A new study by DriveWealth reveals the secrets of the psychology of retail investors from 23 countries around the world

Data shows younger investors with smaller pockets and better access to technology reshaped investing during historic retail revolution

JERSEY CITY, NJ, April 20, 2022–(BUSINESS WIRE)–DriveWealth, LLCa pioneer in fractional investing and integrated finance, today released “The phenomenon of new investors: a wave of opportunities,“a guide to understanding the mindset of the global retail investor. Spurred by the outbreak of COVID-19, the retail revolution has marked a new era where huge swathes of investors have entered in the markets and have changed what it means to be an “investor. Their investing behaviors may seem like an anomaly, DriveWealth’s guide reveals insights into the psychology behind their trades – their motivation to participate in the markets, the tools they they use to trade and the tools they still need to tackle the decade of the digital investor.

Key findings from the DriveWealth guide include:

  • Remote living has led to remote investments: As capital markets underwent a mobile technology revolution in the years leading up to COVID-19, the sudden and total shift to remote living dramatically accelerated this transformation and created opportunities for a new generation of investors. 35% of active investors got their start during the pandemic, including those in emerging markets like South Korea (56%), Indonesia (53%), India (51%) and the Philippines (48%) ).

  • New investors bias young people: About half of all Gen Z investors opened their first account during the period March 2020 to August 2021, with 59% of this generation opening their first account in LATAM, 68% in APAC, 63% in Middle East, 49% in Africa and 23% in the United States In all regions, the percentage of investors with less than USD 10,000 who made their first investment during this period was significantly higher than all other levels of wealth.

  • Tech-savvy investors have gone digital: Advances in technology and market forces have helped stimulate this new wave of investors. Across all regions, more than 40% of investors opened their most recent investment account on a mobile app and 31% traded digital assets as their first investment. Regardless of available technology, in 18 of the 23 markets surveyed, the most common motivation to start investing was low account minimums.

“This new investment paradigm is driven by factors that are breaking down traditional investment barriers. Integrated finance platforms are making markets more accessible than ever, with mobile technology making it easier for investors of all ages to access markets from the comfort of their homes,” said Bob Cortright, Founder and CEO of DriveWealth. “As we dive deeper into the decade of the digital investor, financial services providers have an incredible opportunity to further engage with investors by equipping them with the tools they need to own their financial future. “

The results of the study highlighted significant opportunities for financial providers in the new investment landscape. 76% of respondents said they would prefer to access financial information and education through mobile investment apps, and 87% agreed that the ability to invest very small amounts was a good way to learn how to invest.

“Two years into the pandemic, the world has reached a historic inflection point, not only in terms of access to capital markets, but also in terms of the opportunity for suppliers to connect even stronger with retail investors,” said Harry Temkin, chief information officer of DriveWealth. “The ability for vendors to offer fractional shares has been one of the most significant developments in trading, as it gives investors the power to enter markets using small, yet meaningful amounts. Providers must offer the technology and tools investors need to make the markets even more accessible, or risk becoming irrelevant.”

About DriveWealth

DriveWealth, a pioneer in fractional stock trading and integrated investing, is a visionary technology company that enables over 100 partners around the world to engage their clients by putting the markets in the palm of their hand. We believe the future is fractional, transactional and mobile. Every mobile device should be a gateway to access investment and savings products, services, advice and assistance for global citizens of all ages, wealth levels and backgrounds. of financial expertise. DriveWealth’s advisory support and modern cloud-based technology platform enable partners to seamlessly deliver branded investing experiences to drive client acquisition, loyalty, retention and revenue growth . For more information, please visit drivewealth.com or join us on Twitter @DriveWealth Or on LinkedIn.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220420005438/en/

contacts

Media
Emily Baldwin, DriveWealth
Email: [email protected]
LinkedIn: linkedin.com/in/emilycbaldwin/