This article discusses the new wave of robo investor applications and how millennials are flocking to these environments in record numbers. Robo investors are able to give millennials an investing service much cheaper than the traditional financial advising system. Fintech has enabled these companies to create a low cost solution that does not require the large marketing costs that come with many of the traditional players. Millennials are using more of these applications because they are able to trust the technology behind it. There is a need for this area of fintech from Millennials as this generation has one of the highest savings rate of two thirds of the group putting more than 5% of their paychecks into savings. Millennials enjoy putting their savings into a service that will automatically invest, re-balance, and adjust their capital.
Many of my friends are avid users of these types of services that have a very intuitive user face and make setting up the service friction-less. I believe much of my generation will likely shy away from the mutual fund or high fee route in favor for a more ETF and index approach which is widely used by the fintech applications.
http://www.forbes.com/sites/hbsworkingknowledge/2016/12/07/why-millennials-flock-to-fintech-for-personal-investing/2/#727a16524f47