Digital investing is not confined to younger generations, a new study by Amundi has found, but women are under represented.
The research showed nearly two-thirds (64%) of retail investors internationally invest digitally either in whole (25%) or through a hybrid online/offline approach (39%). While the shift to digital is often attributed to generational behaviour shifts, Amundi said digital engagement is similarly high across all age groups and highest among the wealthiest investors.
Two thirds (66%) of retail investors aged 21-30 invest at least some of their portfolio digitally, compared to 59% of those aged 50-60.
Amundi said the average retail investor typically has over half (53%) of their portfolio invested digitally without the services of an investment professional. However, investors continue to rely on qualified financial advice when making investments, with 2 in 5 looking to a professional adviser when investing a sum equal to a year’s salary, almost five times more than those who would turn to social media.
The trend for digital is likely to increase over the next five years, with 60% of investors in Switzerland and Singapore expecting an increase and 31% of investors in France and 35% of investors in Italy anticipating the same. Those with greater assets were more likely to increase the proportion of their portfolio invested digitally.
According to Amundi, investor confidence has a significant role to play in relation to increasing digital engagement, with 56% of those confident that they are making the right savings and investment decisions expecting to increase the proportion of their portfolio invested digitally, compared to only 27% among those not confident.
But despite the growth of digital investing, the findings of the research show the investment industry needs to take steps to ensure that women investors are better engaged and included to ensure the gender investment gap does not widen further.
Only 16% of women investors are completely confident that they are making the right financial decisions while 27% feel underinformed. Women were also significantly more likely to invest in a fixed-term or savings deposit than men and significantly less likely to invest in ETFs.
Fannie Wurtz, head of distribution & wealth division, Passive Business Line, said: “We are witnessing a profound and enduring transformation of our industry, intensified by rapid digitalization and demographic shifts. Decoding Digital Investment is an essential resource for our wealth and retail partners as the research provides valuable insights into the wants, needs and challenges of retail investors.”
