Earlier this week, we reviewed important features of finance apps across the investment, banking, money transfer, and money management categories. Today, we’re taking a closer look at investment apps specifically (think Acorns, Betterment, and Robinhood) and how users in different age groups rank app functionalities.
Of the 404 finance app consumers we surveyed, those who reported using investment apps in the last year ranked no stock trading fees as the most important feature out of 22 possibilities.
However, preferences change when you split the sample between age groups. No stock trading fees remains the number one feature for 18-29 year olds but switches to no minimum balance requirements for both the 30-39 and 40-49 cohorts.
Small change micro-investing ranks in the top ten most preferred features of investment apps for 18-29 year olds but ranks second last (21 out of 22) for 30-39 year olds.
Finally, the ability to transfer money from existing portfolios is the 4th most important capability for investment app users aged 40-49, yet ranks 19th for the youngest cohort. Here, we see an opportunity for investment apps to target young HENRY (High Earners Not Yet Rich) consumers, who have yet to make serious investments in their own portfolios and to capture them as lifelong users.
P.S. Investment apps are the least likely type of finance app for consumers to open a debit/credit card with - just 4.6% of consumers surveyed have opened one, compared to 37% who have opened a card with a banking app and 34% with a wealth management app.
