IN THE PRESS
February 18, 2021
"It felt like power structures had shifted when retail investors organised themselves on Reddit to collectively buy GameStop shares, forcing the share price to rocket and hedge funds with big bets against the stock to bail out with huge losses. Then, of course, the price plummeted back down to earth.
It seemed inevitable that blood would be spilt on both sides, but whether you think the hedge funds had the last laugh or the retail investors had the first, the bigger, more important, point is that there has been an awakening in the retail investor community. An awakening to the fact that the financial system is stacked against them. An awakening to the fact that they now have the technology at their disposal to self-organise and stand together. An awakening to the fact that there are businesses out there offering individuals new ways to manage their finances that are much better aligned to their needs and values.
Tomorrow’s customers will demand more from their banks
It’s the inter-generational nature of the saga that retail banks should be focused on, because the Reddit army of today are their valuable customers of the future, and they’re turning to unbundled alternatives like the Robinhood trading platform in their droves.
It used to be enough to let loose a stampede of stallions on a beach and tell customers that you’re by their side. However, to win the hearts and minds of today’s customers you have to actually be by their side – offering them the digital experiences that genuinely improve their lives.
The opportunity is significant – according to The Future of Money Management report, only 18% of retail banking customers are actively investing anywhere. But some 78% of retail customers would be interested in receiving investment advice from their bank."
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