For decades, capital markets were shaped by institutions. Pension funds, insurers and professional asset managers dominated investment flows, while most individuals participated indirectly through pensions, savings products or managed funds.

That balance is shifting.

Across Europe and globally, retail investors are becoming a more influential force in financial markets. Technology, regulatory reform and generational change are reshaping how people build wealth, with more individuals participating than ever before.

In Europe, retail clients accounted for 31.6% of total assets under management at the end of 2024, up from 26.1% in 2020, according to EFAMA. In 2024 alone, EU households invested €258 billion in investment funds, the second-highest annual figure of the previous decade.

Yet Europe’s transition from saving to investing is far from complete. Around 40% of European households’ financial assets remain in bank deposits. For policymakers seeking to finance growth, innovation and the sustainable transition, mobilising even part of this capital has become an economic priority.

For financial institutions, this creates a significant opportunity. But serving a larger and more diverse retail market requires more than making products available. Firms must provide the information, guidance and digital experiences that help people invest with confidence.

From Stockbrokers to Smartphones

Individual investors have long owned shares, bonds and investment funds, but participation historically came with substantial barriers.

Trading was expensive and opening an account involved significant paperwork. Market information was often difficult to access or delayed, while product ranges were limited.

Online brokerage platforms began lowering these barriers in the 1990s and 2000s. The growth of exchange-traded funds then made diversified, lower-cost strategies more widely available.

Smartphones, digital identification and app-based onboarding took accessibility further. Investors could open an account, transfer money, review markets and place an order from the same device. Lower fees, fractional shares and automated investment plans also made it possible to start with smaller amounts.

The COVID-19 pandemic added momentum as many people found themselves with more available income and spending more time online, bringing a wave of first-time investors onto digital platforms. Meme stocks attracted much of the attention, but a more durable change was taking place underneath: investing was becoming a mainstream consumer activity.

Today’s retail investors include self-directed traders, long-term ETF investors, users of digital wealth services and clients combining online tools with professional advice. What connects them is an expectation that investing should be accessible, transparent and digitally intuitive.

Better Product Discovery and Comparison

A long list of investments is not the same as a useful experience. Retail investors need intuitive ways to search, filter and compare products using criteria such as asset class, region, risk, cost, performance, income objectives or sustainability preferences.

Effective fund finders and comparison tools bring product data, documents and key disclosures into one structured journey. They help investors narrow their choices while allowing providers to present complex ranges more clearly.

Continuous Access to Portfolio Information

The relationship does not end once an investment is made. Investors expect to monitor performance, review transactions, access documents and understand how their portfolios are changing.

Secure client portals can provide this access at any time. Digital self-service does not need to replace human support. It can free advisers and relationship managers to focus on more valuable conversations.

Building for the Next Generation of Retail Investors

The rise of the retail investor is not a temporary market cycle. It reflects long-term changes in technology, policy, demographics and attitudes towards financial responsibility.

More consumers will expect to invest through the digital channels they already use. More will move between self-directed tools and professional support as their needs change. And more will judge a financial institution by the quality of its digital experience as much as by the products it offers.

The opportunity for banks, brokers, wealth managers and asset managers is significant. A larger retail market can create new revenue streams, deepen customer relationships and connect more household capital with the wider economy.

Capturing that opportunity requires firms to look beyond distribution. They need reliable data, intuitive discovery tools, personalised digital journeys and continuous access to portfolio information. The organisations that bring these elements together will be best placed to turn growing retail participation into lasting customer relationships.

How Infront Can Help

Infront helps banks, brokers and investment firms deliver the digital experiences modern investors expect. By combining real-time financial data, analytics, portfolio tracking and embedded trading capabilities, firms can create intuitive, scalable investment journeys from research through to execution.