Do you find the world of trading a touch intimidating? Enthralling? Completely foreign but still a little fascinating? If capital investment piques your interest at all—and perhaps it should—this is the Banking on Experience podcast episode for you!
Capital Market vs. Millennials? Diving into differences.
Dan offers some fantastic perspective around what he calls the two “buckets” at play: active traders and early-stage investors.
As he puts it, “There’s a big gap in the midst of highly active traders who basically engage in a certain way and the millennials and the younger generation who are engaging in mostly adhoc, socially responsive trading.”
Shifting the mindset of FIs to focus on traders that really know the market.
For FIs that want to place more focus here, some changes might need to be made. Our expert believes that financial institutions can do a better job at being a whole lot more transparent. He also encourages them to remember that every trader is different (and to treat them accordingly) and to invest in the customer.
In addition, Dan emphasizes, “The enablement of tools, the enablement of data, and largely engaging continuously will make it better.”
Getting access to active traders: Dan’s top hacks for FIs.
As Dan points out, these higher-end, active traders can be a “goldmine,” But trying to sell them on anything is a mistake. “The average IQ of these traders is so high,” he says, “you can’t just brow-beat them into coming and using you. You need to figure out a way to talk to them at the detail level, at where it matters most.”
Dan’s top hack for FIs here? Earn these investors and “meet them at the dollars and cents level” via purely influencer-based reach out.
How fintech fits into the equation.
Listen in for some interesting details here, but one thing to note: Over the last 10 years, the capability of the retail market has grown immensely. “What was once locked inside the four walls of the traditional institutions and hedge funds and the prop traders, are all now in the hands of retail investors,” says Dan. “You see this fundamental shift of more and more tools, capability, connectivity coming into the market.”
Crypto: where it’s at, where it’s going.
Dan points out that crypto is in a very interesting phase of evolution—and that it has a huge advantage, in that it was adopted by a lot of first-time investors. So, there’s a passion and a “fanfare” about it.
As for our expert himself? He’s a “true believer in crypto” and—even with crypto trading at almost a trillon dollars of stock value this past January alone—he predicts it’s just getting started.
His advice for FIs? “Help traders learn and adopt this, just like we do with the traditional securities… Increase education, enable them with tools…And how the crypto offerings are making money has to be clear to the retail investors.”
Changing the world (yep, you read that right).
Our favorite question each episode: if our expert could change the world with one thing, what would it be? For Dan, it comes back to FIs focusing on transparency, enablement, and empowerment.
Want to contact Dan or learn more about Tradier?