A new type of investor has entered the market. These new investors are young adults, and they incorporate technology into almost every facet of their lives. The rise of this new generation and advancements in technology has made this generation invest considerable sums of money even during a global pandemic. Let us look at some of the technological developments that have helped younger generations enter the world of investing.
Social media has helped young people to invest their extra money. People can easily take screenshots and share their portfolios with friends and family. This lets the young investor feel more comfortable investing, and it encourages others to invest too.
Mobile banking is a major technological trend spurring investment from the younger generation. Many investment apps are free, and some even provide real-time market updates. Expert advice, financial recommendations, and access to their portfolios at their fingertips make mobile banking one of the major drivers of investing in the younger investment demographic.
Digital stock trading is also driving investment among younger people. Investors no longer have to go to a brick-and-mortar location to buy or sell stocks. Online brokerages also offer low or no fees, and the online layout is intuitive for young investors. The ability to research stocks and buy and sell them online is also less stressful than the old ways of stock trading. All of this makes it more attractive and easier than ever to trade and invest in stocks.
The ability to access information about the financial industry is no longer limited to industry insiders. There are also many financial blogs and news sources that cater to young and first-time investors. With more information readily available, young investors feel more comfortable putting their money into various investment vehicles.
Matching and loyalty programs are springing up in the financial industry. Some banks and brokers are now matching investments made by an investor to encourage them to invest more money. Loyalty programs reward investors for putting their money into investments and nudge them to invest more for their future.
Young investors with little to no financial knowledge had previously faced significant barriers to investing. Technologically has changed the way people invest and financial research information. With new technology and information at their fingertips, the young investor is a rising demographic in the financial industry that may very well begin to move markets in the future.