The number of investment do-it-yourselfers is growing faster than the number of investors seeking professional help, says a recent report.
The report, by Celent and commissioned by Scivantage, looks at today’s self-directed market and identifies the developments and trends in trading activity and brokerage technology for do-it-yourself investors.
“The wealth management industry has undergone significant operational shifts as a result of changes in financial regulations and the increased role of technology,” said Isabella Fonseca, Celent's research director. “In response to these broader industry trends, retail investors expect a more streamlined, hands-on trading experience, which has led to an increase in the self-directed population of traders.”
According to a report, the self-directed investor segment grew faster in 2014 than the non-self-directed segment, 4.9 percent versus 1.4 percent.
The average profile of the self-directed investor is also expanding to include retirees, women, millennials and baby boomers. As a result of this new demographic, firms are offering more in-depth educational programs and resources to better inform investors of the trading process.
The report, The State of Online Brokerage Platforms, found that social media and mobile platforms are helping to optimize brokerage firms’ connections with this group.
Meanwhile, remote servicing options, such as video and chat, have increased dramatically and are allowing advisors to engage a broader audience.
In addition, mobile trading DARTs (daily average revenue trades) have been steadily increasing since 2012. For last year, 13 percent of all trades placed were on a mobile device, according to the report.
“Retail investment is changing rapidly, and firms will continue to expand with more advanced capabilities and solutions that meet the demands of a dynamic clientele,” said Chris Psaltos, vice president of product management at Scivantage. “Now more than ever, institutions are dedicating resources to digital strategy, and the implementation of a multi-channel platform – supporting mobile, web services and social engagement – is essential for servicing the needs of today’s investors.”