03 August 2023 |

SoFi’s Midyear Report: A Peek Into Investor Mindset


Whether you’re building a B2C, B2B, or B2B2C fintech company, keeping a finger on the pulse of consumer and investor behavior is advantageous. 

It’s your secret weapon that allows you to craft solutions and experiences that fit customers like a glove while giving you an understanding of their reactions to change. Insights can also help develop innovative products and ideas and craft messages that make investors take notice. 

Plus, understanding the language of consumer culture and sentiment gives you an edge over competitors, as it’s the same language spoken by people all over the world. 

In short, having your finger on the pulse of consumer and investor behavior is a powerful tool. So when SoFi dropped their first-ever Midyear Investor Report, I had to dig into the insights. 

Let’s dive in!

Feeling the Pressure: Investors Falling Behind

You know that feeling when you’re trying to become an adult, but life keeps throwing curveballs? Well, most investors can relate, as the report reveals that many of them feel they’re falling behind in their ideal investment game plan. 

Millennials may get a bad rap for being late to the investment party, but the real worry-warts are Gen X’ers. They’re carrying the biggest concerns about not being as far along in their investing journey as they’d like, which makes sense given that they’ve been at the investing game longer. 

What’s more important to note is that there’s no one-size-fits-all “magic number” for an investor’s portfolio. Each person’s financial journey is unique.

Still, the report hints that everyone, regardless of age, could benefit from some goal-setting magic to make those financial independence dreams a reality.

Economic Rollercoaster: Recession Fears vs. Optimism

We’re navigating the turbulent waters of 2023, and with all the rampant inflation going on, it’s no surprise that two-thirds of investors think we’re already knee-deep in a recession. 

But there’s a silver lining, as 72% of investors are optimisticabout the markets despite these recession fears.

In fact, 57% feel pretty good about investing right now. The main concern isn’t about playing it safe but ensuring they invest enough during these rollercoaster times.

To me, that signals an educational opportunity for fintech companies to step in. Investors want to do more to build their wealth, they just want help from technology to get there. 

We’re all just trying to secure our financial seats and hands inside the vehicle.

Where’s the Money Going?

Alright, let’s talk about where the money’s at! Despite all the competing hype cycles, many savvy money-savants are sticking to their portfolios’ good ol’ reliable building blocks: equities

The top five places investors are stashing their cash include cryptocurrency, mutual funds, bonds, and exchange-traded funds (ETFs).

Investors nowadays are giving a thumbs-up to income-focused investments  (54%) over growth ones (46%)

It’s like they’re saying, “Hey, let’s get that money working for us now!” Gen Z and Millennials are leading the pack here, beating out Gen X and Boomers when prioritizing income over growth.

Investment Gossip: The Tea on Chatter

Investing has been the hottest gossip topic since Netflix dropped its latest series.

57% of investors chat about their investment choices with friends and family. But here’s the twist – the chit-chat levels depend on age. Gen Z and Millennials are all about spilling the beans (64% and 60%, respectively), while Boomers are more like, “Nah, let’s keep it hush-hush” (43%).

Before you blame social media for all the chaos, investing talk might’ve started right at home. 60% of Gen Z’ers say they discussed investing while growing up. 

Parents – way to go. 

Robots vs. Humans: The Battle Rages On

We must talk about the age-old battle of robo-advisors vs. traditional financial advisors. The report shows that 39% of investors are on Team Robo, while 46% prefer to roll with a professional CFP or CFA. 

But here’s the critical piecerepresentation matters! A whopping 70% of investors say they’d be more likely to work with an advisor if they saw themselves mirrored on the other side of the table. 

This is especially true of younger investors, where 78% of Gen Z’ers and 75% of Millennials reported being more likely to work with an advisor in this circumstance.

So, financial advisors, it’s long overdue to step up and prioritize diversity.

AI: The Newest Investment BFF?

AI is creeping into the investment world too. Around a quarter of investors say they’d love to give AI a shot for investing – they think it’ll make things easier.

But hey, not everyone’s ready to jump on the AI bandwagon just yet. 

Almost one-fifth of investors want some solid proof before going all-in. AI may be coming in strong, but there’s still some convincing to do.

And if you’re looking to stay in tune with consumer and investor behavior, check out all the data in SoFi’s Midyear Investor Report here.