E*TRADE Study Reveals the Emotional Drivers Behind Using an Online Investing Tool
September 27 2016 - 3:05PM
Business Wire
Investors want to feel confident first—and have
peace of mind second—when using an online investing tool
E*TRADE Financial Corporation (NASDAQ:ETFC) today announced
results from the most recent wave of StreetWise, E*TRADE’s
quarterly tracking study of experienced investors. The majority of
survey participants selected ease of use as both the biggest driver
of satisfaction as well as the most important attribute of an
online investing experience. To better understand what ease of use
really means to the retail investor, E*TRADE asked not just what
investors want from a digital experience, but how they want to feel
when using it. And while results show that confidence and peace of
mind are the most important feelings for investors of all ages,
emotional drivers also shift across the generations:
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- Two out of three investors surveyed
want to feel confident more than any other emotion when using an
online investing tool.
- More than half of investors surveyed
are looking for peace of mind in their experience with online
tools.
- For Boomers, who are nearing
retirement, confidence is even more valued, with about three out of
four viewing it as the most important emotion.
- Millennials are slightly less focused
on confidence and peace of mind, with higher percentages also
valuing enthusiasm, excitement, and joy than other age
demographics.
“While gaming and social networking experiences may instill
feelings of excitement and enthusiasm, investing money requires
careful deliberation,” said Hiram Veciana, Vice President of the
Web Channel at E*TRADE Financial. “It is no surprise that main
street investors are looking for confidence as they make investing
decisions online.”
Mr. Veciana offered the following insights on how to deliver
confidence and peace of mind through digital tools:
- Focus on the job at hand:
Digital experiences need to purposefully help investors execute
their core tasks. For instance, stock plan participants require a
succinct summary of benefits and reminders on key actions for quick
consumption. Consolidating tools with historical benefit metrics
and upcoming educational events for participants that want to learn
more is crucial.
- Demystify investment choices:
For newer investors, knowing which securities to trade and what
strategies to deploy may be fraught with uncertainty. A
well-designed trading experience with educational resources at
critical moments may help investors work through the potential
results of certain transactions. For instance, contextual education
that uses plain language and explains risk-reward tradeoffs is
critical for options trading.
- Guide investors at every step of the
way: Investors tend to seek validation of their investment
ideas at each stage of an experience. It is essential that online
trading platforms do their part by providing easy access to key
information such as purchasing power, open orders, prior positions,
and quotes that may further confirm an investor’s intuition, the
moment before a trade is finally submitted.
Visit E*TRADE’s Newsroom for the full Q3’16 StreetWise study
results.
E*TRADE helps investors balance today’s needs with tomorrow’s
goals, through pioneering digital tools coupled with guidance
online and from Financial Consultants. To learn more about
E*TRADE’s trading and investing platforms and tools, visit
etrade.com.
For useful insight from E*TRADE and third-party investment
professionals, follow the Company on Twitter, @ETRADE.
About the Survey
This wave of the survey was conducted from July 2 to July 11 of
2016 among an online U.S. sample of 949 self-directed active
investors who manage at least $10,000 in an online brokerage
account. The survey has a margin of error of ±3.18 percent at the
95 percent confidence level. It was fielded and administered by
ResearchNow. The panel is broken into thirds of active (trade more
than once a week), swing (trade less than once a week but more than
once a month) and passive (trade less than once a month). The panel
is 65 percent male and 35 percent female with an even distribution
across online brokerages, geographic regions, and age bands.
Referenced Data
1. What are the biggest drivers
of customer satisfaction?
TOTAL
AGE: 25–34
AGE: 35–54
AGE: 55+
Ease of use of website 47% 36% 49% 53% Accuracy and breadth of
account/portfolio information 36% 38% 38% 34% Fees and commissions
36% 33% 36% 39% Investing tools and research 25% 23% 24% 29% Speed
in resolving problems 13% 16% 14% 11% Ease of use of mobile app 12%
19% 13% 8% Breadth of products 11% 15% 11% 9% Call center
experience 11% 12% 10% 11% Branch experience
7% 10% 6% 6%
2. Please rate how important each of
the following are when it comes to using a digital tool.
TOTAL AGE: 25–34 AGE: 35–54
AGE: 55+ Intuitive, easy to use, and understand 54%
48% 51% 61% Trusted, ensuring you feel confident your transactions
are secure 49% 46% 47% 53% Hassle-free, helping get things done
quickly 42% 46% 44% 40% Helpful, offering access to support and
guidance when you need it 17% 18% 19% 14% Insightful, offering
value-added information, and expertise 11% 17% 9% 10% Engaging,
offering interactive experiences 11% 15% 16% 3% Personalized to
your needs and behaviors 9% 6% 8% 10% Seamless across all channels
7% 4% 7%
9%
3. Which of the following do you most
want to feel when using an online investing tool?
TOTAL AGE: 25–34 AGE: 35–54
AGE: 55+ Confidence 66% 60% 64% 74% Peace of mind 54%
46% 56% 56% Satisfaction 39% 41% 38% 40% Enthusiasm 7% 13% 8% 3%
Excitement 7% 16% 6% 2% Joy 5% 10% 5% 1% Other
4% 3% 4% 5%
“Millennials” defined as age 25–34 //
“Gen X” defined as age 35–54 // “Baby Boomers” defined as age
55+
About E*TRADE Financial and Important Notices
E*TRADE Financial and its subsidiaries provide financial
services, including online brokerage and banking products and
services to retail customers. Specific business segments include
Trading and Investing and Balance Sheet Management. Securities
products and services, including stocks, bonds, mutual funds,
options, and ETFs are offered by E*TRADE Securities LLC (Member
FINRA/SIPC). Managed Account Solutions are offered through E*TRADE
Capital Management, LLC, an investment adviser registered with the
Securities and Exchange Commission. Bank products and services are
offered by E*TRADE Bank, a Federal savings bank, Member FDIC, or
its subsidiaries and affiliates. More information is available at
www.etrade.com.
The information provided herein is for general informational
purposes only and should not be considered investment advice. Past
performance does not guarantee future results. ETFC-G
E*TRADE Financial, E*TRADE, and the E*TRADE logo are trademarks
or registered trademarks of E*TRADE Financial Corporation.
© 2016 E*TRADE Financial Corporation. All rights reserved.
E*TRADE Financial Corporation and ResearchNow are separate
companies that are not affiliated. E*TRADE Financial Corporation
engages ResearchNow to program, field, and tabulate the study.
About ResearchNow
ResearchNow, a leading digital data collection provider, powers
market research insights. They enable companies to listen to and
interact with the world’s consumers and business professionals
through online panels, as well as mobile, digital, and social media
technologies. Their team operates in over 20 offices globally and
is recognized as the market research industry’s leader in client
satisfaction. They foster a socially-responsible culture by
empowering their employees to give back. To find out more or begin
a conversation, visit www.researchnow.com.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160927006391/en/
E*TRADE Media
RelationsThayer Fox,
646-521-4418thayer.fox@etrade.comorE*TRADE
Investor RelationsBrett Goodman,
646-521-4406brett.goodman@etrade.com
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