The Blog

Could Arrogance Be Stifling UK Markets?

By Ms Millennial Money, Sarah Penney

UK markets have a rich history and massive potential, but a lack of innovative thinking, the prevalence of traditional attitudes, and yearning for the good ol’ days could be holding us back.  

Digital culture and the growth of online communities is shifting the balance of power, with wealth increasingly moving from traditionally wealthy individuals, with ‘old money’, into the hands of a growing number of younger investors and traders, the ‘new money’.  

There’s an evolution happening and it will have implications for all participants in capital markets. Having a mutual understanding of this shift, embracing the change and engaging with all aspects of the market will help us to make this evolution as inclusive as possible.  

This could start in the City, with a reassessment of the way investor engagement is prioritised. Despite their declining investment in the UK, institutional investors are still valued disproportionately, meaning a significant source of investment capital – wealthy, young, individual investors are being marginalised.  

A continuation of this narrow focus will stifle understanding of the global investment community and put companies at risk of overlooking the vast intelligence and financial power present within the retail investor demographic. 

Problematic Perspectives 

It’s not just companies that are displaying a degree of tunnel vision and unwillingness to evolve their thinking. Unfortunately, it’s a problem across the investment landscape. 

For too long, a prevailing belief has existed among institutional investors and their corporate counterparts that they possess superiority over retail investors. This mindset has created a divide that inhibits collaboration and discourages investment from younger, affluent individuals eager to engage in the markets.  

At the same time, we also see that older retail investors often exhibit condescension, assuming their experience grants them superiority over their younger (and often more successful) counterparts.  

The rise of young ‘degen’ investors—individuals engaging in high-risk trading and speculative investments—has also contributed to an unwelcoming atmosphere in online investment forums.  

These spaces are often rife with male toxicity, alienating prospective investors who do not fit the mold. This culture creates barriers for women and individuals from diverse backgrounds, making it increasingly difficult to foster a truly inclusive investment community. 

While these issues are deep-rooted and feel insurmountable, recognising them and calling out unwelcome behaviour is where we have to start. Inclusivity, a broadening of financial education and greater participation in the markets will lift us all up. 

The Road to Inclusivity 

UK companies have an opportunity to set an example and take leadership in adopting more inclusive approaches to investor engagement.  

Challenging traditional perspectives, starting with those present within businesses themselves, and recognising how companies may be alienating nextgen investors is crucial. By understanding the Gen Zennial investor culture, interests and needs, companies can meaningfully engage. And by engaging, it’s possible to start down the road towards unlocking new streams of funding and ideas, creating a more dynamic market environment. 

A thriving investment culture requires collaboration and the sharing of insights across diverse groups. By shaking off anachronistic attitudes, companies will begin to be able to understand new perspectives and attitudes towards investment. This is the key to a modernisation of UK capital markets. 

Creating Welcoming Online Environments 

Addressing corporate attitudes is one thing, the bigger challenge lies in addressing the toxicity that’s sadly prevalent in online communities.  

But, to get to a point where people from all corners of society feel confident investing, we need to do the hard thing! Getting stuck into these communities, sharing different points of view, challenging discrimination, and setting a good example are the baby steps we can begin to take to make a change. 

Companies also have an opportunity to lead in this sphere. By engaging with conversations, as individuals and in professional capacities, investor relations professionals have the opportunity to deepen their understanding of nextgen investors and begin to shape discussions – promoting learning and a desire to bring everyone up is a positive way to engage.  

 The UK’s Opportunity to Lead 

Sadly, many corporates and individuals in the UK are clinging on to dated concepts of the former glories, this has led to the adoption of new tech and innovation happening at a snail’s pace. With this, the UK has become a tiny fish in global markets.
 

However, we do have innovative individuals and companies trying to haul the country into the 21st century, and by embracing them, and following their lead, the UK has the potential to become a global leader, fostering an inclusive investment culture.  

By shedding arrogant mindsets, acknowledging, and acting upon the need for inclusivity, we could be a first-mover in enriching capital markets and promoting social equity. Investing is not just about personal wealth; it’s about understanding the world, educating oneself and bringing others on a collective journey that enriches our societies.  

As we strive to grow together, the focus should be on fostering an environment of shared insight and financial literacy. By embracing the diverse perspectives and untapped talent retail investors hold, we can invigorate the UK’s capital markets, ensuring they thrive for generations to come. 

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