The emergence of new financial communities who use social networks to quickly disseminate financial data are challenging investment banks as a source for market color, trading analysis and investment ideas, according to a recent study.
As a result, the exchange of ideas among Generation Yers is more likely to happen over blog posts, message boards and tweets with communication done increasingly through different mobile devices, according to Mobile Markets: Too Flexible To Fail, a new study released Monday by the TABB Group.
“In a 24/7 connected world, the desktop (PC) is anachronistic,” TABB research analyst Henry Chien said in a statement. “The consumer habits of Gen Y investors are shaping the future of Wall Street and financial firms need to have an IT infrastructure that can adapt to and capitalize on these habits.”
Chien predicts that as investors become more proactive in their appetite for investment research, they’ll seek personalized advice more than ever in today’s volatile market environment.
For IT managers, lower infrastructure costs are fueling the decentralization of the financial advisory business, as more advisors turn independent and use new social channels to communicate.
“For the last decade, transformation was driven by sheer computing power in search of connectivity, efficiency and automation,” Chien said. ”Today, capital markets innovations are becoming more humanistic, building an infrastructure to facilitate a more social, mobile and flexible business environment.”
TABB Group’s survey is based on interviews with financial advisors, hedge funds, asset managers, brokers, data providers and start-up companies.TABB is a financial markets research firm foucsed on capital markets.