Young Investors Finding Information with Social Media Inspired Financial Tools
Throughout the various economic sectors, Millennials are fostering innovations using technological means. In particular, they are taking a keen interest in social media tools and applications. Furthermore, they are now making huge investments in these fields as well as via the tools that innovation is giving rise to.
Millennials Evolving Investment Methods
Unlike the generation before them, Millennials no longer focus on the conventional means of investment. For instance, if they wish to purchase shares, they don’t head to an investment firm or reach for their phones to call their broker. In today’s world, all Millennials need is access to an internet connection and an app, and with just a few clicks, they can review a prospectus, get the information they need, and make whatever investment they like. According to an article published in the Wall Street Journal, it is estimated that over 30% of Millennials surveyed recently stated that their loyalty lies more with brands that are up-to-date in terms of technology.
New Generation of Investing Tools
One of the most popular social media platforms that is currently being used by Millennials is Tip’d Off. This Bay Area, social investing tool makes it possible for peers to assist one another when it comes to investing in the stock market. Through Tip’d Off, both beginners and veteran investors are able to share valuable information and relevant tips. In addition, it also allows new investors to mimic the actions of other investors who have a proven track record.
Through effective transparency, and a distinctive social layer, Tip’d Off has made it possible for users to create portfolios based on the comprehensive knowledge contributed by peers and veteran traders. In turn, this has allowed newbie investors to become more involved in investment opportunities using a social networking platform, who’s user experience design they are already acquainted with.
Possible drawbacks associated with technology-based investments
One of the main potential drawbacks associated with social media investment is the risk of developing unrealistic expectations for immediate results. In general, most Millennials tend to expect immediate results. They often check their phones more than 40 times a day. In a world of ecommerce and search engines, where information, products, and services are just a swipe or tap away, Millennials can easily fall into the trap of expecting instant success from their investments.
Fast Pace of Social Investing Strategies
To some, investing can seem like a fast-paced or almost video game like experience; however, that is not the case. The truth is that while social media is fast paced, social investing apps like Tip’d Off are intended to make it easier for Millienials to get involved in investing and provide a simple, social method that they are already well acquainted with to ask questions and find answers to their investing questions. As fintech grows and the number of reasons to enter a banking institution continue to fall for young people, things are going to change. Young investors may still need to take notes from the older generation when it comes to patience and making good long-term investments while they harness the power of the new tools they have at their fingertips.