How Investing Has Changed Over Generations
From the rise of digital trading to the dominance of fintech apps, the way people invest has transformed dramatically over the past few decades. Each generation has approached wealth-building differently—shaped by technology, access, and mindset. To explore how this shift is influencing investor behavior today, we asked Stirlingshire’s CEO, Steven Woods, to share his perspective on how investing has changed across generations and where it’s headed next
With the explosion of fintech apps, how has access to DIY investing changed financial behavior, particularly among younger generations?
Fintech apps have dramatically changed access to DIY investing, empowering younger generations with tools that were previously unavailable, or reserved for high-net-worth individuals. These apps, including Stirlingshire's, provide real-time insights and low-fee options, encouraging younger users to take control of their financial futures independently. However, without professional guidance, we tend to see a serious risk of overconfidence, which could lead to poor financial decisions. As well, by incorporating gamification strategies, many fintech companies have turned themselves into something that more resembles a casino, in order to optimize their revenue and induce trading.
Looking forward, what major shifts do you foresee in how people manage and talk about their finances in the next 10 or 20 years, especially with ongoing tech advancements and legal changes?
Looking ahead, we'll likely see even more advanced AI and machine learning tools that can predict financial trends, personalize advice to an unprecedented degree, and automate much of the planning process. Financial advisors will likely shift from gatekeepers of knowledge to strategic coaches, helping clients navigate complex financial landscapes within AI platforms. That said, to be successful, I believe consumers should have the power to make informed decisions with the support of both, technology and trusted human advisors. The key going forward will be finding the right balance—leveraging technology to enhance, not replace, the crucial human element of financial planning.
Do you think the rise of fintech and increased access to financial tools have improved financial literacy across generations? If so, how?
To some degree, yes, fintech has contributed to increased financial literacy by providing users with accessible tools that offer not only real-time insights, but also educational options. Explanations of topics like diversification, risk tolerance, and tax-loss harvesting allow users across generations to better understand how different strategies impact their financial outcomes. These tools help consumers better manage their finances, although their effectiveness varies depending on how much users engage with the learning opportunities provided by the platforms. At the end of the day, it's important to remember that humans add value to clients that fintech tools can't; especially during times of heightened personal and market volatility, by helping manage emotional impulses and guiding the decision-making process in a more personal way.