Generation Shift: Why Millennials and Gen Z Might Ditch Old-School Investment Firms

–News Direct–

Traditional wealth management companies might need to rethink their strategy or risk losing younger clients with new regulations set to reveal high banking fees.

According to a new investment satisfaction survey by J.D. Power, 25% of Gen Z and 22% of Millennials would consider switching wealth management firms in the next year, citing high transaction costs as their main concern.¹

The upcoming fee transparency regulations, known as total cost reporting, are set to take effect in 2026 and would require more clarity and communication in explaining the costs and fees associated with investments.

This sentiment is echoed in findings from a Broadridge/Roubini ThoughtLab survey, which illustrates that Millennials possess a deep understanding of financial concepts critical to investment success. They are acutely aware of how fees can eat into returns, prefer index funds for their cost-effectiveness, and understand the use of derivatives for risk mitigation.

These evolving preferences indicate a seismic shift in how younger generations approach investing, prioritizing transparency, low fees, and the ethical dimensions of their investment choices.

This shift provides a fertile ground for innovative financial technology companies like Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO), which is stepping in to meet these new consumer demands with modern, user-friendly solutions.

Mogo Redefines Finance with Millennial-Centric Solutions

Mogo, which is one of Canada's largest FinTech companies, stands out with its innovative approach to simplifying finance and empowering users to take control of their financial futures. With services like MogoTrade and Moka.ai, Mogo offers Millennials and Gen Zers a compelling alternative to traditional money managers, aligning with their desire for transparency, low fees, and accessible wealth-building opportunities.

Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO) boasts over 2 million members and processes $9.9 billion in payments annually. Mogo also holds around 13% equity in WonderFi, which operates Canadas only fully regulated crypto exchange.

The Mogotrade platform allows users to trade stocks without commission, following a long-term investing strategy inspired by Warren Buffett, while its recently launched Moka.ai, a revamped version of its wealth-building application, which leverages behavioral science principles and provides tools for setting and managing financial objectives to guide users towards financial success. Moka.ai charges a $7 monthly fee, regardless of investment size, contrasting traditional high-fee mutual funds.

Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO) recently announced its Q4 and FY 2023 financial results, marking significant strides in operational efficiency and profitability. Under the leadership of founder and CEO David Feller, the company focused on enhancing its digital wealth platform, culminating in the successful relaunch of Moka and Mogo.

These efforts contributed to a slight increase in Q4 revenue to $17.2 million and a gross profit of $11.5 million. Operational efficiencies reduced total operating expenses by 25% to $11.7 million for the quarter, boosting revenue per employee by 83% since Q1 2022.

The year also ended on a high note with net income of $8.5 million, a dramatic improvement over the previous year's net loss of $74.9 million. Mogo's commitment to innovation is further underscored by its new strategy to include Bitcoin and Bitcoin ETFs in its treasury management, reflecting its adaptability and forward-thinking approach in the financial sector.

Mogos investment portfolio includes several crypto-related ventures that represent about 35% of the company's total market cap value. This includes investments into Canadas leading digital currency exchange WonderFi, American digital currency exchange Gemini Trust, and Canadas first licensed digital asset custodian, Tetra Trust. This exposure positions Mogo to benefit from the growing digital currency sector, which is expected to reach $11.71 billion by 2030.²

Click on this link to learn more about Mogo Inc. (TSX:MOGO)(NASDAQ:MOGO).

Footnotes:

[1] https://ca.finance.yahoo.com/news/young-investors-more-likely-switch-100000539.html

[2] https://www.grandviewresearch.com/industry-analysis/cryptocurrency-market-report

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6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, forward-looking statements), which reflect management's expectations regarding Mogo Inc.s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as predicts, projects, targets, plans, expects, does not expect, budget, scheduled, estimates, forecasts, anticipate or does not anticipate, believe, intend and similar expressions or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to Mogo Inc.s industry; (b) market opportunity; (c) Mogo Inc.s business plans and strategies; (d) services that Mogo Inc. intends to offer; (e) Mogo Inc.s milestone projections and targets; (f) Mogo Inc.s expectations regarding receipt of approval for regulatory applications; (g) Mogo Inc.s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) Mogo Inc.s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of managements experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute Mogo Inc.s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) Mogo Inc.s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) Mogo Inc.s ability to enter into contractual arrangements with additional parties; (e) the accuracy of budgeted costs and expenditures; (f) Mogo Inc.s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of Mogo Inc. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) Mogo Inc.s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact Mogo Inc.s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing Mogo Inc.s business operations (e) Mogo Inc. may be unable to implement its growth strategy; and (f) increased competition.Except as required by law, Mogo Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does Mogo Inc. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither Mogo Inc. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.

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