The second iteration of Amundi’s digital investment research "Decoding Digital Investment"
We publish a survey assessing how digitally engaged retail investors are: from holding investments on digital platforms to using digital sources of information and advice for decision making.
This is the second iteration of Amundi’s digital investment research: it now covers 25 countries with over 11,000 retail investors surveyed across a range of demographics.
The second edition of our study 'Decoding Digital Investment' provides a wealth of information for those seeking to understand the changing expectations and behaviors of investors. The study highlights the importance of professional investment advice: almost three times as many investors who receive support - whether through a human or through meetings or digital means - have established a structured investment plan.
While the use of digital channels continues to grow globally, fostering financial education and developing hybrid advisory model is more essential than ever to help investors reach long-term investment goals.
Investing digitally isn’t just for younger investors, with high numbers of investors investing digitally across all ages.
77% of respondents to the study invest at least some of their portfolio on a digital platform or app.
There is a divergence between different countries with Finnish (95%), Brazilian (89%), Swedish (89%) and South Korean (89%) investors embracing digital means more strongly than their peers in Thailand (46%), Japan (64%) and France (65%).
And the study proves that digital investment is not limited to the younger demographics, with 68% of those over 50 globally holding digital investments. This number grows for younger investors, so we can expect the number of investors with digital holdings to grow as younger generations age.
A wide variety of sources of information
Nearly three-in-four retail investors globally (73%) source investment information or advice through digital means; this figure is lower in Europe (69%) and higher in Asia (76%).
38% of respondents favour media influencers from TV, radio, podcasts, online blogs and social media for investment guidance, whereas 31% prefer to go direct to the investment provider’s website.
When it comes to specific social media platforms, YouTube is the most influential amongst retail investors (72%), followed by Instagram (49%) and Facebook (46%). European investors are less likely to turn to digital influencers, especially those aged 51 – 60. While the use of digital sources of information is high, the need for human advice remains important and continues to play a significant part in investor decision making.
A hybrid professional advice model has a significant part to play for building a structured financial plan
The research shows that over half of investors (54%) do not have a well-developed long-term financial plan –but that those who do, are four times more likely to say they’re very confident about achieving a financially secure retirement than those without a plan. We also see that those receiving professional advice (digitally or in person) are almost three times more likely to have a plan than those not receiving advice – indicating the important role advice plays in its many forms.
Digital only investors (19%), though, are far less likely to access professional advice (whether in-person or digitally), meaning they are less confident about their investment decisions (62% vs 69%) and less confident about achieving their investment goals.
Findings also show that retail investors value professional investment advice from a human particularly when it comes to long term financial planning.
However, even analogue investors are interested in improving their knowledge and exploring investment options online. This demonstrates the need to explore adopting a hybrid model in order to meet investor needs holistically.
Retirement as the main investment objective but still insufficiently reflected into allocations
When asked what drives people to invest, globally the top reason is a comfortable retirement (41%), followed by making as much money as possible (39%).
Interestingly, people seem confident in their investment decisions generally speaking, but this does not translate into an expectation of achieving their retirement goals. Two thirds (66%) of respondents believe they are making the right investment decisions, but just one in four (26%) feel they are on course to achieve the income needed for retirement. This could be because more than half (54%) of global investors don’t have a firm financial plan to back their decision making.
