The decentralisation of finance has long been framed as a measure that empowers investors and increases access for consumers that have been traditionally excluded from traditional financial services. This trend now extends to investment, which has long been a pillar of the American dream, grounded on the country’s guiding principle of self-reliance. The rise in popularity of ‘do-it-yourself’ investing, such as online brokerages, fintech tools and robo-advisors has increased the number of products and services available to investors beyond placing money in the hands of advisers or on their 401k pension schemes. On the one hand, this expansion has made investment more accessible. On the other hand, it has placed a greater burden on investors to make decisions based on competing sources of information. By doing so, decentralised finance has not delivered on its promise to empower and expand the universe of investors and may in fact be contributing to deepening existing inequalities and the erosion of trust on financial institutions.

In order to better understand the behavioural and psychological dynamics of Americans investing in a more decentralised universe, Economist Impact conducted a survey of 1200 active individual investors across a broad spectrum of ages and income levels. The survey aimed to discover the role that investment is playing in Americans’ financial lives and how attitudes, perceptions and values shape investors’ decisions. The survey found that:

●      The Internet has become the main source of financial information for Americans, particularly for young and lower income investors. However most of them still recognise that the Internet is not necessarily the most trusted source of financial advice.

●      Greater access to investment products and information has not improved investors’ confidence to make good financial decisions and achieve their financial goals. Most investors are unsatisfied with their performance so far and lack confidence on their ability to make good financial decisions.

●      The covid-19 pandemic forced Americans to reassess their long-term financial goals. Overall American investors are feeling more worried about their financial future than about their ability to manage their day-to-day finances.

●      Americans still recognise the role that investment plays in helping them achieve their financial goals and a quarter sought financial advice to help them navigate the uncertain economic landscape.