Beginner Investing Shouldn't Be A Gamble
Both 2020 and 2021 have created a new generation of investors: retail investors that are eager for tools, education, and for the potential to “win big”. However, the gamification of the stock market has led to thousands of new investors getting financially (and mentally) stressed, especially as they take their first steps into the foray. As more and even younger people begin their investment journeys, it is paramount that financial institutions focus first on educating and protecting their customers with their offerings, partnerships, and product focus areas. Beginner investing shouldn’t feel like a gamble, and financial institutions should show customers how by providing an empowering gateway into the market.
In 2020 alone, individual investors set a record by opening more than 10 million new brokerage accounts (JMP Securities). Increased Wall Street interest has been reflected online: posts linked to “#StockMarket” have nearly tripled across social media platforms like TikTok, Youtube, Reddit and more. A recent survey found that 41% of 1,500 young investors said that they get investing information from Youtube, and 24% from Tiktok. As a cautionary tale for what can happen, the Gamestop hype, fueled largely by “WallStreetBets” (the popular Reddit channel), created, then destroyed, about $30 billion in on-paper wealth, leaving many new investors cutting their losses– and feeling disheartened in the process.
With all this sudden hype, shouldn’t new investors’ primary source of market education be from trusted, regulated financial institutions– rather than risky, unproven, and unofficial guidance from online chat rooms? New investors shouldn’t have to learn the markets the hard way. Rather, their financial institutions have the opportunity to provide the resources and education new investors want (and need) to make sound investment choices. By teaming up with fintechs that make investing accessible and delightful. Banks can provide this entrypoint to their customers with ease — no confetti (or subsequent legal complications) necessary.
With so many people interested in investing, yet feeling lost in meme stock volatility, financial institutions can leverage this opportunity into a differentiating moment. At Bumped, this is our goal! We partner with financial institutions to offer their users stock rewards as a reward and loyalty mechanism. Stock rewards are an innovative way to reward customers and help them gain a fun and engaging way to enter the market and begin their investing journey. Stock rewards can be used for debit and credit cards, as well as non-card related activities. They provide enduring results for businesses and their customers, while helping financial institutions develop loyalty by giving their users a reward that can both grow in time and safely educate them in how the stock market works.
Beginner investing doesn’t have to be a gamble.
Bumped built the first B2B technology platform with an underlying brokerage focused on ownership — not trading. Our prebuilt set of technology tools, “Graham”, our Suite of APIs, enables institutions to reward their customers in fractional shares of stock. By receiving an accessible, safeguarded, and engaging gateway into the nation’s largest wealth builder, customers in turn form stronger loyalty bonds with the institutions that provided them.
Let’s make the markets easier to navigate for your customers with a reward that matters. Reach out to our team at email@example.com to learn more.