Research Highlights

METHODOLOGY & SAMPLE

The findings in this report are based on the views of 4,186 retail investors surveyed across 11 countries in Europe and Asia. We set quotas by both age and gender to ensure we have a sufficient and robust sample in order to confidently assess differences between demographic groups.

The survey was conducted in the UK, France, Germany, Sweden and Denmark (Nordics), Italy, Austria, Switzerland, Poland, Slovakia and Singapore. The survey was conducted online, in local language, during May and June 2023.

This research was an independent study undertaken by H/Advisors Cicero.

Having a detailed understanding of how the route-to-market affects retail investor behaviours and decision-making is vital for providers and distributors alike.

Retail investors are not all the same. They do not all look, think and feel alike and nor do they consume your products and services in the same way.

Across the key markets in our study, just over one-in-three retail investors are completely analogue in their approach – with 25% digital-only and 39% taking a hybrid online and offline approach to investing. The profile of each of these three groups demonstrates that digital behaviours transcend demographics.

There are high levels of investable assets up for grabs across each of these three groups. We find concentrations of both higher and lower net worth individuals in each investor type.

With almost half of investors expecting to increase the percentage of their portfolio invested digitally over the coming five years, we see more opportunities for you to position and grow digital solutions.

Distribution of retail investors by digital investment behaviours

There are pockets of bullish investors across all three digital investor types who expect to invest greater amounts over the coming 12-months. Firms, though, cannot lose sight of the challenges and barriers faced by many that may dampen opportunities for growth over the next year.

Expected change to the amount invested over the coming 12-month in comparison to the previous year

Key Findings:

Retail investors are not all the same. They do not all look, think and feel alike and nor do they consume your products and services in the same way.

Just over one-in-three retail investors are completely analogue in their approach – with 25% digital-only and 39% taking a hybrid online and offline approach. Digital behaviours transcend demographics.

There are high levels of investable assets up for grabs across each of these three groups. We find concentrations of both higher and lower net worth individuals in each investor type.

With almost half of investors expecting to increase the percentage of their portfolio invested digitally over the coming five years, we see more opportunities for you to position and grow digital solutions.

There are pockets of bullish investors across all three digital investor types who expect to invest greater amounts over the coming 12-months. Firms cannot lose sight of the challenges and barriers faced by many that may dampen investor confidence.

Having a clear understanding of what drives investment behaviours is fundamental to successfully attracting and retaining retail investors.

Financial security and wanting a comfortable retirement are universal messages that will resonate with investors of all demographics across both digital and analogue channels.

Strength and stability, ease of contact, fees and brand awareness are the most important provider factors when making an investment decision. This holds true for both digital and analogue investors.

Distributors do not need to rip up their approach and start again when it comes to engaging the NextGen investors – those aged 21-30. Our findings show that this age group display digital behaviours comparable to those of older age groups, while influences, motivations and drivers of product and provider choice also remain broadly the same.

How important would each of the following investment provider features be to you when making an investment? - those selecting vital / significant

However, when it comes to the factors driving investors towards digital platforms our findings show that the way you nuance your messages will have a significant impact on how well your offer resonates. For example:

For male investors it is more about having the control at their fingertips – and not having to deal with the delays that can be involved in dealing with a professional.
For female investors, the key is the ability to access information on their investments anywhere and at any time. That said, they are also far more likely than male investors to state that they were recommended the platform by a family member or friend.

Key Findings:

Financial security and wanting a comfortable retirement are universal messages that will resonate with investors of all demographics across both digital and analogue channels.

Strength and stability, ease of contact, fees and brand awareness are the most important provider factors when making an investment decision. This holds true for both digital and analogue investors.

However, when it comes to the factors driving investors towards digital platforms our findings show that the way you nuance your messages will have a significant impact on how well your offer resonates.

For male investors it is more about having the control at their fingertips. For female investors, the key is the ability to access information on their investments anywhere and at any time.

Our findings show that those aged 21-30 display digital behaviours, motivations and product/provider choices similar to those of older age groups, however there are certainly differences and opportunities to target this audience more precisely.

Digital technologies and platforms enable more access to information, education and tools for financial planning and management. These technologies clearly create both new opportunities and challenges for professional financial advisors.

Globally, an average of 46% of retail investors use the services of a professional financial advisor – which could include an advisor in a bank, insurance company, a broker or an independent advisor. This differs widely by country – largely due to local norms.

But there is a link between professional advice and digital usage – with advised investors far more likely to adopt a hybrid digital / analogue approach to their investments, perhaps in part due to the confidence that having advice offers them.

Our data also demonstrates that up to a third of advised digital investors are adopting that channel after previously using a non-digital service from the same provider, demonstrating that providers can use digital platforms to help retain and grow existing clients.

Use of professional financial advice among retail investors - by country

When considering a specific investment decision, professional advice, banks and investment providers are the key sources of information, advice and guidance that influence investor decisions. However, there are a long tail of sources that influence a minority. Despite influencing relatively few, these sources can have a disproportionately strong influence among that minority. Ignore them at your peril.

Influence of social media on investment decision making is rated as vital or important for almost one in ten investors across our global sample, when considered in the context of a specific investment decision. The influence of social media is slightly higher in Asian markets than it is in Europe, though it is not a shortcut to you reaching NextGen investors.

% selecting social media as a source of information, advice or guidance if looking to invest a sum equiv. to one month of salary

Key Findings:

Globally, an average of 46% of retail investors use the services of a professional financial advisor – which could include an advisor in a bank, insurance company, a broker or an independent advisor. This differs widely by country – largely due to local norms and the cost of advice.

There is a link between professional advice and digital usage – with advised investors far more likely to adopt a hybrid digital approach to their investments, perhaps in part due to the confidence that having advice offers them.

Up to a third of advised digital investors are adopting that channel after previously using a non-digital service from the same provider, demonstrating that providers can use digital platforms to help retain and grow existing clients.

The influence of social media on brand discovery and awareness is rated as vital or important for almost one in ten investors. The influence of social media is slightly higher in Asian markets, though it is not a shortcut to you reaching NextGen investors.

When considering a specific investment decision, professional advice, banks and investment providers are the key sources of information, advice and guidance that influence investor decisions. However, there is a long tail of sources that influence a minority.

How to gain and retain loyalty is a key challenge for investment platforms – particularly digital channels where exposure to competition is greater, incentives can be more easily offered, and access is designed to be as quick and painless as possible.

Younger generations of retail investors are more likely to already hold investment accounts (both traditional and digital) with multiple, demonstrating that the challenge from competition is only going to crystalise over time. Our data shows this is already more of a challenge for providers based in Austria, Switzerland, Nordics and Singapore where assets are already more widely dispersed.

% holding an investment account with more than one digital or traditional investment provider

Recommendations are particularly important for NextGen investors. Younger men are particularly likely to provide a recommendation, while women are more likely to have chosen a digital platform on the back of such a recommendation.

Want to drive more recommendations? Focus on ease of use in the platform and creating a sense of trust between you and the user. The range of investments, performance and cost are clearly important hygiene factors – but secondary when it comes to driving recommendations.

Recommendations are key when it comes to digital tools and platforms. 44% of those investing through digital means stated that they were made aware of the platforms they use via recommendations from family or friends. Furthermore, around half of digital investors have recommended their app or platform to a friend of family member.

% having recommended their app / digital solution to a friend / family member

Key Findings:

How to gain and retain loyalty is a key challenge for investment platforms – particularly digital channels where exposure to competition is greater, incentives can be more easily offered, and access is designed to be as quick and painless as possible.

Younger generations of retail investors are more likely to already hold investment accounts (both traditional and digital) with multiple sources, demonstrating that the challenge from competition is only going to crystalise over time.

Recommendations are key when it comes to digital tools and platforms. Two in five digital investors stated that they were made aware of the platforms they use via recommendations. Around half have recommended their app or platform to friends/family.

Recommendations are particularly important for NextGen investors. Younger men are particularly likely to provide a recommendation, while women are more likely to have chosen a digital platform on the back of such a recommendation.

Want to drive more recommendations? Focus on ease of use in the platform and creating a sense of trust between you and the user. The range of investments, performance and cost are important hygiene factors – but secondary when it comes to driving recommendations.

Tackling the under-representation of women in investments is an important challenge facing the industry now and into the future as women take increasing responsibility for wealth.

Female investors are typically far less confident in the financial decisions that they are making than their male counterparts and are also far more likely to feel under-informed.

The challenge facing providers is how to address this in your communications and engagement with them. Our findings show that female investors would most likely look towards how-to guides, video explainers and short articles to build their investment knowledge.

You may need to take the message to them as opposed to waiting for them to come to you – with women less likely to actively seek information, advice and guidance from almost all sources.

Type of educational content that female investors prefer for improving personal knowledge of investing

Family and friends are a key engagement channel for women investors. It is their go-to for information and advice. Women who invest digitally are for more likely to have been made aware of their app or tool through a referral from family member or friend. Consider how to encourage more of your female clients to recommend you to other women – given that they are far less likely than men to have recommended their platform to another person.

Given the increased likelihood in women placing their assets in less risky investments and their typically lower annual income, messages will need to focus on appeasing any fears of making losses, changing mindsets as to “how much” someone needs to earn in order to start investing and making the world of investing feel more inclusive.

How female digital investors were made aware of the digital tools / apps they currently use:

Key Findings:

Female investors are typically less confident in the financial decisions that they are making than their male counterparts and are also more likely to feel under-informed. The challenge facing providers is how to address this in your communications.

You may need to take the message to them as opposed to waiting for them to come to you – with women less likely to actively seek information, advice and guidance from almost all sources.

Family and friends are a key engagement channel for women investors. It is their go-to for information and advice. Women who invest digitally are more likely to have been made aware of their chosen app or tool through a referral from a family member or friend.

Consider how to encourage more of your female clients to recommend you to other women, given that they are less likely than men to have recommended their platform to another person.

Messages will need to focus on appeasing any fears of making losses, changing mindsets as to “how much” someone needs to earn to start investing and making the world of investing feel more inclusive whilst highlighting the benefits of inclusivity.

With more and more investors beginning to engage with digital channels with at least a portion of their investments, we already see the issue of personalisation becoming increasingly important. This demand for personalisation, though, is about more than just financial factors. Our research shows that personal values are becoming an increasingly important aspect of retail investor decision-making.

Personal values are becoming an increasingly important aspect of retail investor decision-making. Across all markets, age groups and wealth brackets, investors want their personal values to be reflected in the investment decisions that they make.

Ownership of ESG-labelled investments and drivers of decisions clearly demonstrate that ESG considerations are now firmly embedded across the entire retail investor landscape. Digital investors are more active in the ESG space and are twice as likely as non-digital investors to actively seek out an ESG solution. While not universal, three-in-five investors expect to increase the weight of ESG-labelled investments in their portfolio over the coming 12-months.

% stating that they hold sustainable or ESG-labelled funds in their portfolio

Three-in-five investors feel it is important / vital that their fund manager has a strong commitment to ESG.

There are market nuances as to the drivers of ESG investments – with those in the UK and Singapore more likely to be driven by long-term performance considerations than they are wanting their investments to have a positive impact. The opposite is true in Italy, Germany and Switzerland.

ESG means far more than just “green”. Societal issues are at least as important as environmental factors to retail investors globally.

Top-five ESG themes investors would most like to invest in

Top-five industries that investors would most want to avoid investing in

Key Findings:

Across all markets, age groups and wealth brackets, investors want their personal values to be reflected in the investment decisions that they make.

Four of five investors feel it is important or vital that their fund manager has a strong commitment to ESG.

ESG considerations are now firmly embedded across the entire retail investor landscape. Digital investors are more active in the ESG space and are twice as likely as non-digital investors to actively seek out an ESG solution.

There are market nuances as to the drivers of ESG investments – with those in the UK and Singapore more likely to be driven by long-term performance than they are wanting their investments to have a positive impact. The opposite is true in Italy, Germany and Switzerland.

ESG means far more than just “green”. Societal issues are at least as important as environmental factors to retail investors globally.

We are passionate about being your partner.

As the retail digital investment landscape continues to evolve, Amundi will be by your side for the transformation. Your trusted partner for insights, innovative investment solutions and services.

Gäetan Delculée

Deputy Global Head of Distribution

Miriam Oucouc

Global Head of Client Experience

Contact us at client_insight@amundi.com if you would like to request a full copy of the research, organise a discussion about how Amundi can support your digital distribution needs, or have any other questions.

Led and coordinated by Bethany Morris, Global Head of Client Insight & Innovation

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