The industry needs to find more products and strategies that can engage millennials with smaller amounts of money, research by the Personal Investment Management & Financial Advice Association's Millennial Forum has found.
Findings from the Millennial Forum research groups cover four topics, these are: industry promotion, barriers to entry, generational fund flows and the impact of technology.
The initial findings were discussed with an industry panel, which focused on how to attract, engage and retain the millennial clients of the future.
Key findings were that technology is enhancing current offerings and that advisers should encourage more young people into the industry through their family links.
Peter Chadborn, director of Plan Money, said the challenge in finding solutions that would attract millennials was mirrored by the challenge the industry had in attracting younger people to work in the sector.
And where historically young people would have naturally gravitated towards the same adviser their parents used, more recently they are using online platforms to save time.
He added: “The market is making headway. At one end you have much more face-to-face advice and at the other end you have the likes of Nutmeg.
“The utopia has to be somewhere in the middle.”
The study found that the financial services industry also needs to do more to help promote saving habits from schooling age.
The four research groups who ran the study have a background in the investment management and the financial advice industry.
Supported by HM Treasury, they carried out the research over six months.
A full report will be published in the autumn.