This is an important week. It is Good Money Week – a yearly campaign to raise awareness of sustainable, responsible and ethical finance. In our recent Fintech PR Playbook, we highlighted that the demand for Environmental, Social Governance (ESG) investments has soared. Wealthtechs have an opportunity to give the up-and-coming / DIY investor the means to tailor their investments choices according to personal values.
As we stated previously, the media is continuing to report on topics such as hyper-personalisation and ESG. So for Wealthtechs and other firms, we’ve listed some of our favourite articles that explain the changing investment habits and the shift towards ESG investments.
The always-excellent Economist looks at how millennials are shaping investment habits. For example, younger savers are increasingly happy to use robo-advisers and the 24-39 age bracket is leading the sustainable-investing boom. More than two-thirds of young savers say they are very interested in making a positive social and environmental impact with their investments, compared with about half of the general population.
Investing columnist, Moira O’Neill, notes that the hard months of lockdown have made us focus on what really matters. For some, it’s spurred action on climate change. For others, social issues are top of mind, such as The Black Lives Matter movement which gained huge global momentum this year. Aligning profits to principles is now a hot investment trend, and the movement is not just for the young and “woke”. The older generations are becoming increasingly concerned about not just passing on wealth, but passing on a healthier planet.
Shivaram Rajopal reports for Forbes that, according to PWC, 60% of mutual fund assets in Europe will be ESG related by 2025. This article looks at how the results of the upcoming US presidential election will alter public policy, disclosure issues and ESG investing. For example, a Biden administration is likely to push more greener investments and a carbon tax deal. ESG investing is here to stay… in one form or another.
Polly Harrison highlights the struggles millennials face in navigating the financial world, recessions and high unemployment rates. This generation isn’t investing as much as their older counterparts and are even accused of “killing” wealth management. This piece explores recent advances in wealthtech services which may replace entirely human-managed models with something more automated, customer-centric, and progressive. Fintechs must be prepared for the rise of next-generation robo-advisors.
In this opinion piece, Gael Itier, CEO & Founder at akt.io, highlights how the new COVID-era has influenced consumer behavioural trends and expectations for a seamless digital experience. Itier suggests that banks and fintechs must view the crisis as a chance to innovate and improve how they deliver value to customers.
He says, “While many companies will have to preserve funding, others will increase their investments in emerging technologies, such as AI, automation and blockchain, to make this vision a reality.”
Georgia Eaton, Account Executive, Nelson Bostock – an UNLIMITED agency