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1、2024 Global Retail Investor OutlookM A R C H 2 0 2 5I N S I G H T R E P O R TIn collaboration with Boston Consulting Group and Robinhood MarketsContents 2025 World Economic Forum.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,including ph

2、otocopying and recording,or by any information storage and retrieval system.Disclaimer This document is published by the World Economic Forum as a contribution to a project,insight area or interaction.The findings,interpretations and conclusions expressed herein are a result of a collaborative proce

3、ss facilitated and endorsed by the World Economic Forum but whose results do not necessarily represent the views of the World Economic Forum,nor the entirety of its Members,Partners or other stakeholders.Images:Getty ImagesForeword 03Executive summary 04Key insights emerging from 2024 retail investo

4、r surveyIntroduction 07Context and research methodologyCurrent state of retail investing 13Retail investing outlook and key trends shaping its developmentNew wave of retail investors 19Understanding the evolving demographics of todays retail investorsMarket cycles and inflation 32Navigating the inve

5、sting landscape in times of financial pressureProduct and platform innovation 41The rise of new tools and platforms transforming retail investingBoom of AI and tech evolution 53How AI and other tech innovations are reshaping retail investing Conclusion 60Appendix 61Contributors 62Endnotes 642024 Glo

6、bal Retail Investor Outlook2ContentsForewordGlobal capital markets have undergone a sustained fundamental shift,increasingly integrating individual investors into the financial ecosystem.This transformation has revolutionized how markets operate,establishing more accessible pathways for individuals

7、to participate in spaces traditionally reserved for institutional and professional investors.The 2024 Global Retail Investor Outlook,conducted in collaboration with Robinhood Markets and Boston Consulting Group,surveyed 13,000 individuals across 13 global markets,including Australia,Brazil,China,Fra

8、nce,Germany,India,Ireland,Japan,Singapore,South Africa,United Arab Emirates,UK and the US.This built upon The Future of Capital Markets:Democratization of Retail Investing paper published by the World Economic Forum in 2022,a survey across nine global markets to better understand the needs of retail

9、 investors.Following the“meme stock”phenomenon in 2021,this insight report sought to assess how well capital markets serve retail participants and how to promote resilient investing across the ecosystem.The findings from the 2022 survey revealed substantial gaps in education,access and trust,prompti

10、ng calls to action for government,regulators and industry.Findings also demonstrated retail investor demand for enhanced access to financial advice,Dean Frankle Managing Director and Partner,Asset and Wealth Management,Boston Consulting GroupStephanie Guild Senior Director,Investment Strategy,Robinh

11、ood MarketsNatalya Guseva Head,Financial Markets and Resilience Initiatives,World Economic Forumalternative investments and robust financial education.Since 2022,the World Economic Forums Global Retail Investing Initiative has conducted deep dives in these areas,with the findings of this report pavi

12、ng the path for deeper explorations of these topics.The financial landscape has continued to evolve since 2022.What was once a domain exclusive to professional and institutional investors has continued to evolve and become more democratized,allowing individuals across the wealth spectrum the opportu

13、nity to see their savings benefit from the broader prosperity of the economy.As changes in demographics,market conditions and technology continue to shift,the challenges and considerations for individuals are evolving;understanding individual investors behaviours,preferences and needs becomes more c

14、rucial than ever.This report represents the collaborative efforts of over 20 partner organizations,including experts from academia,policy-makers and the financial services ecosystem,to provide actionable insights for a more inclusive and sustainable financial future.We extend our gratitude to all wh

15、o have contributed their expertise and shaped the insights presented in this report.Your collaboration has been instrumental in advancing the understanding and empowerment of retail investors worldwide.2024 Global Retail Investor Outlook3ContentsExecutive summaryFor decades,individual activity in ca

16、pital markets was largely through government or employer pensions but today sees a fundamental shift as individuals increasingly take ownership of their financial decisions and futures.This transformation reflects not just a temporary trend borne of a meme stock phenomenon,but a sustained evolution

17、driven by demographic,economic and technological forces.In 2022,the World Economic Forum conducted the first iteration of its survey to examine individuals behaviours,preferences and knowledge of capital markets across nine global markets.The findings revealed both significant interest in markets,dr

18、iven in part by favourable market conditions,and material barriers,including gaps in financial education,access and trust.Page 4This paper explores the ways that investing can be a tool for achieving financial goals by empowering individuals to grow their wealth by participating in capital markets r

19、ather than relying on traditional savings alone.For this to happen,financial institutions,policy-makers and industry stakeholders all have important roles to play to enable access to markets,empower decision-making through education and ensure trust in the financial system as awhole.The 2024 survey,

20、expanded to 13 global markets,built upon the earlier findings and identified four key structural trends driving individuals behaviours today:1 Investors are an increasingly heterogeneous group across generations and geographies;they are keen to learn about markets,engage earlier than the previous ge

21、nerations and are more open to new products and to using technology to learn and invest.The longer time horizon can allow them to weather market fluctuations and benefit from the power of compounding.2 Market volatility has introduced more unpredictability into individuals ability to reach their fin

22、ancial goals and inflationary pressures have eroded both the value of their disposable income and cash savings,opening potential opportunities for capital markets to serve as a hedge.3 Financial products and platforms are evolving with the needs of new customers who care about affordability and tran

23、sparency,use peer and social networks,prefer learning by doing,and tend to make values-driven decisions.4 Artificial intelligence(AI)has the potential to enable access,personalization and efficiency at scale if employed thoughtfully.2024 Global Retail Investor Outlook4ContentsInvestors are becoming

24、increasingly diverse across age,geography,gender and income.They are demonstrating an earlier and heightened interest in capital markets,are eager to explore a broader range of asset classes,and strongly value tech-enabled wealth management journeys.In some parts of the world,younger generations als

25、o stand to inherit and deploy substantial wealth.Between 2021 and 2024,rising inflation drove up the cost of living,leaving consumers with less disposable income and smaller investment budgets,while the erosion of cashs purchasing power attracted others to invest during market rallies.The focus on s

26、horter-term financial goals and market unpredictability,despite its ability to act as an inflation hedge,continues to discourage many from investing.The 2024 Global Retail Investor Survey identifies four structural shifts shaping individual financial behaviours,preferences and market activityPage 5N

27、ew wave of retail investorsMarket cycles and inflationWhat are your financial objectives?2024 vs.2022,investor respondentsHave money for an emergencyHave money for travel and leisureHave enoughmoney to retireHave enough fora large investmentSupplementearningsPay off debt41%51%27%45%48%42%31%29%30%17

28、%9%16%When did you start learning about investing?Investor respondentsIn adolescenceIn early adulthoodWhen I entered workforceYears after entering workforceIn retirement17%8%6%5%41%29%19%16%28%34%29%26%12%27%42%37%2%12%Gen ZMillennialsGen XBaby Boomers20242022Note:This bottom chart displays only a s

29、election of survey options.2024 Global Retail Investor Outlook5ContentsThe 2024 Global Retail Investor Survey identifies four structural shifts shaping individual financial behaviours,preferences and market activityProduct and platform innovationBoom of AI and tech evolutionNew platforms are expandi

30、ng access to investment products,empowering individuals to choose from a range of strategies and instruments at various price points including options that were previously less accessible like alternative assets andfractional shares.By using AI technologies for personalized engagement,financial educ

31、ation and back-office optimization,the financial services industry can potentially offer services more efficiently and affordably.At the same time,responsible AI implementation requires careful consideration of data privacy and bias.How often do you review and adjust your portfolio?Investor responde

32、ntsof investors review and adjust their portfolios at least once a month52%22%every weekof investors hold crypto in emerging countriesInvestor respondentsIn which products areyou currently invested?36%18%vs.27%globallyvs.14%globallyof investors hold derivatives in emerging countries“Id allow an AI b

33、ot to manage my portfolio”All respondentsof respondents would delegate portfolio management to anAI assistant31%41%of Gen Zand Millennial respondents48%of emerging countryrespondents2024 Global Retail Investor Outlook6ContentsIntroduction2024 Global Retail Investor Outlook7ContentsResearch methodolo

34、gySurveyOver 13,000 respondents from 13 countries participated in a quantitative survey aimed at providing insights into evolving retail investing behaviours and market participation preferences.Expert interviewsOne-on-one interviews were conducted with subject matter experts from the financial serv

35、ices industry,the public sector and academia to deep dive into key insights emerging from the research.Global working groups and steering committeesParticipants in working groups included key stakeholders from financial institutions,civil society organizations and academic institutions.These meeting

36、s featured interactive discussions aimed at exploring research data and developing calls to action.This paper aims to answer the following questions:What can policy-makers,industry players and third-party organizations do to further empower retail investors participation?What are the key barriers cu

37、rrently preventing retail investors from participating effectively in capital markets?How can new technologies be responsibly integrated into wealth management offerings to drive better retail participation outcomes?How and why has retail investor activity changed since 2022,and what have been the k

38、ey factors driving this change?Page 8The delivery of this report and its underlying analysis was made possible by the convergence of three key input sources and the continued engagement of an active group ofsubject matter experts.82024 Global Retail Investor OutlookContents2024 Global Retail Investo

39、r Survey demographics1313,0368,8054,231Countries included in the survey:Australia BrazilChinaFrance GermanyIndia Ireland JapanSingaporeSouth Africa United Arab EmiratesUnited Kingdom United Statesrespondents provided insights into their behaviours,preferences and financial situations,including:Finan

40、cial objectivesUse of advisory servicesInterest in new technologiesInvestable assetsretail investors shared information on how and why they invest,including:Access to products and servicesHistory of investingApproach to investment decisions non-investors provided insights into why they are not parti

41、cipating,including:Gaps in access to products and servicesPerception of financial markets and related institutionsInformation sources usedThis survey was designed to explore perceptions and behaviours related to capital markets rather than to measure participation directly.While the sample size is s

42、ubstantial,it is not statistically representative of the entire market and conclusions about overall market participation should not be drawn.To ensure insights diversity,the survey aimed for a balanced mix of approximately 70%investors and 30%non-investors per market,with efforts made to achieve a

43、broad distribution across age groups.92024 Global Retail Investor OutlookContents2024 Global Retail Investor Survey demographicsNumber of participantsIreland1,002US1,003UK1,003Brazil1,003Germany1,001France1,001United Arab Emirates1,001South Africa1,003Japan1,005China1,003India1,001Singapore1,006Aust

44、ralia1,004All respondents were over 18 years of age.The survey was fielded in August 2024.Age distributionGender distribution 18-27(Gen Z)28-43(Millennial)44-59(Gen X)0.5%Other50%Male49.5%Female60+(Baby Boomers)2,2854,2593,4013,091102024 Global Retail Investor Outlook2024 Global Retail Investor Outl

45、ookContentsWhat is a retail investor?$0-100,000$100,000-250,000$1 million-5 million Over$30 million$250,000-1 million$5 million-30 million Broadly defined,a retail investor is an individual with savings invested in capital markets,excluding government-sponsored pension plans.In this survey,individua

46、ls of all wealth tiers were included.For the purpose of the analysis,individuals have been grouped according to their net worth levels,aligned with frameworks generally adopted by global regulatory bodies to categorize accredited investors.Historically lower participation rates,limited access to fin

47、ancial education and professional guidance,and less ability to invest in illiquid assetsFamiliarity with capital marketsAre these investors equipped with the right tools and services to navigate capital markets and/or complex financial concepts,products and strategies?Risk toleranceTo what extent ca

48、n these investors withstand short-or mid-term loss?To which extent are they sensitive to market volatility?Liquidity requirementsDo these individuals constantly require readily available access to their capital,or are they able to invest in longer-term strategies?Access to a financial adviserAre the

49、se investors able to access a financial adviser?Do these investors use a financial adviser and,if so,what is the quality of the guidance received?Historically higher financial market participation,greater reliance on professional advisers and the ability to invest in more complex productsInvestable

50、assets($)The categories are as follows,according to investable assets:Each wealth tier can differ along a broad set of traits,including:Mass marketStocksCrypto-currenciesNFTs and digital assetsComplementary retirement plansLife insurance contractsBondsMutual fundsExchange-traded funds(ETFs)AffluentV

51、ery-high net worthMass market affluentHigh net worth Ultra-high net worthIn this survey,the definition of capital markets investing includes:Page 11An individual who invests via an intermediary is considered a retail investor as well.Retail investors have diverse preferences,goals and financial obje

52、ctives,and may differ in the way they interact with capital markets.An individuals most suitable market engagement model is based on several factors,including but not limited to their investable assets,available liquidity,financial knowledge and objectives,and risk tolerance.Retail investor definiti

53、on2024 Global Retail Investor Outlook11ContentsKey terminologyTermDefinition(as used in this report)Advice gapThe gap between the level of accessible,affordable and suitable financial advisory and wealth management services available and the level needed or desired by individuals.AI chatbot A softwa

54、re application powered by artificial intelligence(AI)designed to simulate human like conversations.AI chatbots use natural language processing(NLP)to understand user questions and generate answers.AI chatbots can recognize,summarize,translate and create content in response to a users query without t

55、he need for human interaction.Financial adviceRecommendations,guidance or expertise provided by professionals to help individuals make informed decisions about managing their finances,achieving financial goals and navigating financial situations.Finfluencer Short for“financial influencer”and refers

56、to an individual who uses social media to share information,recommendations,guidance or opinions on investing,financial news or other related matters.Financial literacy The knowledge and understanding of financial concepts and risks,and the skills,motivation and confidence to apply such knowledge an

57、d understanding to make effective decisions across a range of financial contexts,improve the financial well-being of individuals and society,and enable participation in economic life.Financial well-being A state of being wherein a person can fully meet current and ongoing financial obligations and f

58、eel secure about their financial future.Home country bias A phenomenon where retail investors overweight their home country with respect to a well-diversified international portfolio.TermDefinition(as used in this report)Industry/ecosystemThe investment industry and/or ecosystem refers to the system

59、 of entities that enables financial services professionals and investors to make,hold and manage investments.Entities include investors,platforms(e.g.brokerages and wealth managers),institutional investors,orders execution infrastructure,regulators,and governments and non-governmental organizations(

60、NGOs).Market democratization The increased ability of an individual to access capital markets related to the newfound availability of information,access to investing platforms and financial products overall.Optimal portfolio An optimal portfolio aims to achieve the greatest possible returns with an

61、acceptable level of risk or lowest possible risk while guaranteeing a certain return,suitable to several factors unique to the individual,including but not limited to,level of investable assets,current and projected income,investment horizon,risk tolerance,financial objectives and values alignment.R

62、etail investingRetail investing,as defined in this paper,includes any form of investment activity that involves decision-making by the individual.This includes employer-sponsored defined contribution plans but does not include government pensions.Retail investing includes,but is not limited to:Inves

63、ting via a brokerage,fund company or consumer-facing platform Investing through an adviser,including when the adviser trades on an individuals behalf Investing in self-directed plans(e.g.for retirement or higher education)Retail portfolio The total collection of investments and cash held by an indiv

64、idual,including various asset types(e.g.stocks,bonds,mutual funds,etc.),managed through professional wealth managers or via investment vehicles such as brokerage accounts or retirement funds.2024 Global Retail Investor Outlook12ContentsCurrent state of retail investing12024 Global Retail Investor Ou

65、tlook13ContentsWhat has changed since 2022:changing market conditions,cost-of-living crisis and generational wealth transfersFactors that have affected the general global populationFactors that have affected retail investorsThe wealth gap and socioeconomic inequality widened in both emerging and dev

66、eloped economiesLow-cost brokerage platforms continued to grow in mature markets and expand globallyCOVID-19-pandemic-induced savings and additional free time drove individuals interest in financial markets Global supply chain disruptions caused by the COVID-19 pandemic reshaped consumer markets glo

67、ballyGeopolitical instability severely affected commodity markets and increased overall volatilityCost of living crisis and inflation reduced household savings and investors disposable income and worsened inequality US regional banks crisis undermines savers confidence,creating worries about systemi

68、c riskCentral banks reintroduce interest rate cuts to boost real economy after inflationary periodCollective market power awareness was reinforced by“meme stock”saga and social media activityHigh interest rates boosted fixed deposits adoption,while“crypto winter”curbed digital assets momentumThe gre

69、at wealth transfer is bringing more digitally empowered younger generations to capital marketsStock and crypto markets record-breaking rally is bolstering global retail investors interest2019-20202019-20202019-20202019-20202020-20222020-20222020-20222020-20222022-present2022-present2022-present2022-

70、presentGrowing market uncertaintyMarket conditions set by the COVID-19 pandemicContinued retail investor growth2024 Global Retail Investor Outlook14ContentsGlobal asset under management by channel22014-2021-2030 estimated,$trillions201420212030Retail*Defined contribution35%$58 trillion$96 trillion$1

71、75 trillion31%26%13%61%16%52%20%45%Institutional*2016204060801001201402017Users(millions)2018201920202021202220232024e2025eStock trading annual app users globally12016-2025 estimated,millionsStock trading app annual users compound annual growth rate(CAGR)Globally,2016-2025 estimated20%EstimatedMarke

72、t participation continues to rapidly grow,with global stock app users increasing by 20%annually and retail assets under management estimated to cross to above$100 trillion by 2030Lockdowns and the meme-stock movement sparked a sharp rise in retail investing during the pandemic.Recent global brokerag

73、e platform growth projections suggest that levels will not return to pre-COVID-19 norms.Retail investing has become a lasting trend that is here to stay.Global assets under management attributable to retail investment channels are expected to reach 61%of total by 2030(and generate 67%of sector reven

74、ue).The wealth management industry is shifting from its institution-centred nature to an individual investor-driven market.*“Institutional channels”include defined benefit,insurance,endowments,foundations,sovereign wealth and corporate treasury.*“Retail channels”include retail and private banks,fina

75、ncial advisers,family offices and self-directed.2024 Global Retail Investor Outlook15ContentsCapital market participation(percentage of household assets in stocks,bonds and funds)shows no correlation with GDP(gross domestic product),but structural differences impact retail investing in developed vs.

76、emerging economies.Participation rates differ across geographies,with the US as an outlierUSIndiaIrelandUS investors are 10%more likely on average to find financial products that meet their needs,with approximately 40%using a single provider(vs.approximately 30%on average),signalling a mature and co

77、nsolidated self-directed brokeragemarket.In total,59%of US investors use professional guidance(vs.49%globally).US investors tend to be exposed to financial education earlier(43%ahead of entering workforce vs.34%global average)and are slightly less concerned(approximately 5%)about realizing capital l

78、osses.There has been active growth and interest in capital markets in India;yet,gaps in banking infrastructure such as the 22%of adults who remain unbanked4 limit the full potential of the countrys retail investing landscape.With only 27%of Indian adults currently considered to be financially litera

79、te (roughly half of UK/US figures),increasing access to financial education can be a key opportunity.5There is significant opportunity for wealth accumulation and growth in the Indian stock market,with the benchmark Nifty 50 index doubling from 2019 to 2024 outpacing the S&P 500,Nikkei 225 and Shang

80、hai Composite.6 With expanded access to investing,there is ample potential for successful market participation when paired with ongoing efforts in financial education and investor protection.While approximately 50%of retail investors globally participate in capital markets via self-managed trading a

81、ccounts,only about 40%of Irish respondents do,signalling a nascent direct brokerage sector.Only 16%of Irish respondents feel confident to understand financial markets and in making sound investment decisions,and 40%believe retail investors arent disadvantaged compared with institutional investors(vs

82、.approximately 50%globally).Globally,about one in five investors use tax-advantaged accounts to participate in capital markets,while only 12%of Irish investors do,also due to limited supply-side availability.This market gap becomes particularly acute given higher-than-EU-average capital gains taxati

83、on(33%).7InvestorsInvestorsInvestorsTotal respondentsTotal respondentsTotal respondents(620)(854)(521)(1,003)(1,001)(1,002)Share of household assets invested in securities vs.GDP(gross domestic product)/capita32023 data,GDP in$Percentage of household assets in stocks,bonds and funds20,000BrazilChina

84、JapanFranceUKAustraliaGermanySingapore8%AverageUSIrelandUnited Arab EmiratesSouth AfricaIndia40%30%10%0%40,00060,00080,000100,000GDP per capitaCountry highlights2024 Global Retail Investor Outlook16ContentsHow confident are you about understanding financial markets and making sound investment decisi

85、ons?All respondents(extremely confident and very confident)Gen ZMillennialsGen XBaby Boomers41%40%27%20%I would invest more ifInvestor respondentsI had more opportunities to learn how to investI had more trust in myinvestment platformA financial adviser suggested itI had more free timeFriend or fami

86、lysuggested itI had an AI chatto assist me70%63%63%57%53%42%Why have you decided not to invest in financial markets?Non-investor respondentsDont have enoughmoney to investFearful of losing moneyDont know how to invest/find it confusingNot confident to be able toaccess money upon needDifficulties tru

87、stingfinancial institutionsDont feel I have a fair chance at making moneyDont have timeto invest45%40%28%18%17%13%8%Individuals can be hesitant to start their investing journey due to lack of confidence and awareness of dependable methods tobegin participating in capital markets.Asset misallocation

88、and varying levels of confidence in understanding financial markets can lead to under-performance.In an era of abundant information,it can be difficult to make investing decisions that fit their individual financial goals.High costs,default deposit preferences,and constrained access to professional

89、guidance can lead retail investors away from maximizing participation-related benefits.Despite the rapid growth,a material opportunity to engage individuals in the markets remains as three key challenges continue to persist:non-participation,under-participation and under-performanceNon-participation

90、Under-participationUnder-performanceNote:This chart displays only a selection of survey options.Note:This chart displays only a selection of survey options.2024 Global Retail Investor Outlook17ContentsBy addressing the key challenges to retail investing as the structural growth continues,the entire

91、financial system,not just investors,have the potential to reap material economic benefitsIndividualsFinancial systemPotential benefits Long-term wealth building:Investing can provide a pathway to wealth accumulation and help individuals achieve their financial goals such as buying a home,funding edu

92、cation or leisure,and securing a comfortable retirement.Broader trading pools:Increased individual participation ensures a steady flow of buy and sell orders,creating a more liquid market,especially when institutional investment is low(as demonstrated during the first months of the COVID-19 pandemic

93、).Reduce wealth inequality:Bridge wealth gaps and promote a more equitable distribution of financial resources by building and preserving capital.Market participants diversification:A more diverse pool of investors helps to mitigate reliance on large institutional trading pools,reducing the risk of

94、market manipulation and promoting ongoing price stability.Hedging against inflation and market flux:As stocks tend to historically outpace inflation,investing can help reduce financial risk,smooth out market volatility and preserve long-term purchasing power.Enhanced capital allocation:A large share

95、 of private capital can find its way to the most efficient companies and projects,maximizing resource allocation efficiency while driving economic growth and innovation.Enhanced decision-making:Engaging can empower individuals to make informed day-to-day financial decisions,including in key areas su

96、ch as budgeting,savings and managing debt.Enhanced shareholder engagement:Active and informed retail investors can exert greater influence on corporate governance in the private sector,potentially leading to higher shareholder accountability standards and a longer-term growth focus.Stake in the econ

97、omy:Investing can allow individuals to become part owners of the productive system and society they live in,securing rights to claim a share of their success and prosperity.Wealth creation and public spending mitigation:Retail investing can contribute to overall economic growth while reducing the bu

98、rden on public spending programmes.Page 18+19Potential risksGaps in financial literacy and excessive risk-taking:Gaps in financial knowledge can lead to poor participation choices and increased exposure of individuals to unaware risk-taking or fraudulent investing schemes.Pressure on market infrastr

99、ucture:High trading volumes originated by retail investing activity can put a strain on the operations of key market infrastructure players,such as clearing houses and trading platforms,potentially leading to system disruptions.Inadequate investor protection:In some markets,weak regulatory framework

100、s,along with conflicts of interest at a service provider level,can contribute to lower long-term returns in retail investor portfolios.Price discovery distortion:Retail investors sentiment,especially when driven by short-term trends and narratives,can distort price discovery and lead to market value

101、s that do not reflect underlying fundamentals.Market fluctuations:Volatility systematically promotes worries among retail investors over their portfolio outcomes,with potential“loss trauma”derived from underperforming initial investments,hindering long-term engagement with capital markets.2024 Globa

102、l Retail Investor Outlook18ContentsNew wave of retail investors22024 Global Retail Investor Outlook19ContentsNew wave of retail investorsYounger people,individuals from emerging markets,women and other traditionally underserved groups are participating in capital markets at higher rates and are inte

103、rested in a broader selection of products and more personalized,tech-enabled guidance.Younger individuals engage in capital markets earlier and show greater interest in newer and sophisticated asset classes.Newer generations show greater interest in values-based investing and engage more frequently

104、in shareholder activism practices.58%of Gen Z individuals start learning about investing before entering the workforce compared to.70%of Millennials choose financial institutions based on alignment with their personal values compared to.21%of Baby Boomers.51%of Baby Boomers.New investor segments hav

105、e unique needs.As the great wealth transfer unfolds,a diverse investor base makes personalized offerings essential.Emerging economy investors are growing at a rapid pace,buoyed by technological innovation and thriving domestic growth.For example,India has had over 120 million individuals engage in c

106、apital markets for the first time between 2019 and 2023.8When did you start learning about personal investing?Investor respondentsMillennialsGen XBaby BoomersGen ZIn adolescence/primary schoolIn early adulthood/universityWhen I entered the workforceYears after entering the workforceIn retirement17%8

107、%6%5%41%29%19%16%28%34%29%26%12%27%42%37%2%12%2024 Global Retail Investor Outlook20ContentsEarly participation can unlock key benefits,including a longer compounding window for investments and the ability to weather market cyclesYounger individuals start participating earlier in capital markets,with

108、 36%of Gen Z prior to entering the workforce compared to 8%of Baby Boomers.They are also more confident about their decision-making,with 48%reporting confidence around their ability to understand financial terminology,vs.36%ofGen X and 24%of Baby Boomers).Employer-sponsored schemes are recognized as

109、 an excellent starting point for an individuals investment journey,as they provide a platform for initiating frequent contributions while often including access to unbiased guidance.CASE STUDY 1Young investor-targeted financial education journeys in India In India,fintech companies such as StockGro

110、are transforming the financial literacy space by offering Millennial-/Gen Z-targeted learning journeys that address the gaps in available financial education programmes.By providing features such as virtual investing training environments,in-platform social chats,bite-sized learning content and key

111、opinion leaders vetting,StockGro is actively supporting the upbringing of a new generation of young investors in India,while aiming to protect them from unreliable information sources andonlinemisinformation.Investor respondentsAll respondentsof Gen Z and Millennial investors had parents with invest

112、ment accounts,compared to 34%of Gen X and 22%of Baby Boomer investors.of Gen Z and Millennials feel confident about their ability to understand financial markets and make sound investment decisions,compared with 27%of Gen X and 20%of Boomers.of Gen Z and Millennials invest in international markets c

113、ompared with approximately 35%of Gen X and Baby Boomers,denoting a milder“home country bias”.50%40%45%2%MillennialsGen XBaby BoomersGen ZIn adolescenceIn early adulthoodWhen I entered workforceYears after entering workforceIn retirement6%2%1%2%30%15%9%6%36%37%27%24%22%43%58%51%13%Approximately 23%of

114、 Gen Z and Millennials invest through an employer-provided schemeWhen did you start investing?Investor respondents2024 Global Retail Investor Outlook21ContentsWhat products do you currently invest in?Investor respondentsMillennialsGen XBaby BoomersGen ZCryptoAlternativesDerivativesNFT35%38%23%8%22%2

115、0%13%8%20%17%12%7%18%16%7%4%As Gen Z and Millennials invest more in complex products such as alternative asset classes(covering more than one-third of the portfolio for 74%of Gen Z investors)and crypto(covering at least one-third of the portfolio for 62%of Millennial investors),addressing gaps in fi

116、nancial education becomes increasingly important,especially for matching portfolio allocation with their optimal risk-return profiles.Young investors show strong interest in capital markets and greater openness to newer asset classesOpenness to products Portfolio allocation strategyHow much do you h

117、ave invested in these products?Investor respondentsMore than half of portfolioAround one-third of portfolioLess than one-third of portfolioLess than a quarter of portfolioGen Z37%41%17%31%42%21%7%35%36%20%9%5%31%41%21%27%40%26%7%26%36%25%13%7%MillennialsGen X24%40%23%19%43%26%12%18%28%28%26%12%Baby

118、BoomersStocks29%32%22%23%33%26%18%14%21%27%37%16%ETFs/mutual fundsCryptoStocksETFs/mutual fundsCryptoStocksETFs/mutual fundsCryptoStocksETFs/mutual fundsCryptoGen X and Baby Boomer investor portfolios tend to show greater diversification levels.This can be due to their higher financial literacy leve

119、ls or their preference for lower levels of overall risk.92024 Global Retail Investor Outlook22ContentsGen Z and Millennials prioritize portfolio values alignment significantly more than Gen X and Baby Boomers doDo you consider the environmental and social impact of a product or company before you in

120、vest in it?Investor respondentsMillennialsGen XBaby BoomersGen ZAlmost neverRarelySometimesFairly oftenAlmost always5%6%10%14%21%18%24%25%18%21%28%33%42%40%30%21%13%15%8%6%In the past 40 years,the social and environmental impact of investments has become a significant consideration.Many investors ar

121、e curious about incorporating environmental,social and governance(ESG)factors into their investment decisions.ESG considerations generally include pollution,natural resources,human capital,product liability,stakeholder opposition,corporate governance and corporate behaviours.10Growing interest in va

122、lues-based investing In total,66%of Gen Z and 70%of Millennial investors stated that it was an important factor for a financial institution to be aligned with personal beliefs and values.ESG-focused mutual and exchange-traded funds attracted an estimated$10.4 billion in new investor assets during Q3

123、 2024.11Challenges in values-based investing Several anti-ESG policies in the US have created a more complex environment for values-based investing.12 Limited access to reliable and consistent ESG data remains a challenge when it comes to investments in smaller companies or emerging markets.Investor

124、 uncertainty can arise from unclear or ambiguous ESG distinctions,such as with traditional energy companies transitioning to clean energy.Wealth managers need to systematically find a challenging balance between portfolio returns and fiduciary responsibilities around investor ESG expectations.Recent

125、 sector shake-up In Europe,74 sustainable funds were closed or merged in Q3 2024,contributing to a total of 250 closures and mergers from Q1 to Q3.On top of this,113 funds dropped ESG terms in 2024.In the US,12 sustainable funds were liquidated in Q32024.132024 Global Retail Investor Outlook23Conten

126、tsHave you ever participated in any of the following activities related to your investments?Investor respondentsEngaged with shareholder activism campaignsVoted on company proposals via proxy votingResearched voting rights associated with specific stock ownershipBaby Boomers9%50%41%Gen X18%49%33%Mil

127、lennials32%45%23%Gen Z38%43%20%Baby Boomers31%47%22%Baby Boomers15%50%35%Gen X24%47%29%Millennials37%43%20%Gen Z42%41%18%Gen X26%49%25%Millennials32%47%20%Gen Z38%42%20%Engaged in itAware but not engaged in itUnawareInterest in playing an active role in shaping corporate actions is higher among youn

128、ger generations of retail investorsCurrent corporate actions landscapeAsset managers are expanding retail investor participation in corporate voting,but high information acquisition costs still hinder informed decision-making for both retail and institutional investors.Corporate actions like dividen

129、ds,stock splits and reorganizations often suffer from inefficient communication and standardization.Technology can improve information sharing and enhance investor engagement.Growing interest in shareholder activismGen Z and Millennial investors show greater interest in corporate actions than previo

130、us generations.Modernizing the corporate action landscape requires collaboration across stakeholders to improve transparency and engagement.Employing technology for communication can enhance information dissemination,particularly for retail investors during announcements.CASE STUDY 2Improving invest

131、or information acquisition on corporate actions BetaNXT is enhancing adviser-investor transparency by ensuring seamless access to corporate actions that impact holdings and strategy.Such an augmented information exchange environment has boosted participation and improved investors ability to predict

132、 returns and achieve successful outcomes.By modernizing corporate action processes reducing manual errors,automating workflows and providing a centralized data platform BetaNXT is helping to build investor confidence and streamline decision-making in capital markets.2024 Global Retail Investor Outlo

133、ok24Contents$124 trillionin wealth currently held by Baby Boomers and older generations is expected to be transferred by 2048.14Baby Boomers and Gen X investors tend to prefer people-first service models,whereas Gen Z/Millennials place greater importance on intuitive and tech-enabled wealth manageme

134、nt journeys.Overall,77%of Millennials vs.57%of Baby Boomers investors identified a good user experience as a key factor for choosing a financial institution.Wealth management offerings need to match the unique needs and preferences of investorsPage 26Millennials and Gen ZMark the services you useInv

135、estor respondentsFinancial adviserAI chatbotTax adviserBudgeting applicationFinancial coachRobo-adviserGen Z and MillennialsGen X and Baby Boomers56%75%36%15%33%23%32%17%31%17%19%11%2024 Global Retail Investor Outlook25Contents60%of the UKs wealth is held by women in 2025 and only 7%of financial ser

136、vice providers have women-focused commercial strategies.15Women show unique investing preferences,with a greater focus on capital protection objectives,longer-term planning horizons and less comfort with loss.Approximately 70%of women change financial service providers within the first year of becom

137、ing widows.16In total,68%of women in the US are actively saving towards retirement.17 Women now control about one-third and$14 trillion of total US household assets and$4.92 trillion in Western Europe.18Wealth management offerings need to match the unique needs and preferences of investorsPage 27Wom

138、enHow do you view the potential for loss in investments?All respondentsIm ok with loss in the short termI find losses concerningbut continue investingI am uncomfortable withshort/long-term lossFemaleMale40%51%24%22%25%38%2024 Global Retail Investor Outlook26Contents2.1 billionpeople aged 60 or older

139、 are expected to make up the global population by 2050,doubling from current numbers.19Driven by shorter investment horizons and increased financial vulnerability(especially due to gaps in pensions),Baby Boomers and Gen X approach capital markets with unique expectations.Gen X and Baby Boomers prior

140、itize offerings that focus on wealth transfer,succession and long-term planning for a healthy and financially stable retirement.Wealth management offerings need to match the unique needs and preferences of investorsWhat are your financial objectives?All respondentsHave enough moneyfor emergencyHave

141、enough money for travel and leisureHave enoughmoney to retireHave enough moneyfor a large investmentGen Z and MillennialsGen X and Baby Boomers46%59%39%47%36%15%36%44%53%Gen X35%Baby BoomersPage 28 Baby Boomers and Gen XNote:This chart displays only a selection of survey options.2024 Global Retail I

142、nvestor Outlook27ContentsYounger investors and those from emerging economies use a wider variety of information sources,including peer networks and social mediaYounger individuals and investors from emerging economies show higher interest in peer networks as a potential source of information.In tota

143、l,37%of Gen Z and Millennial investors turn to friends and/or family for guidance on how to invest,while 23%seek advice on social media.Social media and online peer networks provide relatability,especially for those historically excluded from capital markets.Only 23%of Gen Z and 30%of Millennial inv

144、estors learn how to invest through financial advisers,while 35%and 36%,respectively,learn from friends and family.Concerns about social media and peer networks often focus on the accuracy of information.As with other types of social media content,sponsored posts and influencers may have financial in

145、centives to promote certain products.Regulators have begun to explore disclosure requirements for finfluencers.Integrating financial education into university and graduate programmes and lower and secondary school curricula can provide an unbiased platform for the development of foundational financi

146、al knowledge.Widespread inclusion of financial education in schooling can help establish a universal baseline of financial literacy.Research shows that financial education in schools positively impacts individuals ability to manage personal finances,including debt management,long-term wealth plannin

147、g and retirement investing.20 A total of 24%of Gen Z and 19%of Millennial investors learned how to invest in university or graduate studies,and 16%of Gen Z and 13%of Millennials learned how to invest in secondary or lower school,however significant gaps in financial literacy persist,with over 60%of

148、young adults worldwide(under 35 years old)still not meeting financial literacy standards.2169%70%55%of Gen Z and Millennials ranked recommendations from a friend or family member as important vs.40%of Gen X and 25%of Baby Boomers.How important are the following factors when choosing a financial inst

149、itution for investment purposes?Investor respondentsPlease select the importance of each choice at the timeyou learned how to invest.Investor respondents57%of emerging market investors found social media important when learning to invest,compared to 43%in developed markets.of emerging market investo

150、rs found(financial)education in university or graduate studies important when learning how to invest,compared to 57%in developed markets.57%of Gen Z and Millennials ranked recommendations from social media or online communities as important vs.37%of Gen X and 20%of Baby Boomers.of emerging market in

151、vestors found robo-advisers important when learning to invest,compared to 52%in developed markets.2024 Global Retail Investor Outlook28ContentsSpotlight on emerging economiesTraditionally institution-led,the United Arab Emirates is seeing rapid retail investor growth,driven by policies promoting lon

152、g-term domestic investment.Growing financial education interest and social medias influence highlight the need for better information stewardship.The survey demonstrates that United Arab Emirates investors remain focused on short-term goals like emergency savings and leisure spending.41%of United Ar

153、ab Emirates investors are focused on emergency savings,28%on having enough money for leisure or travel.54%of United Arab Emirates respondents have parents who owned an investment account,vs.the 39%global average.73%of United Arab Emirates investors review and adjust their portfolios at least once a

154、month vs.the 52%global average.InvestorsTotal respondents7901,001ChinaWith over 219 million adults in capital markets and 60-90%of daily trading from individuals,Chinese retail participation is rising.Investors favour money-market funds,insurance and savings accounts,especially amid volatility.22,23

155、 Slower economic growth and market uncertainty are driving a shift from equities to safer,lower-yield investments.6.85 million brokerage accounts opened in October 2024 in China.2438%of Chinese investors not invested in equities cite product unpredictability as the key reason.47%of individual respon

156、dents in China are worried about outliving their savings.InvestorsTotal respondents8221,00373%35%50%Growing interest in emerging economiesof respondents from emerging economies use a financial adviser,financial planning or financial coaching service vs.28%in developed countries.of investors from eme

157、rging economies find investing fun vs.51%in developed countries.of investors from emerging economies have engaged with shareholder activism campaigns vs.17%in developed countries.United Arab EmiratesCountry highlights2024 Global Retail Investor Outlook29ContentsSpotlight on emerging economiesBrazilB

158、razilians have traditionally favoured savings and fixed-income investments,but demographic shifts and fintech innovation(e.g.Open Finance)are driving more to capital markets.Equity investors grew from 500,000 to 5 million from 2019 to 2022.While the average investor is a 32-year-old male,diversity i

159、s increasing,with female participation quadrupling from 2018 to 2020.Brazil has 1.5 million active individual investors in ETFs and 12.7 million in fixed-income funds.2560%of Brazilian respondents are willing to share personal data with financial institutions vs.47%in developed countries.40%of retai

160、l investors in Brazil use a budgeting application vs.27%global average.InvestorsTotal respondents675(1,003)CASE STUDY 3Brazils“Open Finance”as a means for digital financial inclusion As fintech users shift investing and saving online,market authorities must ensure data-sharing protocols evolve while

161、 prioritizing investor value.With 51 billion application programming interface(API)calls in 2023 and a broader scope than traditional open banking,Brazils Open Finance is now the worlds largest data deregulation initiative.It empowers users,drives fintech growth and expands access to financial produ

162、cts.26Country highlights2024 Global Retail Investor Outlook30ContentsCalls to action:new wave of retail investorsPage 32+41+52+59Policy-makers and governmentsEnsure adequate investor protection through regulatory frameworks that safeguard individuals while ensuring emerging segments of retail invest

163、ors have access to financial products that align with their risk-return profiles.Drive financial inclusion in emerging economies by designing and promoting equitable open banking protocols to boost capital market access and unlock local financial system innovation potential.Page 32+41+52+59Tradition

164、al financial institutionsDevelop tailored financial offerings catering to the unique product and service needs originated by the“great wealth transfer”and by the recent growth of new market participant categories such as young,emerging-market and female investors.Proactively address the emerging nee

165、ds of older investors as they gradually move from the accumulation to decumulation phase,remaining mindful of the impact that ageing population trends are having on individual financial resilience.Fintech and other tech companiesBuild on growing retail investing momentum in emerging economies via cr

166、oss-country public-private collaboration aimed at promoting the adoption of mature market-derived best practices(regulatory,operational,etc.).Design younger investor-focused wealth management platforms that explicitly address the increased desire to engage in shareholder activism actions for example

167、,by integrating and hosting seamless proxy voting tools.Exchanges and infrastructure playersSystematically enforce and steward peak margin rules on risky and/or illiquid financial products now accessible and increasing in popularity with non-institutional investors.Implement systems enabling real-ti

168、me and transparent information flow around corporate actions,allowing retail investors to stay informed and make timely investment decisions.(Other)private sector and NGOsRecognize the growing interest of new generations in capital markets and encourage the introduction of financial education module

169、s in schools,tapping into the key role of teachers as gatekeepers.Advocate for policies and initiatives that ensure that financial advisory services are inclusive,offering tailored support for emerging groups such as younger investors and women,and increase awareness of possible bias within offering

170、s.Traditional media and social media playersPromote accessible,short-form content on topics including financial education and financial well-being through social media channels to increase engagement with new waves of investors.2024 Global Retail Investor Outlook31ContentsMarket cycles and inflation

171、32024 Global Retail Investor Outlook32ContentsMarket cycles and inflationThe inflationary period from 2021 to 2024 reduced disposable income and eroded the value of non-invested savings,shifting focus towards short-term financial goals.On the other hand,recent stock price rallies and higher interest

172、 rates have spurred investment activity.Return uncertainty concerns investors,but staying invested through inflation and volatility is key for long-term growth.One in five investors avoid most asset classes due to unpredictability,and over one in three non-investors dont participate because of fear

173、of potential losses.Many investors are prioritizing short-term financial needs over long-term investment goals.Over 50%of retail investors are saving for emergencies and fewer than one in three Gen Z respondents are investing to build wealth in retirement.Personal debt has become more of a concern t

174、o retail investors across several geographies.The relative importance of“paying off debt”as a key financial goal for respondents nearly doubled to 16%from 9%in 2022.Global respondents showed greater optimism in meeting financial goals:Why have you decided not to invest in financial markets?2024 vs.2

175、022 investorsDont have enoughmoney to investFearful of losing moneyDont know how to investNot confident Ill be ableto access my moneyupon needI dont feel I have a fairchance of makingmoney in the marketDont find investmentproviders credibleDont have time to investCaveat:Two options were added in 202

176、4,allowing respondents to selectup to four options(vs.three in 2022).36%46%54%39%40%28%30%17%21%12%11%8%12%7%2024202286%of global survey respondents reported being able to meet daily needs,while.78%stated that they can secure their financial future.2024 Global Retail Investor Outlook33ContentsMarket

177、 unpredictability and needs for liquidity can make it challenging for investors to find investment allocation strategies optimized for their personal financial needsInvestors are hesitant to invest across major asset classes due to concerns about the unpredictability of returns e.g.stocks(32%),crypt

178、o(30%),forex(30%),commodities(28%)highlighting a broader worry about uncertain market outcomes.of non-investors do not participate in capital markets due to concerns of losing money.of non-investors are uncomfortable with loss in the short or long term.Why have you decided not to invest in this prod

179、uct?Investor respondents across all products tested40%67%18%Dont understand itToo unpredictableDoes not align withmy financial objectivesDont trustthis productDont knowhow to access it26%21%21%15%12%of non-investors do not participate in capital markets due to concerns about not being able to access

180、 their money when needed.CASE STUDY 4Innovative product design to guide through volatile markets Buffered ETFs offer a pre-determined return range over a set“outcome period”and can shield retail investors from much-feared market volatility swings.With a staggering 85%compound annual growth rate(CAGR

181、)over the 20202024 period,there are now roughly 330 buffer ETFs available for purchase collectively gathering over$50 billion in assets under management.28While higher-than-average fees and the need to comply with a pre-agreed holding period to reap full contract benefits are still limiting adoption

182、,buffer ETFs have been among the fastest growing classes of ETFs over recent years.Investor support for navigating market volatility Seamless access to professional advice in times of market instability can be a key stabilizer of retail investor behaviour.63%of investors would invest more ifafinanci

183、al adviser/coach recommended it.Page 35 Contextual guidance during market volatility can boost retail investor confidence.In-app nudges or timely support can proactively address short-term loss concerns.15%greater likelihood of choosing dividend-reinvesting products when educated contextually in app

184、27 2024 Global Retail Investor Outlook34ContentsCost-of-living crisis linked to steep inflationary cycles elevates pressure on everyday financial expensesIncreases in costs of living linked to inflation put pressure on everyday household expenses,rather than long-term wealth accumulation targets(e.g

185、.saving for retirement).of renters in the US are cost-burdened(spending more than 30%on housing costs),34 and 9%of those in EU spend more than 40%on housing costs an increase from 2021.35of individuals state having enough money for an emergency as a key financial objective,and 43%indicate“saving for

186、 leisure/travel”as as a key financial objective.of individuals expect to achieve their financial objectives within five years;approximately one out of four respondents within a year.50%60%50%Individuals often align their saving and investment choices to short-term goals,adopting time horizons that a

187、re not always conducive to building long-term financial well-being.Policy and product design can help guide investors towards success.Policy and product design features can help retail investors align with long-term goals by building confidence and encouraging stable strategies.Frequent contribution

188、s,capital protection and volatility hedges help build investor confidence by ensuring more stable and predictable returns.44%of investors would feel more confident investing with more return guarantees.Tax advantages and employer-backed financial wellness programmes can encourage long-term investing

189、 by making participation more accessible and financially beneficial for employees.40%of non-investors would consider investing more if they received tax incentives.68%of employees opt into financial wellness plans when offered by their employer.29Structured investment programmes from an early age an

190、d well-designed retirement plans support long-term wealth accumulation and financial security.Approximately 75%coverage for OECD countries with quasi/mandatory pension plans.30 Optional contributions to super-annuation schemeAustralias superannuation pension plans register(on average)70%higher than

191、mandatory contribution rates,with investors taking advantage of optional contribution tools offered(e.g.concessional,spouse).31 NISA incentivized investment schemesAround 20 million NISA accounts have been opened,with capital gains tax exemptions on contributions encouraging market participation and

192、 long-term investing,reducing reliance on state pensions amid Japans ageing population.32Auto-enrolment for pension gap challengesAuto-enrolment in the UK has led to pension coverage rate jump from 45%to 80%,yet 40%of the population is still expected to be unable to appropriately substitute income u

193、ponretirement.332024 Global Retail Investor Outlook35ContentsPersonal debt is becoming an increasingly central financial worryWhat are your financial objectives?Investor respondents20242022Have enough for emergencyHave enough for leisure/travelHave enough to retireHave enough for large investmentTo

194、pay off debtPersonal fulfilment41%51%27%48%42%31%29%9%16%14%45%12%Implications of rising debtHigher incidence of debt on household finances can constrain disposable income due to debt servicing,reducing overall investing budget.Household debt repayment commitments can skew individuals preferences to

195、wards more liquid and low-risk assets.Significant leverage increases household exposure to interest rate swings and market cycles,especially for mortgages and credit card borrowing.Familiarity with debt,combined with constrained investing budgets,can incentivize the use of leverage,potentially ampli

196、fying momentum trading tendencies and the associated risks.36,37 More individuals around the world are prioritizing paying off debtReduction in real income,coupled with easier access to lending services and consumer credit,could be key drivers behind the growing focus on debt repayment among individ

197、uals.The growth of(relative)personal debt levels has been significant among certain emerging economies for instance,household debt in Thailand recently hit a record high at 90.8%of the countrys GDP.38Note:This chart displays only a selection of survey options.2024 Global Retail Investor Outlook36Con

198、tentsCredit card debt8%5%Personal loansMortgagesAuto loansConsumer creditStudent loansMedical debtPayday loansWhat form of outstanding debts do you currently have?All respondents24%18%17%14%10%6%5%4%of survey respondents have a form of outstanding debt54%Mass MarketAffluentHigh net worth+To what ext

199、ent do you agree with the statement,“I struggle to meet my debts or liabilities”?All respondents,by wealth band*37%19%21%High household debt levels put pressure on short-term financial objectives and create a need for holistic wealth planning mindsetsWith over half of respondents managing household

200、liabilities,holistic financial strategies that integrate debt repayment with investing and saving are critical,especially given the prevalence of long-term loans and mortgages.Even wealthy individuals struggle with debt.About one in five affluent or high-net-worth investors worry about meeting liabi

201、lities,highlighting the need for wealth managers to balance liquidity,capital preservation and growth.*Wealth bands split:mass market=$0-100,000,affluent=$100,000-1 million,high net worth+=over$1 million.2024 Global Retail Investor Outlook37ContentsPerceived financial well-being varies across geogra

202、phies,with higher confidence levels encountered in emerging economiesIm able to meet my daily financial needsIm worried about outliving my savingsI could handle a major unexpected expense I struggle to meet my debts and liabilitiesDeveloping countries show greater confidence towards meeting daily ne

203、eds,while Japan has lowest perceived financial confidence,potentially linked to recent inflation and real wages struggling to keep up.39Concerns about outliving savings stem from low savings rates(e.g.14%in South Africa)or increased future planning awareness,as seen in Singapore,where 62%of Millenni

204、als save for retirement.40,41Ability to handle a major unexpected expense is a key indicator of an individuals financial resilience.Rising debt in emerging middle-class households makes liability management crucial,especially in India,where many young people face unsustainable commitments.Developed

205、countriesEmerging economiesIndiaChinaSingaporeUKBrazilGermany AustraliaUSIrelandJapanFranceUnitedArab EmiratesSouthAfrica95%94%93%92%91%89%89%86%85%85%78%73%67%SingaporeSouthAfricaUnitedArabEmiratesChinaGermanyIndiaAustraliaUSBrazilJapanIrelandUKFrance56%53%48%47%45%45%44%44%43%42%39%38%23%FranceChi

206、naIndiaUnitedArabEmiratesUKSingaporeGermany AustraliaUSIrelandJapanBrazilSouthAfrica89%86%81%73%72%71%71%70%68%62%62%57%55%IndiaUnitedArabEmiratesSouthAfricaUSSingaporeIrelandAustraliaBrazilChinaUKGermanyFranceJapan48%51%40%38%36%35%34%31%24%22%21%19%15%2024 Global Retail Investor Outlook38ContentsI

207、m confident Im able to meet this goalAll respondentsInvestorNon-InvestorTo have for leisure and travelTo build wealth for myself/my descendantsTo“beat the market”To have enough money for a large investmentTo have in case of an emergencyTo pay off debtTo supplement my earningsTo have enough money to

208、retire77%55%76%55%74%54%73%48%45%72%69%69%47%44%66%38%Im confident Im able to meet this goal2022 vs.2024 respondents20222024To have for leisure and travelTo build wealth for myself/my descendantsTo“beat the market”To have enough money for a large investmentTo have in case of an emergencyTo pay off d

209、ebtTo supplement my earningsTo have enough money to retire89%85%87%84%83%83%88%82%87%80%82%78%86%78%79%77%On average,investors show approximately 25 percentage points higher confidence in reaching their financial goals than non-investors do.Differences in perceived confidence may stem from financial

210、 literacy,budgeting,debt control andholistic wealth planning.Inflation cycles have influenced retail investors,increasing focus on short-term needs and tempering confidence in long-term stability.Investors tend to exhibit more confidence at achieving their long-term financial goals than non-investor

211、s,although overall confidence has declinedPage 40 Investor vs.non-investor*2024 reported averages in the right hand chart are higher than in previously shown charts due to adjustments made to allow time-series comparability.Countries sample for comparison was adapted to match 2022s survey dataset,i.

212、e.excluding Ireland,South Africa,Singapore,Australia;*Given move from a four-level Likert scale in 2022(i.e.“not at all confident”,“slightly confident”,“moderately confident”,“extremely confident”)to a five-level Likert scale in 2024(i.e.“not confident”,“somewhat confident”,“neutral”,“confident”,“ve

213、ry confident”),half of 2024“neutral”responses were allocated to the top two count(i.e.percentage of“confident”and“very confident”)to enable results comparability.Page 40 2022 vs.20242024 Global Retail Investor Outlook39ContentsCalls to action:market cycles and inflationPage 32+41+52+59Policy-makers

214、and governmentsProactively address pension gap challenges by expanding auto-enrolment measures and promoting the distribution of effective complementary contribution schemes.Enhance disclosure-focused regulations on financial product distribution with frameworks that encourage proactive investor eng

215、agement and guidance across different life cycle phases(selection,holding,divestment).Page 32+41+52+59Traditional financial institutionsDesign and create offering of products and services purposely designed to mitigate retail investors volatility concerns and hesitation to stay invested over the lon

216、g term.Enhance transparency and communication on debt offerings,and offer flexible products and proactive assistance,such as adaptable repayment plans and fee reductions.Fintech and other tech companiesCreate affordable and scalable financial advice solutions that meet the needs of new retail invest

217、ors,ensuring that women,younger individuals and those from emerging markets can access quality guidance.Build intuitive and holistic wealth platforms that provide retail investors with a comprehensive view of their portfolio,enabling them to make more informed decisions and track their progress over

218、 time.Exchanges and infrastructure playersEnsure the responsible design of leverage trading services at a market intermediary level in order to mitigate risks coming from rising debt levels among vulnerable retail investors.Encourage collaborative information-sharing to reduce inefficiencies in disc

219、onnected service ecosystems and support the delivery of data-driven,context-aware investor solutions.(Other)private sector and NGOsPartner with educational institutions and employers to offer financial literacy programmes that are aligned with the needs of retail investors,particularly those from un

220、derserved demographics,also supporting them in navigating market turmoil.Encourage proactive retirement planning via employer-employee relationship.Traditional media and social media playersSystematically enable and underpin financial education dissemination campaigns addressing key investing litera

221、cy topics such as retirement planning and debt management.Promote trust in the financial system through the orchestration of collaborative public-private awareness-building campaigns,employing both traditional and new media channels.2024 Global Retail Investor Outlook40ContentsProduct and platform i

222、nnovation42024 Global Retail Investor Outlook41ContentsProduct and platform innovationTrading platforms and innovative wealth management solutions have lowered the entry barriers to capital markets while providing access to more sophisticated investing strategies and products.Platform requirements e

223、xpectations can differ depending on investor type.Approximately one out of two investors participate via a trading account,and wealthier investors often prefer more advanced analytics.Low-fee trading has expanded market access,but limited awareness and understanding still curtail investment in some

224、assets.Perceived unpredictability as a reason for avoiding a product rose from 13%in 2022 to 21%in 2024 for investors.Behavioural biases can lead to suboptimal asset allocations and financial decision-making.52%of investors review and adjust their portfolios at least once a month and only.41%are act

225、ively invested in international markets,compared to.84%currently holding their own country-issued financial products.Overall,35%of investors choose an information source for investment decisions because it is free.“Learning by doing”and“educational resources from financial institutions”were indicate

226、d as the most important education channels.How do you invest in the market?Investor respondents52%37%18%18%16%9%Through a trading account where I pick my own investmentsThrough a professional adviser or wealth managerThrough a product or scheme provided by my employerThrough a tax-advantaged account

227、Through an education savings productThrough a robo-adviser2024 Global Retail Investor Outlook42ContentsMass market investors typically have lower levels of financial education,limited budget,value liquidity and easy cash access.Their investments are self-directed or through employer plans,relying on

228、 peer recommendations.45%of non-investors are not investing due to feeling they dont have enough money to do so.47%of mass market individuals see“online community suggestions”as a key platform choice driver.Potential industry tools and innovationsSuitable products such as remunerated deposits,fund-b

229、ased saving plans,model portfoliosGoal-setting interface and education tools,possibly delivered via“nudges”and intuitive user experiencesUser support coverage,automated notification system and social interaction platforms(e.g.forums)Retail market participants differ widely in prioritized financial o

230、bjectives,product preferences and suitability of investing strategiesPercentage of investors struggling to find products that match their risk preferencesMass marketAffluentHigh net worth+15%9%2%*Wealth bands split:mass market=$0-100,000,affluent=$100,000-1 million,high net worth+=over$1 millionPage

231、 44 Mass market*2024 Global Retail Investor Outlook43ContentsAffluent investors historically have more financial knowledge,with the potential use of professional support to guide investment decisions,and a larger investment budget and values liquidity.30%higher likelihood to invest in international

232、markets than mass market investors30%higher likelihood to use an adviser than mass market investorsPotential industry tools and innovationsBroader product range for advanced discretionary and self-directed needsInteractive portfolio simulation with customizable optionsHybrid support with escalation

233、to personalized professional adviceRetail market participants differ widely in prioritized financial objectives,product preferences and suitability of investing strategies30%39%47%Percentage of investors who find products matching their risk preferences through a financial adviserMass marketAffluent

234、High net worth+*Wealth bands split:mass market=$0-100,000,affluent=$100,000-1 million,high net worth+=over$1 millionPage 45 Affluent*2024 Global Retail Investor Outlook44ContentsRetail market participants differ widely in prioritized financial objectives,product preferences and suitability of invest

235、ing strategies30%34%17%10%Percentage of investors who stated they are“uncomfortable with loss in the short or long term”Mass marketAffluentHigh net worth+High-net-worth investors typically have higher financial literacy levels,often consulting advisers for portfolio allocation.Their larger budgets a

236、nd complex strategies increase openness to illiquid assets.84%of high-net-worth investors rate availability of suitable products as key drivers behind investing platform selection.50%higher likelihood to be currently investing in alternative assets than mass market investors.Potential industry tools

237、 and innovationsAccess to advanced investment solutions and alternative marketsUnified wealth view with advanced self-service analyticsPremium digital and in-person wealth planning with tailored insights*Wealth bands split:mass market=$0-100,000,affluent=$100,000-1 million,high net worth+=over$1 mil

238、lionPage 46 High net worth+*2024 Global Retail Investor Outlook45ContentsFrom investment to divestment,each decision has an impact on overall portfolio performance and presents an opportunity to design products and education interventions customized to investor segment and goalsPage 47 Selection pha

239、sePage 47 Portfolio management Divestment phaseIndividuals are often drawn to products theyre familiar with,especially stocks that are popular in the media or among peers(e.g.NVIDIA,Tesla).84%of investors are invested in local markets,while only 44%invest internationally.Retail portfolios can have h

240、igher market risk exposure due to diversification approaches(e.g.equal split across assets,holding one asset class or stock).Among investors who hold mutual funds or ETFs,36%allocate less than a third of their portfolios to these assets.In contrast,59%of cryptocurrency asset holders invest more than

241、 a third oftheir portfolios in crypto.Frequent portfolio adjustments and excessive trading can contribute to lower returns due to higher fees,taxes and possible poor timing of market moves.22%of investor respondents review and adjust their portfolios at least every week(more than 50%at least once a

242、month).Retail investors tend to over-rely on past performance when choosing financial products for their portfolios.Approximately 60%of investors consider past performance as a key benchmark when investing in mutual funds.42Retail investors can hold excessive savings in cash throughout their investi

243、ng life cycle,potentially limiting returns while increasing exposure to capital erosion.430 billion excess savings in cash among UK citizens,with 13 million adults missing out on investing returns.44Investors tend to sell winning positions too quickly while holding on to losing ones for too long,oft

244、en following market trends with expectations they will continue.49%of respondents see the“ability to stay calm and rational in market fluctuations”as key to successful investing.Unclear investment fees and assumed trust in advisers and products can reduce individuals overall investment returns.An ap

245、proximately 50 basis point standard deviation in fees was registered among nearly identical S&P 500 index funds offered by different asset managers.43Newer investors tend to consider dividends as risk-free gains,which may in turn encourage biased asset-allocation preferences.Approximately 39%of reta

246、il investors plan to turn their portfolios into disposable income by choosing dividend-paying stocks.Overwhelming information and social influence can lead retail investors towards investments that may not align with their long-term investment goals or risk-return profiles.37%of mass market investor

247、s do not feel confident about their ability to understand financial content(vs.13%high net worth+).Potential under-performance drivers2024 Global Retail Investor Outlook46ContentsFrom investment to divestment,each decision has an impact on overall portfolio performance and presents an opportunity to

248、 design products and education interventions customized to investor segment and goalsCASE STUDY 5Product design guidelines to optimize retail decision-making To enhance product suitability for retail investors,Australias market authority,the Australian Securities and Investments Commission(ASIC),int

249、roduced the Design and Distribution Obligations(DDO)framework in 2021.This regulation governs asset management across all product life cycle phases,requiring clear target market disclosures,strict marketing standards,and ongoing distribution oversight.The DDO sets a high standard for proactive inves

250、tor protection,complemented by ASICs restrictions on high-risk products like binary options.CASE STUDY 6Investor protection with a focus on performanceInvestor protection measures help mitigate risks from financial literacy gaps and complex products.The European Securities and Markets Authoritys(ESM

251、A)2023-2028 strategy includes disclosure duties,suitability standards,cooling-off periods and leverage caps.While limiting access curbs speculation,ESMAs European long-term investment fund(ELTIF)2.0 shows that moderated access to private markets can support balancedportfolios.2024 Global Retail Inve

252、stor Outlook47ContentsWhile accessibility is becoming less of a concern across key asset classes,unpredictability worries are on the rise,along with perceived product understanding29%24%40%30%39%29%13%10%16%14%15%14%Low-fee trading platforms and tech-enabled wealth managers have helped reduce access

253、ibility concerns across asset classes in the past two years.About one in six investors do not hold mutual funds or ETFs often suitable for newer retail investors despite their availability on most low-fee brokerage and wealth management platforms.Greater access to financial information has increased

254、 familiarity with major asset classes,but concerns around source reliability reveal gaps in understanding.Surveyed individuals reported less understanding of traditionally low-risk assets like ETFs and bonds but felt more familiar with complex assets like crypto.“I dont feel like I understand this p

255、roduct well enough to invest in it”“I dont know where to access this product”StocksBondsETFs and mutual fundsCryptoStocksBondsETFs and mutual fundsCrypto20242022Why have you decided not to invest this product?2024 vs.2022 investors StocksBondsETFs and mutual fundsCryptoStocksBondsETFs and mutual fun

256、dsCrypto39%32%17%17%2024 Global Retail Investor Outlook48Contents“The product does not align with my investment objectives”13%18%18%24%18%21%19%30%9%21%7%18%20242022Bonds showed the biggest change in alignment with investment objectives,coinciding with rapid interest rate hikes across the board.Affl

257、uent and high-net-worth investors are about 40%more likely than mass-market investors to avoid bonds,given their investment objectives.While only 10%of high-net-worth investors find potential losses concerning,this rises to 34%among for mass market affluent investors,highlighting a link between weal

258、th and tolerance for risk and uncertainty.Similar numbers of respondents found stocks and cryptocurrencies too unpredictable,with stocks seeing the biggest shift in perceived volatility.Why have you decided not to invest this product?2024 vs.2022 investors 20242022Why have you decided not to invest

259、this product?2024 vs.2022 investors StocksBondsETFs and mutual fundsCryptoStocksBondsETFs and mutual fundsCrypto24%30%15%32%“This product is too unpredictable for me”“The product does not align with my investment objectives”While accessibility is becoming less of a concern across key asset classes,u

260、npredictability worries are on the rise,along with perceived product understanding2024 Global Retail Investor Outlook49ContentsRetail investors often prefer free,easily accessible information sources.Pairing these with timely,context-specific advice from financial institutions aligns well with their

261、 preference for self-directed learning.Access to accurate,unbiased information is key to their success.30%of developed country respondents are confident about the credibility of the financial information sources they use,compared to approximately 60%in emerging economies.of all respondents believe t

262、hat“understanding financial concepts”is key to successful investing,and 47%say“keeping informed via financial news”is key for investing success.46%Retail investors naturally gravitate towards self-directed learning models and easily accessible information sources when it comes to financial education

263、 Primary information sources Secondary influence Contextual informationHabits and preferencesE.g.traditional media,blogs,seminars and e-learning platforms,television,radio 49%of investors choose sources based on ease of access and clarity ofunderstanding.40%of respondents are confident about informa

264、tion credibility.38%of respondents opt for free sources.E.g.friends and family,social media,online communities,investment professionals One out of three Gen Z/Millennial investors use social media to find information for investing.63%of investors would invest more if a financial adviser recommended

265、it.E.g.gamified in-app user experiences,nudges,market alerts,newsfeeds 42%of investors learn how to invest“by doing”and 36%through financial institution-provided content.36%of investors prefer receiving information through platforms they already use for other purposes,such as news or social media.Ke

266、y frictions and risks Financial product materials can often include confusing jargon,requiring high financial literacy levels.Some sources can include misleading or unreliable information.Information from one-time sources can be forgotten,so regular updates and timely reminders are helpful for inves

267、tment decisions.Content provided from finfluencers can vary in objectivity and clarity.Peer networks can shape how market events are perceived,potentially leading to ineffective investment decisions.Incentives between investors and intermediaries can be misaligned (e.g.financial advisers,brokers).Wh

268、ile gamification has benefits,it can also encourage behaviours like increased trading or higher risk-taking than suitable.Volatile market news can create uncertainty and anxiety about holdings,sometimes leading to suboptimal buying or selling decisions.2024 Global Retail Investor Outlook50ContentsRe

269、tail investors naturally gravitate towards self-directed learning models and easily accessible information sources when it comes to financial educationCASE STUDY 7Interactive investor platforms to curb information asymmetry Since 2010,interactive investor platforms(IIPs)have enabled millions of dire

270、ct exchanges between retail investors and Chinese public companies,reducing information costs.Studies show these platforms enhance price informativeness,liquidity and investor participation,improving return predictions and investment outcomes.45CASE STUDY 8Fee comparison to improve transparency Laun

271、ched in 2011 by ASIC,MoneySmart is a trusted personal finance platform used by 50%of Australian adults.46 It offers free financial guidance,interactive fee comparisons for managed funds/ETFs,and personalized return assessments using real-time market data.2024 Global Retail Investor Outlook51Contents

272、Calls to action:product and platform innovationPage 32+41+52+59Policy-makers and governmentsStrengthen transparency and disclosure standards in wealth management to reduce the burden on retail investors.Encourage disclosure-focused regulatory measures at the point of initial investment,with framewor

273、ks that enable unbiased guidance from financial institutions throughout the entire investment life cycle.Page 32+41+52+59Traditional financial institutionsDesign financial products suitable for retail investors,including tax-incentivized plans,and capital-protected options and expand product offerin

274、gs of private market products for some investors.Implement best practices,like fee-only models and advisory-asset management separation,to mitigate conflicts of interest and support private market access for retail investors.Fintech and other tech companiesOffer unbiased,contextual guidance through

275、just-in-time nudges during key“teachable moments”and in-platform education tools aimed at optimizing individual behaviours along investment life cycles.Offer consistent support for retail investors by integrating in-platform social features that enable peer-to-peer communication and facilitate posit

276、ive network effects.Exchanges and infrastructure playersEncourage collaborative data-sharing among financial ecosystem stakeholders to strengthen infrastructure resilience and proactively address potential instability from retail investoractivity.Facilitate direct communication between retail invest

277、ors and listed companies through interactive platforms to reduce information asymmetry and associated transaction costs.(Other)private sector and NGOsDesign,enforce and maintain labelling frameworks to seamlessly signal beginner-friendly products to retail investors,reducing information processing c

278、osts and ensuring adequate guidance during first(crucial)portfolio decisions.Promote unbiased,third-party-owned platforms aggregating,standardizing and comparing market information with the goal to accurately inform individual decision-making throughout investing life cycles,for example,by supportin

279、g fund fees benchmarking.Traditional media and social media playersCollaborate with financial institutions to provide easily digestible and engaging financial content across widely used digital media platforms.Encourage institutions to endorse and vet publicly available financial content,helping ret

280、ail investors identify reliable and trustworthy information more easily.2024 Global Retail Investor Outlook52ContentsBoom of AI and tech evolution52024 Global Retail Investor Outlook53ContentsBoom of AI and tech evolutionAI can support scaling affordable financial advice,enable automated personalize

281、d portfolio creation,expand financial education programmes and underpin the delivery of tailored nudges to encourage behaviours optimized for ones financial goals.Core trendsAI can make financial information acquisition more efficient and support tailored retail portfolio construction.In total,28%of

282、 investors already turn to an AI chatbot for guidance on how to invest and 16%use one specifically to find products that match their risk-return profile.Financial education programmes can become more engaging,personalized and accessible using AI.A total of 13%of investors have used an AI-powered cha

283、tbot to learn about investing,compared to 18%who have relied on university courses or graduate studies.Wealth managers and investing platform providers can use AI to expand the reach of their offerings while unlocking key operational efficiencies.Increasing adoption of AI solutions by retail investi

284、ng service providers introduces possible concerns and risks.I would allow an AI assistant to manage my investmentsAll respondentsGen Z41%Millennials41%Gen X29%Baby Boomers14%41%of investors are willing to trust AI-enabled chatbots with their personal financial information;however,concerns remain abo

285、ut the data security and bias in AI systems.2024 Global Retail Investor Outlook54ContentsAI-enabled tools can mitigate some of individuals biggest concerns around investing in financial marketsAI to aid financial information acquisition and processingMany of the obstacles to investing arise from the

286、 complexity of financial information,with 54%of non-investors stating they do not feel confident in their ability to understand financial terminology or supporting materials.AI has the potential to address this by providing information tailored to individuals through interactive tools which can feel

287、 more personalized and engaging,than fixed or stagnant information sources.AI-enabled investment strategy personalization and ongoing guidanceAI-enabled investment platforms and chatbots can potentially mitigate concerns around unpredictability and liquidity by offering personalized investment strat

288、egies catered to individuals goals,risk tolerance and time horizons.This can often be provided at a lower cost than traditional adviser-intermediated services.AI tools can help create cost-effective portfolios while potentially reducing the operational burden on traditional intermediaries.13%I would

289、 trust AI with my financial informationAll respondentWhy have you decided not to invest in financial markets?Non-investor respondentsI dont know how to invest or find investing too confusingIm fearful of losing money investing in the marketI dont feel I have a fair chance of making money in the mark

290、etEmerging economiesDeveloped countriesIndia62%UnitedArabEmirates56%China53%SouthAfrica42%Brazil40%Singapore35%US29%France25%UK22%Germany21%Ireland20%Australia20%Japan13%40%28%2024 Global Retail Investor Outlook55ContentsAI solutions can support the design and delivery of personalized and interactiv

291、e financial education journeysRespondents who selected AI chatbotHow did you learn how to invest?Investor respondentsSingaporeUSFranceUKGermanyIrelandAustraliaJapanDevelopedEmergingIndia25%UnitedArabEmirates20%China20%SouthAfrica14%Brazil10%Educationalresourcesfrom financialinstitutions29%45%Friends

292、,family orcolleagues32%37%Financialadviser25%35%Traditionalmediaresources28%29%Socialmedia15%34%Externaleducationcourses15%31%Robo-adviseror Digital-adviser7%17%Learningby doing40%43%AI Chatbot8%18%Educationin lower orsecondaryschool9%13%Educationin universityor graduatestudies15%21%Emerging economi

293、esDeveloped countries11%9%5%7%8%8%8%6%Making investment decisionsIn total,77%of investors reported that an easy-to-understand investment product or strategy is essential when making portfolio allocation decisions,and lack of understanding is the top reason behind investors opting out of investing in

294、 key asset classes(e.g.for bonds,derivatives ETFs and mutual funds).AI chatbot-facilitated investing journeys28%of investors use AI chatbots to gather financial decision-making guidance.Among Gen Z and Millennial respondents,approximately 24%stated that access to an AI chatbot assistant provided by

295、a financial institution would increase trust towards that institution.2024 Global Retail Investor Outlook56ContentsIn markets with nascent individual market participation,there is growing appetite for AI assistants to support financial decision-makingMore than 50%of investors in India,China and the

296、United Arab Emirates are open to the idea of delegating portfolio allocation decision-making to AI-enabled assistants.In emerging economies,limited historical access to financial advisory services has created a gap that AI tools are helping to fill with accessible,cost-effective guidance.This positi

297、ons emerging economies to“leapfrog”technologically,making their investors likely early adopters of AI-driven wealth management solutions,potentially advancing financial inclusion.Openness to AI portfolio managers was especially observed among younger respondents in these geographies,with approximate

298、ly 50%of Gen Z and Millennial investors willing to allow an AI assistant to manage their assets compared to 33%Baby Boomers.Potential AI applications in financial advisoryI would allow an AI assistant to manage my investmentsInvestor respondentsDeveloped countriesEmerging economiesIndia58%China55%Un

299、itedArabEmirates54%SouthAfrica38%Singapore35%Brazil34%US28%France22%Australia20%Ireland18%UK18%Germany17%Japan14%Client services supportAutomation of real-time,personalized support to both alleviate relationship management tasks performed daily by advisers and increase load factorCASE STUDY 9Increas

300、ing managed portfolios affordability and personalization with AIInvestCloud uses AI-enabled features to increase personalization by streamlining adviser workflows,proactively identifying opportunities to increase returns in an individuals portfolio and creating aggregated views of assets under manag

301、ement.As demonstrated by InvestCloud,AI can become the conduit for personalized,efficient and scalable wealth management services while also mitigating human bias in financial decision-making.Process automationBack-and middle-office processes automation allowing advisers to focus on strategy and ind

302、ividual-adviser relationships(e.g.risk management,compliance)Personalized financial plansSystematic analysis of individuals data,automating creation of customized financial plans with continuous refinement based on evolving circumstancesCustom portfolios and educationAutomated generation of tailored

303、 portfolio recommendations and contextual offering of personalized financial education journeysMarket analysis and enhanced decision-makingMulti-source data aggregation seamlessly providing actionable market insights to inform financial advisers courses of action2024 Global Retail Investor Outlook57

304、ContentsAI can revolutionize financial services by enhancing accessibility,but its bias and accuracy risks must be addressedLarge language models(LLMs)are trained on historical financial data that may lack sufficient representation of underserved populations.This can lead to biases in AI systems,lim

305、iting access to financial services for marginalized groups.47To mitigate AI bias,it is key to ensure rigorous data hygiene,diverse training datasets and due diligence.Given AIs tendency to“hallucinate”and generate inaccuracies,especially in financial advisory,awareness of these limitations is crucia

306、l.48Integrating AI into financial processes faces challenges in scalability,data governance and securityAs AI matures,scalability challenges demand robust infrastructure to support a growing user base.Data governance is crucial for ensuring database hygiene,and so is establishing clear use and prote

307、ction guidelines.Safeguarding proprietary financial data prevents breaches and protects sensitive information.49 In total,49%of investor respondents find that barring the ability to access a personal wealth adviser,advanced security features and data protection are key to establishing trust in a fin

308、ancial institution.There are concerns about unintentional personal data disclosures by both retail investors using AI tools and financial institutions managing sensitive information.The ability to trace and reproduce AI-generated results remains a critical technical challenge as tools are embedded i

309、nto processes like risk management and marketoperations.50Incorporating AI solutions to accelerate capital markets democratization comes with inherent complexitiesCASE STUDY 10Mitigating AI bias and shortcomingsThe European and Securities Market Authority(ESMA)has the goal of systematically ensuring

310、 transparency,responsible governance and individual investor protection,requiring financial institutions to disclose AI use in investment decisions per MiFID II.ESMA stresses the importance of accurate data to train AI models,and advocates for continuous financial staff training on AIs operational a

311、nd regulatory implications.It also requires stress testing and quality assurance checks for AI tools.51By doing this,ESMA plans to mitigate AI-linked risks,such as algorithm bias,sensitive data breaches and lack of outcomes explainability.CASE STUDY 11AI to support open banking and lessen system fra

312、gmentationLaunched by the Reserve Bank of India in 2016,the Account Aggregator(AA)network streamlines data sharing among financial institutions to reduce fragmentation and expand banking access,including lending and investments.While AA only facilitates encrypted data transfers,its design supports k

313、ey AI applications,from natural language processing(NLP)-and optical character recognition(OCR)-driven data extraction to ML-powered credit scoring and fraud detection,driving Indias open finance ecosystem.42%18%of current investors would invest more if they had an AI chatbot assisting them.of non-i

314、nvestors would consider investing more if they had an AI chatbot assisting them.2024 Global Retail Investor Outlook58ContentsCalls to action:boom of AI and tech evolutionPage 32+41+52+59Policy-makers and governmentsEnsure AI regulations in financial services offer clear oversight of technology provi

315、ders,while encouraging their support for financial institutions in areas such as compliance,monitoring and due diligence on AI tools.Standardize data hygiene practices when training AI tools for financial services,designing and enforcing guidelines aimed at ensuring clean,accurate and bias-free algo

316、rithm outputs.Page 32+41+52+59Traditional financial institutionsScale affordable personalized advisory services by employing AI to deliver tailored investment strategy suggestions directly to individuals and/or“next-best-action”recommendations to relationship managers(service model democratization).

317、Implement wealth management efficiency tools using AI to streamline key back-,middle-and front-office processes such as risk management,compliance reporting and customer engagement.Fintech and other tech companiesOffer interactive AI-powered chatbots to make financial education more accessible and e

318、ngaging for younger generations of retail investors.Use retail investors behavioural data to create adaptive wealth management platforms that evolve based on user preferences,habits and needs.Exchanges and infrastructure playersPromote collaborative financial infrastructure data-sharing protocols to

319、 facilitate retail investor servicing and seamless delivery of high-potential AI-powered use cases for example,by providing a basis for algorithm training.Design safe and resilient architectures at a financial infrastructure level,ensuring compatibility with innovative AI-intermediated market intera

320、ction models adopted by retail investors.(Other)private sector and NGOsPartner with governments and institutions to promote financial literacy initiatives powered by AI,systematically tailored to diverse demographics and emerging categories of retail investors.Actively advocate for the widespread ad

321、option of ethical AI practices by promoting cross-industry collaboration and alignment on related transparency and fairness standards.Traditional media and social media playersApply AI to enable at-scale financial content personalization,ensuring systematic relevancy and understandability across div

322、erse categories of individuals.Combat misinformation by using AI to automatically flag and clarify misleading financial content that can be found online(while also promoting transparency through clear labelling of AI-generated posts).2024 Global Retail Investor Outlook59ContentsConclusionHowever,as

323、this report shows,this is not a foregone conclusion,and each stakeholder in the capital markets value chain has a role to play in reimagining and creating a future where capital markets will benefit individuals and grow societal prosperity.In addition,this report will continue to serve as a baromete

324、r for investor sentiment,preferences and behaviours to better inform decision makers,building biannual insights into this dynamic andgrowingecosystem.As retail participation continues to grow and take on an increasingly large share of global assets under management,it has the potential to enable wea

325、lth creation and financial resilience for populations across the globe,many of whom have been excluded or underserved by capital markets historically.Significantly,it is not just individuals who stand to benefit from this increased access,as financial institutions,pension systems and entire economie

326、s can reap the gains of individuals engagement with the markets.2024 Global Retail Investor Outlook60ContentsAppendix:Data segmentation,investorsDeveloped countries*Emerging markets*Countryn per countryInvestors per countryNon-investorsAustralia1,004604400France1,001596405Germany1,001601400Ireland1,

327、002521481Japan1,005602403Singapore1,006819187UK1,003600403US1,003620383Total8,0254,9633,062Countryn per countryInvestors per countryNon-investorsBrazil1,003675328China1,003822181India1,001854147South Africa1,003701302United Arab Emirates1,001790211Total5,0113,8421,169Survey question to determine inv

328、estor vs.non-investor:Do you currently have savings invested in financial markets(e.g.in stocks,bonds,mutual funds,ETFs,cryptocurrencies,etc.)?Note,this may include investments via a retirement account or a life insurance contract.Investors age distribution n=8,805 Non-investors age distribution n=4

329、,321 Gender distribution n=13,036 18-27(Gen Z)1,5323,1332,3131,82728-43(Millennial)44-59(Gen X)60+(Baby Boomers)18-27(Gen Z)28-43(Millennial)44-59(Gen X)60+(Baby Boomers)MaleFemaleOther7534,8143,9542,44937311,7511,1261,0881,264InvestorNon-investor*The classification of developed vs.emerging markets

330、is based on MSCI criteria,which consider factors such as economic development,market liquidity and financial market accessibility.2024 Global Retail Investor Outlook61ContentsContributorsLead authorsWorld Economic ForumNatalya Guseva Head,Financial Markets and Resilience InitiativesHallie Spear Spec

331、ialist,Capital Markets and Resilience InitiativesBoston Consulting GroupEdoardo Bizzarri Project Leader,Financial Institutions Practice Area Core MemberDean Frankle Managing Director and Partner,Asset and Wealth Management,Boston Consulting GroupWorking Group and Steering CommitteeAlvi Abuaf Industr

332、y Partner,Motive PartnersBoon-Hiong Chan Head,Market Advocacy;Securities Applied Innovation,Deutsche BankJames Connell Vice-President,Strategy&Business DevelopmentStephen Daffron Co-founder and Industry Partner,Motive PartnersEd deHaan Professor of Accounting,Stanford UniversityJessica Douieb Managi

333、ng Director;Head,Wealth Partners,JP MorganJessica Endlich President and Co-Founder,NextGen Personal FinanceAndreas Hackethal Professor of Finance,Goethe-University,FrankurtChloe Barz Director,International Government and External Affairs,Robinhood Markets Matthew Blake Head,Centre for Financial and Monetary Systems,World Economic ForumKaren Goldfeder External Affairs and Community Senior Strategis