Contingent charging needs to change - and the sooner the better, for everything," says Bodman. "If you have a fixed-fee basis and it is transparent, the client knows what they are getting upfront and there as no hidden charges. It is a lot fairer."
Davies adds: "I would not necessarily want to move to the way it is with solicitors with an hourly rate, because then you risk the problem of people dragging their feet just to get paid. I can see in the next 10 years, however, everything will be flat-fee."
To hear more of the duo's thoughts on millennials and the future of the industry, please click on the video at the top of the page
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