In recent years, a new type of investor has emerged in the market: young adults. These investors are typically tech-savvy individuals who have been exposed to the latest technology from an early age and have incorporated that into their everyday lives. The emergence of this group as a significant investment population is due to many factors, including low interest rates and unemployment rates, among other demographics. Here are 5 ways how technology enable youths to invest during the pandemic.

 

1) Investment Apps and Social Media

Posting about their latest investment decisions on social media helps young adults feel more knowledgeable in the market and encourage friends or family members to follow suit. Most apps are accessible via phones, making it easy for investors to share their portfolios with others through pictures or status updates.

 

2) Mobile Banking

Mobile banking allows investors to check their portfolios at a moment’s notice and even make decisions while on the go. The latest mobile apps include real-time market updates, 24/hr customer service support, and personalized portfolio suggestions from finance experts. In addition, many apps are available for free, making it easy to download and start investing as soon as possible.

 

3) Digital Stock Trading

The emergence of online brokerages has made it easier for investors to invest anywhere as long as they have an internet connection. Online brokers can offer lower commissions and fees than brick-and-mortar ones, making it more affordable for younger adults who may not be working full time yet or do not make a significant income. Many investors also appreciate the mobile-friendly layout of online brokerages, which allows them to perform their research and make investment decisions on the go. Online stock trading has been shown to reduce stress levels among younger adults who may have had a stressful day at work or are anxious about market trends.

 

4) Financial Blogs

Financial blogs are a great way for young adults to learn more about investing and other financial topics. In the past, only investors who were part of industry or finance could access information on these matters due to their high entry barriers. Today, however, several websites offer content targeted towards younger audiences with little experience in the market.

 

5) Matching and Loyalty Programs

Banks or even brokerage firms have started to implement loyalty programs that encourage young investors to invest more. For instance, the bank may match a certain percentage of an investor’s deposit to reach a minimum amount required by the company. This provides additional motivation for younger adults who are just investing to save more for their future.