The new investor: different information, different behavior
Generation Z investors get their information from social media, follow finfluencers, and invest through apps. In the coming years, this generation will also inherit a large portion of the wealth held by other generations. This requires professionals to understand changing investor behavior and what these clients expect. Here, you’ll learn how to provide careful and honest advice, even when a client would rather hear a tip than a balanced assessment.
In brief
- Generation Z gets its information from social media, follows finfluencers, and invests through apps.
- A large portion of baby boomers’ wealth will be passed on to the next generation in the coming years.
- Finfluencers do not always operate under the same rules as professionals, and behaviors such as following the crowd play a major role in investment decisions.
From influence to responsibility
Finfluencers reach young people with personal, relatable content. However, this content often lacks nuance, which leaves consumers vulnerable. During a roundtable organized by DSI and FFP, finfluencers, financial experts, regulators, researchers, and communications professionals discussed this issue, with representatives from VEB, Nibud, and the AFM, among others, in attendance. The dialogue document outlines the five main themes: reach, duty of care, transparency, supervision, and financial education.
What do the core principles say about the new investor?
A customer who did online research beforehand deserves the same level of care as any other customer. The Core Principles provide guidance for the conversation: listen attentively, correct them when necessary, and honestly tell them what you see—even if that sounds less appealing than the influencer’s tip.
Developments in Investing and Social Media
