What do you do with your money? Is it just sitting in the bank, or are you investing it?
According to a survey by Alpian among mass affluents in Switzerland from June 2021, 18% of the 383 respondents have never invested, yet – that is about one in five.
The study also shows that there are differences between the sexes: Even though there are many reasons why women, in particular, should invest and build up their assets, 25% of women surveyed have never invested. That’s 10% points more than men.
Women vs. men
So why is it that more women seem to shy away from investing than men as the survey suggests?
More than half of the women surveyed (54%) said a lack of knowledge is what they struggle with most when it comes to investing – among men, only 32% cited a lack of knowledge as a barrier.
For men, according to the survey time is more of a barrier. Around 38% of them said they have too little time to properly manage their investments. Among women, only 26% cited time as a bottleneck.
Both genders have in common that they are put off by complicated investment processes and often distrust banks as well.
Millennials vs. older people
When it comes to distrusting banks, however, we find an interesting generational difference.
While Millennials (in this case, 25- to 34-year-olds) named a lack of trust in banks as one major reason that they were struggling with when it comes to investing (38%), for the older generation, ages 35 to 54, this was not so much of an issue. A lack of trust in banks discouraged only 27% of them from investing.
For a generation that felt the impact of the 2008 financial crisis, this lack of trust may not be completely unfounded.
We’ve seen that distrust of banks, complicated processes and structures when it comes to investing, and a lack of knowledge and time are the biggest barriers when it comes to investing and building wealth.
So, what needs to change?
What investors want
Nearly 60% of respondents in Switzerland say that investing would become more important to them if it were easier. Around 38% would like to have an experienced financial advisor at their side, and 36% would like investment options to match their individual wealth goals.
In short, according to Alpian’s survey investors want simplicity, advice and personalization from their bank.
The good news is: With new technologies on the rise, investing might become that simple very soon.
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Alpian will launch its products and services shortly after its banking license enters into full force and will be available to the public in the third quarter of 2022.