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Future of Finance

An invitation to investment

Summary

We are a group of three young women. All finance students of different incomes with different values. We decided to ask ourselves why it is that none of us currently invest when we, more than other young people know the benefits. After some reflection we came to the conclusion that there are a few key factors why this is.

In modern culture it is not often you see investments spoke about in day to day life by 'average' people. It is often seen as something that a certain class or age of person would hold. There is a lack of visibility in investments in regards to youth and after some research we came to the conclusion that this is due to a lack of incentives for young people. Personally we three find the process of actually getting into investing confusing and we know many of our peers who are not interested in the finance sector also feel this way. It is a daunting prospect and as many youth are risk averse as they just do not have the financial means to deal with loss.

One major factor that we feel could incentivise young people to invest could be having the social factor. Trends are a major thing with youth and often there will be a snowball effect once a small number begin to start something then it catches on with more and more people. As we discussed this one thing that we felt was a prominent example of this is social media. Things like twitter and Facebook all became popular from word of mouth. An example of this snowball/ trend effect was the immense popularity of bitcoin. People often heard about bitcoin through social media with people discussing it on platforms where it is easy to reach masses of people. These are the kind of people who would not usually be exposed to this kind of information however, as many heard about the successes of others investing in this they too became interested.

Our team felt like a major benefit could be felt from having a human aspect to investments so it doesn't seem all figures and perplex information that the average person would struggle to get their head around. While conducting research on what is currently available on the market for young investors, we did not encounter anything particularly friendly and inviting. During our search we were only greeted with endless amounts of jargon that did not catch our attention. It was then we came up with the proposal of a social media platform. This platform could contain simplified videos explaining the benefits of investing, the range of investments it is possible for them to invest in and also videos talking about the company and what kind of returns they could get if they choose to invest with your company. This may incentivise younger people to invest as usually when young people are looking to increase their finances for these kind of things, they may only look at savings accounts with high interest.

It is important to convey to the youth that investments are not only for a certain 'kind' or 'age' of person. They are a fantastic idea for anyone who is looking to provide themselves a safety net for the future or make money. Users of the service could make profiles where they could list their interests and how much they are looking to invest and they would have the opportunity to add other people who also had these things in similar. There would be the option for them to message each other back and forward so the service feels more human and tedious.

We want young people to get excited by investing.We felt if they had the opportunity to invite friends to the platform, groups of friends could invest in things together perhaps only putting in £20 each so this hedges risk and takes the cost factor away from some people who may have previously found this a barrier. Users of the service would have the opportunity, to pool funds with their current friends or meet new investors with similar interests through the service.Overall we feel like the main barrier for entry for the youth of today is the jargon and confusing figures associated with investments and the lack of a human side. We feel our idea would combat these issues and hope you will take it into consideration.

Thank-you.

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