Despite continued industry hype around the burgeoning population of Millennials, nearly a quarter of this cohort with a net worth of at least $1 million do not use a financial advisor.

Add to this the fact that over 25 per cent of a Millennial investor’s portfolio is, on average, kept in a deposit account, and the opportunity for financial advisors is clear, Spectrem said in its latest report, The Investing Habits Of Millennials.

Millennials – defined by the research firm as those born between 1981 and 1997 – have now overtaken Baby Boomers as the largest generation yet, according to recent Census Bureau data. Considering that they came of age during the country’s worst economic crisis since the Great Depression, it is understandable that they may be wary about dealing with a financial advisor.

Indeed, a global report suggested that there is a cluster of young investors on the cusp of millionaire status that feel their long-term financial needs and goals have not been fully understood (The Futurewealth Report, 2015). While these individual represent a significant business opportunity for wealth managers, understanding the mindset and preferences within this demographic is crucial.

With that said, various industry trends today are actually creating the perfect environment for advisors looking to win business from these skeptical but savvy individuals, who are comfortable with and trusting of technology, for example.

The flip side is that Millennials can and do research various issues online, including those related to their finances, and so advisors are having a tougher time proving how they can really add value, particularly given the rise of digital wealth managers.

Meanwhile, Spectrem found that non-millionaire Millennials credit their financial advisor for a portion of their wealth creation more so than their Millionaire counterparts, reinforcing why many firms today are seeking business with individuals who are entering their wealth-creation years with the potential to become high-value clients. KAMSouth in Atlanta, GA, for example, recently launched a fee-only financial planning service for young professionals. The service – which costs $600.00 per year – is called YP Elite Wealth Planning and is aimed at young professionals between the ages of 30 and 40.

After focusing on Baby Boomers for decades, Spectrem's report emphasizes that now is the time for financial providers to readjust their focus and revise their strategies. Wealthy Millennials are more likely to own a business or professional practice than older generations, so advisors may want to shape their offering around to reflect that, just as one example.