Motivations for Investment
Motivations and barriers to first-time investment app use
#investment
#motivation
#barriers
#financial literacy
#social influence
#behaviour
#discovery
#gamification
#experience
Summary

Research explores the motivations and barriers influencing first-time investments through a mobile investment application. The analysis identifies two primary motivations -  financial and non-financial - each with distinct drivers. We examined the influence of social circles, financial education, and platform design on investment intent. The findings provide actionable directions for app features aimed at boosting motivation through enhanced user experience, gamification, personalized content, and financial education, with the goal of increasing first-time investment rates.

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Conducted in April 2024.

Key takeaways
  • A positive perception of a company can override purely rational return–risk evaluations
  • Social proof and peer influence strongly impact users, especially for new investors
  • Financial literacy is a foundation for confidence but not the only driver
  • Gamification, personalization, and education can bridge the gap between app download and first investment
Scope and objective

Problem:

  • Many users download an investment app but fail to make their first investment

Objective:

  • Understand motivations and barriers influencing first-time investment decisions to inform feature design

Research focus:

  • Types of motivation (financial vs. non-financial)
  • Barriers to investment
  • Behavioral and emotional factors influencing decisions
Methods
  • Secondary data analysis / literature review
  • Sources: Academic articles and studies on investment motivation, financial literacy, fintech engagement, and behavioral finance

Approach

  • Identify and extract key themes from literature
  • Categorize motivations into financial and non-financial
  • Synthesize findings to highlight relevant psychological, social, and design-related factors
Results

Motivations

  • Financial - profit maximization, capital growth, foresight, risk management, tax efficiency
  • Non-financial‍
    1. Emotional and self-expressive benefits (ego boost, pride, company affect)
    2. Social influence (peer investment, family expectations, network validation)
    3. Learning and confidence (financial literacy, simulations, expert insights)
    4. Design sophistication (visual dashboards, gamification)

Barriers

  • Low income, low financial literacy, low risk tolerance
  • Limited access to investment platforms and resources
  • Cultural skepticism toward investing
  • Competing financial priorities, especially for younger users
Recommendations
  • Reduce entry barriers (lower minimum capital, easy onboarding)
  • Use identity-based and affect-driven features (company spotlights, personalization)
  • Foster community and peer engagement
  • Integrate learning tools and safe experimentation

You can see proposed features to boost engagements in full results.

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Sources

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See full results