Is This the Last Chance for Investment Fund Companies to Stay Ahead? The findings of Santander TFI’s report “Generations in the Investment Market” leave no doubt. Younger generations are already investing — more boldly and faster than ever before — and they expect full digitalization and convenience.

If investment funds don’t act now, they risk losing the battle for future clients. Fintechs, which recognized the need for digital transformation earlier, are gaining the upper hand by offering simplicity, speed, and tailored experiences. Meeting this challenge requires decisive and immediate action.

Young Investors Are Here, and They Have Different Expectations

For the new generation, investing is a service that should be available anytime, anywhere. They want full control, speed, and flexibility with the option to exit immediately if they want. They choose platforms that are intuitive and aligned with their digital habits. Notably, 38% of Gen Z investors increase their risk exposure as they gain experience, demonstrating their openness to modern products such as ETFs and cryptocurrencies.

Another striking fact: 64% of Gen Z investors are women. This completely reverses the historical trend where men dominated the investment space. For many Gen Z women, investing is becoming a natural part of managing their personal finances.

For investment fund companies, this means rethinking both communication and product design to address the diverse motivations and expectations of this dynamic group.

Older Generations Still Matter — but They’re Less Loyal Than You Think

Generation X and Baby Boomers remain a pillar of the investment market, yet their trust in traditional channels is also changing. More and more say they monitor the market on their own and invest online.

According to Santander’s study, 69% of Baby Boomers prefer smaller but secure returns, and 60% rely exclusively on well-established institutions with a proven track record.

At the same time, online activity within this group is on the rise: 46% of Baby Boomers now invest through smartphones or websites, compared to 38% who still make purchases at physical branches.

This migration from offline to digital channels shows that while older generations value safety, they increasingly expect convenience. Therefore, there is room for growth. With the right support, they can open up to modern tools.

What does this mean for investment fund companies? Older clients remain a large, capital-rich group, but their future loyalty depends on the quality of their digital experience. Investment funds should deliver intuitive, transparent online solutions that not only attract younger investors but also retain older ones. And this isn’t about simply checking the box with a basic online tool.

Investment funds know they can't just stick to tools offering interfaces straight from the early 2000s; they must address the entire digital customer journey in their online solutions.

What motivates investors to make a decision?

Investor motivations vary by age. Younger generations approach investing with greater courage and openness. They are not only concerned with security, but also with the opportunity to earn a profit, the opportunity to try something new, or to achieve personal goals. They are often also influenced by peer pressure, including recommendations from friends or online reviews.

Older people are more likely to invest to protect themselves and their families and protect their assets from depreciation. Regardless of age, however, many investors experience concerns related to the difficulty of assessing risk and a lack of sufficient knowledge, which often prevents them from taking action.

The graphic below shows the structure of investment portfolios across generations, including what they invest in and how they invest.

Investor Education Is Key Across All Generations

KEvery generation expects education, but each learns differently and recognizes authority in its own way. Gen Z is the most digital-native group, favoring short guides, video content, and mobile apps. As many as 62% rely primarily on social media for investment knowledge.

Millennials take a more balanced approach using apps, websites, financial platforms, social media, and podcasts.

Generation X and Baby Boomers still prefer traditional advisors, expert articles, and business media, though they increasingly turn to online content as well. Investment Fund companies that can bridge these diverse needs have the chance to become market leaders.

For more on how self-service platforms support investor education, see the article Self-Service Platforms and Investor Education.

Examples That Prove It’s Possible

Some investment funds are already showing that digitalization is possible, even in a highly regulated industry. e-point clients such as Skarbiec TFI, Investors TFI, and NN Investment Partners TFI are successfully rolling out online solutions that combine simplicity for younger investors with security for older ones.

Collaborating with a technology partner who understands the needs of digital investors can deliver solutions that are both modern and fully compliant with regulations. This means combining safety and transparency with convenience and intuitive use.

As a result, investment fund companies can deliver experiences that meet the needs of younger clients who value speed and simplicity, as well as older ones who prioritize stability and trust. Modern investor experiences don’t have to mean compromise.

This is your last chance to make a change

This is a warning for all investment fund companies. If they don’t bring modern, intuitive tools, younger generations will move entirely to fintechs forever.

Young investors are already making decisions, and soon they’ll represent the majority of the market. If investment companies want to be part of their future, they must invest in technologies that fit their lifestyle. The Santander TFI report leaves no doubt: you must do it to survive. Survival in a market where digital investors feel no loyalty to brands that fail to understand them.

Source: Santander TFI report “Generations in the Investment Market”.