Should Businesses Become More Involved in Investment Apps?
Investing today is a different ball game than it was 20 or even 10 years ago. Though many of the traditional investment strategies remain available, new small fund investments apps are popping up all over the place. Many of these new apps have been credited with bringing younger clientele to the table and encouraging greater personal financial management from an earlier age.
Although there are certainly benefits to these apps from the customer perspective, many corporate giants have been resistant. Their rebukes are often centered on the idea that apps like Robinhood are creating more volatile markets and gamifying serious business investing which could ultimately put hard-earned savings on the line.
Opponents argue that the barriers to accessing traditional financial investment services are so high that many average people could never hope to gain access. These new apps have lowered the entry costs so much that anyone can learn to invest and earn money doing it, even if all they have is $20. In a way, these companies argue, they are democratizing financial investing and making it available for all.
As businesses take these opposing accounts into consideration, the real question is: how should they move forward?
Building the Next Generation
It goes without saying that many of these new investment apps have a target audience. That audience tends to be younger and with fewer financial resources as they are just starting out. But that won’t last forever. Many Millennials and Gen Z’ers are motivated to start investing and are interested in learning how to better manage their finances for retirement.
Many of these investment apps are not perfect (what is, really?) but they do offer opportunities for motivated people to learn. Educating and giving accounting tips to the next generation on financial investment from a younger age can do a lot of good for the businesses that have become involved. For instance, they can see the benefits of engaging with potential customers on all fronts more frequently.
Likewise, learning responsible investment practices and how to best manage investment funds can lead to greater stability and prosperity for everybody involved. As consumers build their wealth through investments, they are afforded greater financial freedom and the ability to make more significant purchases which can, in turn, benefit businesses. Supporting investment apps that help improve financial literacy and give people more financial opportunities is a gift that keeps on giving.
Keep Up With Trends
Beyond simply building greater financial literacy and investment opportunities amongst the larger population, there are more benefits to business. One of the key perks of becoming more involved with investment apps is the ability to keep a finger on the pulse of the markets. Customer preferences are always changing and small fund investment apps can be a great way to help illuminate and keep up with these new trends.
For instance, some of these investment apps are popularizing alternative investments such as cryptocurrency, collectible, or real estate. More young investors are realizing some of the benefits associated with alternative investments and getting involved. But this goes far beyond just alternative investments.
Another example of where companies can gain benefits is by gaining a greater understanding of what average consumers are interested in investing in when given the chance. Are they jumping towards stocks that have a positive climate or social impact? Or are they looking for more technology investments? Becoming more involved with investment apps could help understand some of these latent consumer desires.
Apps are the Future
Perhaps the most significant reason for companies to become more involved in investment apps is simply that apps are the way of the future. There are multiple benefits to businesses taking apps seriously. For one, those that do tend to see a significant increase in sales.
Why the boost in sales? Customers typically feel as though they can become more engaged with brands that they are seeing in their apps. Whether that is because they can invest financially in the company or because they can more easily browse or shop online on the company’s own app, customers feel greater ownership and involvement with the brand. Nearly any marketer can tell you that in today’s world, business success is highly linked to customer engagement and connection.
This goes beyond just engagement though. Companies that become more visible in, say investment apps, are getting their name out there so potential customers are seeing it more frequently. These businesses are building brand recognition with the goal of eventually increasing brand loyalty and remaining competitive.
There is a fair amount of controversy associated with some of the newer small investment apps that are available. However, apps are the way of the future and these too are likely to stick around for some time. Companies that get involved with investment apps are gaining opportunities by helping build financial literacy in their customer base, keeping their fingers on the pulse of upcoming trends, and increasing their exposure and engagement with customers.