October 14, 2020

An Analysis of Morning Consult’s The Rise of Retail Investing In The U.S.

Retail investing is continuously expanding as more Americans start developing an awareness of modern investment platforms. Morning Consult’s The Rise of Retail Investing In The U.S. investigates how consumer behavior during the pandemic has produced a growing interest in investing, and how companies are using this as an opportunity to increase brand awareness and build community around their product lines.

Understand Retail Investors Through Consumer Behavior

One of the most interesting key findings when looking at consumer behavior during the pandemic is higher spending. Even with a decrease in income, more Americans are interested in spending and investing than ever before. Morning Consult explains how Americans with higher incomes are more likely to invest in retail compared to lower income households. However, with a growing interest in investing, it is still significantly less common to have an investment account along with a checking account and savings. The reason for an increase in investing is for proactive purposes such as planning for retirement or making good financial decisions. Lastly, Morning Consult found that between men and women, there is a clear gender divide with both knowledge and interest in retail investing. This causes lower engagement and awareness in the retail investing sector.

Making Investing More Appealing

Retail investors are beginning to step up and draw America’s attention toward creating opportunity by adding investments to their financial future. Morning Consult’s study shows that there is growing interest in retail investing as more Americans are self-motivated to educate themselves in making future investments. When asked to choose between certain traits that would describe their confidence in investing, most Americans would label themselves as simple, amateur and interested. This tells us that companies have the opportunity to develop positive buzz around their industry and product lines in order to appeal more interesting and trustworthy to potential retail investors. Currently, Americans are educating themselves about investing through personal contacts and online sources for foundational information to get started.

Brand Awareness In Retail Investing

Even with a growing interest in investing, Americans are still looking for security and protection when making these financial decisions. Companies are using the power of brand awareness to drive popularity in investment solutions. Morning Consult explains how higher brand awareness is seen with more established investment names such as Fidelity Investments and Robinhood. Americans consider its ease of use, security, cost and user experience when choosing an investment platform. Out of all platforms analyzed by Morning Consult, Robinhood and Acorns come out on top with their modernized interface and easy to follow investment strategies which gain the attraction of younger, higher-income Americans. 

You can download Morning Consult’s full report here.

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