Research from GlobalData shows that utilising tech to provide simple, easy to use, and accessible apps is paramount in appealing to mass affluent investors.
FinovateEurope showcases the latest technology in the financial services sector through quick seven-minute demos. One innovation demoed was Titan by Nine Dynamics, an equity analysis tool that focuses on simplicity. The tool uses artificial intelligence to let its users know when stocks are favorable or not favorable to own, in the form of clear color markers.
Another participant of the event was investment platform CybiWealth. While most digital platforms invest individual investors’ money in funds or ETFs, CybiWealth allocates clients’ assets in a portfolio of shares. It reduces the time and complexity of stock picking for the busy mass affluent individual while allowing them to directly own shares.
GlobalData’s 2018 Mass Affluent Investors Survey shows that 53.3% of mass affluent investors between the ages of 18–34 agree they are easily flustered when things are complicated.
This proves the importance of keeping products simple in order to reach the young affluent population and encouraging them to invest. But it applies not only to those investing on their own account but also to young professionals pursuing careers in institutional trading.
However, it is important to remember that while these apps may seem easy to use for the well-informed, tech-savvy investor, it is just as important to ensure the same is true for less technologically advanced individuals or even people who do not understand the market as much. Those providers that are not acute to this will lose out to competitors that provide platforms that resonate better with the masses.
A digital product that is simple and easy to use can help companies welcome new users that were previously put off by jargon and complicated procedures. Therefore, it is important to keep a human-focused design approach when introducing a new product or altering an existing product. This applies both to fintech start-ups and to incumbents developing new offerings.
Latest reports from
Or to search over 50,000 other reports please visitGlobalData Report Store
GlobalData is this website’s parent business intelligence company.