New research by mobile investing app Dabbl has revealed a surprising lack of investment activity amongst millennials in the UK – threatening the future of innovative British business.
A huge 96% of people aged 25-34 are failing to back businesses, citing the fact the process is too complicated (72%), and something reserved only for the financial elite (62%) as the key reasons why. The team at Dabbl are on a mission to make personal investing simple, accessible and affordable to everyone.
A wealth divide is further backed when considering the socio-economic group of respondents. Of all those surveyed, a considerable 61% of those with an AB social grade have considered investing, compared to just 18%of those in the DE group.
The poll did unveil an eagerness amongst millennials to invest funds in brands, rather than relying on smart banking methods to generate a profit. Half (53%) think this approach would generate a better return than say, for example, opening a cash ISA. Millennial adversity to placing trust in banks is the result of a feeling that brands are a safer investment (24%), bank interests are too low (24%) and their favourite brands are always innovating and evolving (20%).
The sectors millennials are most likely to invest in are:
- Technology brand (e.g. Apple)
- Sports brand (e.g. Nike)
- Drinks brand (e.g. Coca-Cola)
- Food brand (e.g. Walkers)
- Fashion brand (e.g. ASOS)
- Fast food chain (e.g. KFC)
- Social media platform (e.g. Instagram)
- Beauty brand (e.g. MAC)
- Football team
- An app (e.g. Air b’n’b)
However, interestingly, this is not an opinion shared by both genders. Millennial males are nearly twice as likely (69%) than women (35%) to consider investing in their favourite brands. In fact, of all adults surveyed – 54% of men have considered an investment portfolio of any kind, over double the amount of women (25%).
Dabbl believe that investing in shares should be an option available to everyone, not just the financial elite. It doesn’t have to involve large sums of money, and it can be a genuine and stable means of additional income.
Dabbl Co-Founder and CEO, Mark Ackred says: “The findings of this survey revealed the true extent of the lack of confidence, tools and know-how amongst young people in the UK when it comes to investing money. This is something that could have a real impact on the future of British businesses, who rely heavily on investment to grow and develop.”
“The truth is, people with all ranges of income can begin building a portfolio – something that can hold them in good stead for the years to come. It doesn’t have to be a complicated, confusing process – and we are calling upon all people in the UK who have considered dipping their toe in the world of investment to give it a go.”
Dabbl believe that everyone deserves their fair share – they stand for the democratisation of share ownership. The app is available to download now on the Appstore.