The Future of Capital Markets: Democratization of Retail Investing

The report analyzes the surge in retail investing driven by technology and macroeconomic factors, identifying critical gaps in financial literacy and trust. It advocates for a multichannel approach to advice and a collaborative effort between public and private sectors to empower retail investors.

• Retail investor participation grew significantly between 2019 and 2021, with users of major low- and no-fee stock trading apps increasing by 48%, from 61.9 million to 91.5 million.
• Retail investors have demonstrated significant collective market power, exemplified by the 'meme stock' phenomenon where social sentiment caused some company stocks to soar more than 400% in January 2021.
• A substantial portion of the global population remains non-investors due to fear of financial loss and a lack of knowledge; for example, only 1% of the population in Mexico and Indonesia were considered retail investors in 2020/2021.
• There is a significant gap in financial literacy, with 74% of retail investors stating they would invest more if they had more opportunities to learn, and 55% reporting they only learned about investing after entering the workforce.
• Trust in traditional financial institutions is notably higher in emerging markets than in developed markets; for instance, 49% of Brazilian investors would choose traditional institutions as their primary provider, compared to 16% of Japanese investors.
• Retail investors often lack understanding of basic products; 40% of investors reported not understanding bonds, while 29% did not understand cryptocurrencies.
• The report identifies three primary levers—access, education, and trust—as essential for creating an 'empowered investor' who can navigate markets and achieve long-term financial resilience.
• The industry is encouraged to adopt a multichannel approach that combines digital self-service (such as robo-advisers) with human, personalized advice to reach investors across all wealth tiers.
• The report calls for governments to embed financial literacy into early-education curricula and for the industry to develop a globally-accepted standard or label for responsible investing best practices.

APA

World Economic Forum (2022). The Future of Capital Markets: Democratization of Retail Investing. https://www3.weforum.org/docs/WEF_Future_of_Capital_Markets_2022.pdf

Chicago

World Economic Forum. The Future of Capital Markets: Democratization of Retail Investing. 2022. https://www3.weforum.org/docs/WEF_Future_of_Capital_Markets_2022.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=The Future of Capital Markets: Democratization of Retail Investing |date=August 2022 |url=https://www3.weforum.org/docs/WEF_Future_of_Capital_Markets_2022.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2022future, author = {{World Economic Forum}}, title = {{The Future of Capital Markets: Democratization of Retail Investing}}, institution = {World Economic Forum}, year = {2022}, month = aug, url = {https://www3.weforum.org/docs/WEF_Future_of_Capital_Markets_2022.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }