How Digitized Are Retail Investors?
This is the question Amundi aimed to address in its latest global report, and the answer it obtained is clear: 77% of respondents invest at least part of their portfolio through a digital platform or app. However, what’s most relevant are the trends identified, ranging from holding investments on digital platforms to using digital sources of information and advice for decision-making.
According to the asset manager, that 77% demonstrates that digital investing is not just for younger investors, gaining ground across all age groups, as 68% of people over 50 globally make digital investments. This figure increases among younger investors, suggesting that the number of investors with digital holdings will grow as younger generations age. Furthermore, the document shows a disparity among countries; with Finnish (95%), Brazilian (89%), Swedish (89%), and South Korean (89%) investors adopting digital methods to a greater extent than their counterparts in Thailand (46%), Japan (64%), and France (65%).
For Fannie Wurtz, Head of the Distribution & Wealth and Passive Division, the Decoding Digital Investment report provides a highly valuable resource for those seeking to understand the changing expectations and behaviors of investors. “The study highlights the importance of professional investment advice: almost three times more investors who receive support—whether through people, meetings, or digital channels—have established a structured investment plan. While the use of digital channels continues to grow globally, promoting financial education and developing a hybrid advice model is more essential than ever to help investors achieve their long-term investment goals,” says Wurtz.
A Wide Variety of Digital Information Sources
Focusing on the report’s findings, it stands out that nearly three in four retail investors worldwide (73%) obtain investment information or advice through digital means, with this figure being lower in Europe (69%) and higher in Asia (76%). 38% of respondents favor influencers on television, radio, podcasts, blogs, and social media for investment guidance, while 31% prefer to go directly to the website of the investment service provider.
Regarding specific social media platforms, YouTube is the most influential among retail investors (72%), followed by Instagram (49%) and Facebook (46%). European investors are less likely to turn to digital influencers, especially those aged between 51 and 60. Although the use of digital information sources is high, the need for human advice remains important and continues to play a significant role in investors’ decision-making.
Professional Advice Through a Hybrid Model
The study shows that more than half of investors (55%) do not have a well-developed long-term financial plan, but those who do are four times more confident in achieving the goal of a financially comfortable retirement than those who don’t. It is also noted that those who receive professional advice (digital or in-person) are nearly three times more likely to have a plan than those who do not, indicating the vital role that advice plays in its various forms.
Exclusively digital investors (19%), however, are much less likely to access professional advice (whether in-person or digitally), meaning they have less confidence in their investment decisions (62% vs. 69%) and in reaching their investment goals.
The results also show that retail investors value human professional advice, especially when it comes to long-term financial planning. However, even analog investors are interested in improving their knowledge and exploring online investment options. This demonstrates the need to explore hybrid models to holistically meet investors’ needs.
Retirement: The Main Investment Goal
When asked what drives people to invest, the primary reason globally is a comfortable retirement (41%), followed by maximizing returns (39%). People generally seem confident in their investment decisions, 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 only one in four (26%) feel they are on track to obtain the income needed for retirement. This may be due to more than half (54%) of global investors lacking a solid financial plan to support their decision-making.
The Particular Case of the Retail Investor in Spain
In Spain, overall, Spanish investors are slightly less likely than the European average to invest through digital platforms (72% vs. 78% in the EU). Notably in Spain, half of the investors have a well-developed long-term financial plan, compared to 39% of investors in the EU.
Specifically, men (40%) are more convinced than women (30%) to invest for a comfortable retirement, long-term financial security, or to retire early (32% vs. 16% of women). Likewise, 65% of Spanish investors are confident in making the right investment decisions, but only 22% feel very confident about achieving a financially secure retirement. By asset type, Spaniards are slightly more aware of ETF investments (53% vs. the 48% European average), but less likely to invest in them (21% vs. 27%).
Regarding influences, Spanish investors (38%) generally trust social media slightly more (compared to 30% of European investors). Specifically, nearly two-thirds (63%) of people aged 21 to 30 have made an investment decision based on information from an influencer (compared to 32% of investors aged 51 to 60). In this regard, Spanish investors agree that these decisions have proven successful (87% vs. 80% of European investors).
For Guadalupe Barriviera