Millennials and Zoomers took center stage in Australia after young investors adopted innovative products and features offered by emerging investment platforms in the region. According to the 2021 2H Online Investing Report published by Investment Trends, one of the leading financial research firms, the number of online investors increased by almost 21.6% in the second half of 2021, compared to a growth of 66.6% in 2020.
While strong growth was witnessed in the number of new investors and reactivated investors, the dormancy rate soared. However, millennials and Generation Z dominated the new cohort of Aussie investors. The details shared by Investment Trends show that low brokerage fees, access to global markets, and digital offerings were the main drivers behind the recent adoption of online investment platforms among millennials.
“It is encouraging to see online investor numbers continue to climb in the second half of the year, even as social restrictions began to ease,” said Irene Guiamatsia, the Head of Research at Investment Trends. “The growth in Australia was materially higher than rates observed globally, 21% growth compared to 16% growth in the US.”
Australian Financial Ecosystem
Australia is one of the most stable economies around the world. With that, the country is home to some of the world’s leading financial brokerages and digital investment platforms. While overall growth was witnessed in online investment across different financial products, fractional investing has gained significant traction in the past few months.
“The report shows these younger investors have embraced the innovative product and pricing features on many emerging platforms,” noted Guiamatsia. “Features like fractional shares look set to receive a response similar to what we’ve witnessed in the US, being welcomed by three in five Australian online investors aged under 25 (Zoomers).”
With a broad range of financial research services, Investment Trends is serving several brokers and wealth management companies around the world.
