Month: November 2020

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Smart Cities

  • November 23, 2020

  • Eyes4Research

As urbanization increases, cities around the world are rushing to integrate new technologies to improve the lives of civilians. Technologically advanced urban areas, also referred to as Smart cities, enhance the lives of citizens through digital technologies that improve, enhance, and connect infrastructure. By using IoT technology, urban areas can collect and use data to make decisions for improving processes. With this, smart city technology betters the lives of the population by optimizing transportation, public safety, air and water quality management, and energy conservation. 

Examples of Smart City Technology 

There are many uses for smart city technologies. Here are some of the most common applications of these systems and how they work to improve systems across transportation, safety, and environmental sectors. 

Smart Transportation

Developing a smart transportation infrastructure optimizes travel while also improving safety. By using big data and IoT technologies, smart city transport systems create a network referred to as an Intelligent Transportation Network, otherwise known as ITN. This network has a myriad of capabilities. For one, an ITN includes a transportation management system to improve the flow of vehicles. ITNs also inform citizens of road conditions through a route information system and electronic timetable, offering suitable public transportation options. To access these public transit options, ITNs can provide citizens with rechargeable fare cards, further simplifying travel. Finally, an ITN can prevent accidents by implementing a safety and vehicle control system to alert citizens of dangerous road conditions. 

Predictive Crime Technology

Smart city technology promotes the safety of citizens by implementing real-time crime mapping technologies to determine patterns of crime. Surveillance street lights, crime-mapping systems, gunshot detection systems, and CCTV collect data for analysis by autonomous artificial intelligence technology. With this, law enforcement can more easily identify crime hot-spots and predict incidents to re-enforce security in high crime areas. With this, smart city technologies can decrease crime rates in cities, keeping civilians safe and deterring incidents. 

Smart Energy 

Utilizing big data helps cities become more energy efficient. For example, smart energy grids can plan out energy distribution by using data to regulate supplies to different areas based on consumption. Additionally, a growing number of cities have begun utilizing smart lighting. This technology allows for automatic light adjustment to conserve energy, as well as video surveillance, traffic, and curb management, traffic light controls, and public wifi capabilities. Self-learning buildings also save energy, using wireless sensors and data mining to optimize building heating and ventilation. 

Smart Environment Technologies

IoT technologies enable environmental monitoring to promote greener cities. By collecting and utilizing emissions data from monitoring systems to prevent road and building pollution and providing real-time air quality updates to the population, helping them avoid hazardous areas, these technologies improve air quality and the health of citizens. Similar technology also improves water quality by collecting data on flow, chemical composition, and consumption in real-time, helping maintain clean drinking water and reduce water waste. 

Smart waste management systems also help keep cities clean by using data collected by sensors to prevent overflowing by monitoring fill levels, optimizing waste collection routes to minimize carbon emissions, and reducing overall costs of operations. By utilizing IoT sensor technology, cities can maintain clean streets, preventing pollution. 

Benefits of Smart Cities

  1. Public Safety

Through increased surveillance, improved road conditions, and environmental monitoring, smart city technology drastically improves public safety by preventing dangerous crimes, vehicle accidents, and environmental hazards before they happen. With this, citizens can rest easy knowing the environment in which they live optimizes systems with the population’s health and personal safety in mind.  

2. Energy Efficiency

Smart city technology helps make cities greener by utilizing technology to make processes more energy efficient. By reducing commute times, tracking air and water quality, and building energy-efficient buildings, urban areas can reduce their carbon footprint while improving the quality of life for its inhabitants. 

3. Improved Transportation

Improving connectivity between infrastructure and citizens through IoT technology helps make urban transportation more efficient. From traffic and public transit updates, parking assistance, and digital fares, citizens can commute and travel with ease. Simplifying these systems also reduces emissions through lessened travel times, creating more environmentally friendly transportation. 

Challenges of Smart Cities 

  1. Security and Privacy

IoT technology may become susceptible to cyber-attacks if not maintained promptly. The results of these hacks may have catastrophic consequences, compromising the security and privacy of millions of citizens. With this, smart cities are investing more money into security, utilizing new encryption techniques to protect against hacking and cyber-terrorism. 

In addition to cyber-crime, increased surveillance and sensors may draw privacy concerns from citizens who see these technologies as an invasion of privacy. Though these measures aim to deter crime and improve processes, a lack of public education may contribute to concern. When implementing smart city technologies, transparency, and education, regarding new technologies remain imperative to the successful integration of these systems into the lives of citizens. 

Costly Integration

Installing and maintaining smart city infrastructure costs millions of dollars and may take years to implement due to a lack of funding and slow approval processes. Replacing old infrastructure may also come at a hefty price, as complicated, unforeseen challenges with transportation, wiring, pipes, and internet installation can put projects back by days to months, causing issues for city residents. When looking to implement these technologies, developers and tech companies must work together to find solutions, overcoming these challenges in a timely and cost-efficient manner. 

2. Inclusivity 

Many smart city technologies aim to connect citizens with the infrastructure around them. With this, technology needs to be available to all citizens to ensure the successful integration of these systems. Ensuring that these technologies are widely available, user friendly, and affordable remains a difficult task and may further divide between income and education levels if not implemented properly. 

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How to Use Incentives to Increase Response Rates

  • November 18, 2020

  • Eyes4Research

Recruiting the right amount of participants remains essential in conducting a successful research initiative. For many researchers, low response rates result in inconclusive data that hinders one’s ability to make data-driven decisions. The solution? Utilizing incentives to motivate participation. Offering participants a reward for their time remains an effective method to draw in more respondents for better quality data. By understanding when and how to use incentives, researchers can maximize participation for better quality data. 

When to Offer an Incentive

Incentives work best to increase response rates in studies that target niche audiences, also referred to as non-responders, time-consuming research studies, and surveys that have been sent out but need more respondents without biasing the sample. So what research methods use incentives most often? 

  1. Surveys 

Surveys are a quick and easy way to receive feedback from large populations. There are many options researchers can use to administer surveys, including web forms, email, phone calls, physical mail, apps, and text messaging. Regardless of the deployment method, tools such as Eyes4Research’s survey platform helps researchers easily collect and analyze data for valuable insights. Researchers often utilize incentives for time-consuming surveys that may deter respondents otherwise. Though offering an incentive is the best way to increase response rates, it may not be appropriate for every initiative, including customer satisfaction and short surveys.

2. Focus Groups 

Focus groups help researchers receive feedback in real-time through guided discussions led by a moderator. This qualitative research method can be conducted in-person or virtually depending on the geographic barriers of the target audience. Compensating focus group participants for their time motivates people to sign up, increases turn out to the study and helps research initiatives stand out amongst others. 

3. Studies with Continuous Engagement 

For long-term research projects, incentives remain imperative for ensuring constant participation. The size of the incentive provided depends on the timespan and the level of effort required by participants. Whether the study takes a few weeks or a few years, offering a reward for one’s time and participation reduces the risk of drop out for high-quality results. 

Types of Incentives

There are two types of incentives researchers can use; monetary and non-monetary. When deciding between the two, researchers must consider their target population, the time of execution, and if the value of the incentive matches the time and efforts required by respondents. 

  1. Monetary Incentives

Monetary incentives consist of cash/checks, gift cards, coupons, and money orders. The amount given to participants may depend on the budget for the research initiative, the method of distribution, and the target population of respondents. Researchers should also factor in the time the research initiative takes to complete, including the cost of travel for in-person studies. Though there is no minimum or maximum amounts for monetary incentives, the more appealing the award, the higher the response rate will be. 

2. Non-monetary Incentives

Non-monetary incentives include non-client branded vouchers, free merchandise, prize draws, and even charitable donations. These types of incentives can be personalized to the target audience, further promoting participation. For example, if a researcher conducts a study on teachers, providing recipients with school supplies may be of more value than other incentives. 

After determining the incentive, researchers must decide when to distribute rewards to participants. Promised incentives are given to participants after completion of the research initiative. These incentives are the most cost-effective and easy to distribute to participants. Prepaid incentives reward participants before they complete the research initiative. Though this method proves most successful in increasing response rates, it may be costly and more difficult to execute. 

Considerations When Choosing an Incentive

There are a few things to consider before deciding on an incentive to ensure a successful research initiative. Here are some factors researchers should keep in mind when determining how to reward participants. 

  1. Methodology 

The appropriateness and size of an incentive rely on the methodology used for the study. When conducting research in-person, external factors such as travel, food, or lodging, may require reimbursement. The same goes for initiatives requiring participants to purchase products. For ongoing studies, researchers may pay respondents in increments to discourage participants from dropping out before the completion of the research study. Whatever the methodology, the incentive provided must match the commitment asked by the researcher. 

Type of Respondents:

To successfully execute a research initiative using incentives, researchers must take into account the type of respondents they are rewarding. Factors such as age, profession, and annual income influence the value of an incentive, as researchers must know the motivators of their target audience before choosing a reward. The difficulty in finding an audience also influences the size of incentives. With this, researchers may offer higher incentives to maximize the number of niche participants. 

  1. Transparency with Respondents

When recruiting respondents, researchers must remain transparent with the type of incentives provided. Throughout the research study, participants must stay informed of any changes to incentives, the timeline of receiving their reward, and how incentives may differ by the task. After the participant completes the agreed-upon task, the researcher must abide by the conditions they established for incentive distribution. Maintaining open communication regarding incentives throughout the research process promotes participant satisfaction by preventing misunderstanding or disagreement. 

2. Ethical Considerations  

There are several ethical considerations to keep in mind when offering research incentives. For one, researchers cannot ethically give unopened or unused client-branded products as an incentive to participants due to a conflict of interest. Also, researchers must ensure the incentive provided is suitable for the task participants must complete. Offering an excessive reward for the completion of a task may result in undue influence in which the incentive distorts decision-making, undermining the validity of their consent. As mentioned above, transparency with participants is also essential in conducting an ethical study. 

Interested in adding incentives to your next research initiative? Eyes4Research has got you covered. Take advantage of Eyes4Research’s state of the art community platform to recruit, profile, panelize, and incentivize respondents. Visit www.eyes4research.com to start increasing your participation rates today! 

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The Implications of Fast Fashion

  • November 18, 2020

  • Eyes4Research

Over the past few decades, the emergence of fast fashion has changed the way consumers shop for clothes. Fast fashion refers to inexpensive, trendy garments that move quickly from the catwalk to fashion retailers in order to capture the latest style trends. By utilizing low quality material and rapid production methods, fashion brands are able to release at least one new clothing collection every week, according to Elizabeth Cline. Fast fashion produces 80 billion garments per year, 400% more than 20 years ago, with clothing items worn an average of seven times before disposal. With the expeditious replication of trends along with cheap production, the fast fashion industry causes more harm than good, negatively impacting the environment, human rights, and the wallets of consumers.

Environmental Impacts

The fast fashion industry plays a large role in climate change and environmental pollution by generating substantial amounts of waste and greenhouse gas emissions. With this, fast fashion accounts for 10% of the world’s carbon emissions, producing more than international flights and maritime shipping combined, according to Business Insider. In terms of water pollution, textile dying has become the second largest polluter on the planet, as microfibers from clothing make up 30% of plastic pollution in the ocean, as reported by Greenpeace. Because these garments are made with low quality materials, consumers dispose of items more frequently, with 85% of textiles ending up in landfills every year.

Unethical Labor Practices

In addition to fast fashion’s detrimental impacts on the environment, many of these brands export labor overseas to nations with inadequate labor laws. With no regulations on work hours, employee age, or health and safety conditions, employees must endure dangerous work environments for very little pay. Though fast fashion brands may claim to fairly compensate their garment workers, the minimum wage in manufacturing countries such as China and India is five times less than the living wage, as most laborers live in poverty working an average of 96 hours per week. With the inability to form unions, employees have no choice but to endure abhorrent factory conditions, often facing verbal and physical abuse while on the job. Child labor is also a common practice, with millions of young children forced into garment work to help support their families. These unethical practices exploit workers for the sake of saving money on labor and producing large quantities of clothing.

Shopping Smarter

Though fast fashion remains a large part of the clothing industry, there are many ways for consumers to shop mindfully. With an increase in companies considering their environmental and social impact, shopping sustainable brands has never been easier. Though these clothes may be more expensive, consumers are paying for garments made with high quality materials lasting longer than clothing produced by fast fashion. This helps shoppers buy clothes less often, having a positive impact on the environment and consumer wallets. In addition to buying from sustainable brands, shopping from companies with transparent labor practices prevents consumers from contributing to the unethical treatment of workers. Thrifting and donating clothing items also helps to lessen environmental and social impacts of fast fashion. Recycling garments through second hand stores keeps them out of landfills and the ocean, decreasing pollution in the water and on land. Buying recycled clothes remains a great alternative to fast fashion for people on a budget, while ensuring consumers’ money does not support sweatshop labor. Overall, in order to lessen the negative impacts of fast fashion, consumers need to embrace alternative brands and shopping practices as well as educate others on the true cost of cheap clothing. With this, the fashion industry can move towards a more sustainable and socially just future.

The Implications of Fast Fashion

Over the past few decades, the emergence of fast fashion has changed the way consumers shop for clothes. Fast fashion refers to inexpensive, trendy garments that move quickly from the catwalk to fashion retailers in order to capture the latest style trends. By utilizing low quality material and rapid production methods, fashion brands are able to release at least one new clothing collection every week, according to Elizabeth Cline. Fast fashion produces 80 billion garments per year, 400% more than 20 years ago, with clothing items worn an average of seven times before disposal. With the expeditious replication of trends along with cheap production, the fast fashion industry causes more harm than good, negatively impacting the environment, human rights, and the wallets of consumers.

Environmental Impacts

The fast fashion industry plays a large role in climate change and environmental pollution by generating substantial amounts of waste and greenhouse gas emissions. With this, fast fashion accounts for 10% of the world’s carbon emissions, producing more than international flights and maritime shipping combined, according to Business Insider. In terms of water pollution, textile dying has become the second largest polluter on the planet, as microfibers from clothing make up 30% of plastic pollution in the ocean, as reported by Greenpeace. Because these garments are made with low quality materials, consumers dispose of items more frequently, with 85% of textiles ending up in landfills every year.

Unethical Labor Practices

In addition to fast fashion’s detrimental impacts on the environment, many of these brands export labor overseas to nations with inadequate labor laws. With no regulations on work hours, employee age, or health and safety conditions, employees must endure dangerous work environments for very little pay. Though fast fashion brands may claim to fairly compensate their garment workers, the minimum wage in manufacturing countries such as China and India is five times less than the living wage, as most laborers live in poverty working an average of 96 hours per week. With the inability to form unions, employees have no choice but to endure abhorrent factory conditions, often facing verbal and physical abuse while on the job. Child labor is also a common practice, with millions of young children forced into garment work to help support their families. These unethical practices exploit workers for the sake of saving money on labor and producing large quantities of clothing.

Shopping Smarter

Though fast fashion remains a large part of the clothing industry, there are many ways for consumers to shop mindfully. With an increase in companies considering their environmental and social impact, shopping sustainable brands has never been easier. Though these clothes may be more expensive, consumers are paying for garments made with high quality materials lasting longer than clothing produced by fast fashion. This helps shoppers buy clothes less often, having a positive impact on the environment and consumer wallets. In addition to buying from sustainable brands, shopping from companies with transparent labor practices prevents consumers from contributing to the unethical treatment of workers. Thrifting and donating clothing items also helps to lessen environmental and social impacts of fast fashion. Recycling garments through second hand stores keeps them out of landfills and the ocean, decreasing pollution in the water and on land. Buying recycled clothes remains a great alternative to fast fashion for people on a budget, while ensuring consumers’ money does not support sweatshop labor. Overall, in order to lessen the negative impacts of fast fashion, consumers need to embrace alternative brands and shopping practices as well as educate others on the true cost of cheap clothing. With this, the fashion industry can move towards a more sustainable and socially just future.

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The Rise of Clean Labels in the Food Industry

  • November 16, 2020

  • Eyes4Research

In the past few years, the demand for clean label products has grown exponentially as health-conscious consumers are seeking out more natural and simple ingredients. According to Lascom, clean label products make up 33% of the food and beverage market and continue to expand as more clean label options enter the market space. A trend report by Allied Market Research predicts the clean label market to reach $64.1 billion by 2026, growing at a CAGR of 6.8%. So what exactly constitutes a clean label product and what factors are driving this growth? 

What is a Clean Label?

Defining a clean label product remains difficult without a singular definition. With this, consumers may define a clean label product as a good containing simple, natural, and easily identifiable ingredients. Many clean label products offer substitutes for commonly used artificial and synthetically produced products. For example, clean label products may substitute synthetic dyes for plant extracts or juice concentrates. Artificial flavor enhancers are also commonly switched out for yeast extract, and artificial preservatives are often left out altogether. 

Key Drivers of Growth

The growing demand for clean label products spawns from increased consumer health awareness, a rise in disposable income, an improvement in living standards, and the promotion of healthy living trends, as stated by Allied Research. When looking at the appeal of clean labels across generations, Millenials and Baby Boomers are driving the growth of clean label products. A study conducted by C+R Research found that Millennials and Baby Boomers are most vigilant when it comes to product labels. On the other hand, Gen Xers show the least amount of concern with product ingredients. Of those who participated in this study, 69% said that reading labels impacts their shopping habits.

Disadvantages of Clean Label Products

Despite the health benefits of clean labels, the issues facing these products may deter companies from adjusting their ingredients, and consumers from purchasing such items. For one, these products often have a shorter shelf life due to a lack of preservatives and artificial substances. Though natural ingredients provide more health benefits, these products may require non-traditional storage methods such as refrigerating or freezing and are easily perishable. With this, storage costs may increase for manufacturers while also preventing consumers from purchasing items that will last for days instead of months. 

In addition to the shorter shelf life of clean label products, some companies may struggle to reformulate items to maintain the same consistency and flavors. For food and beauty products, these elements may be deciding factors for consumers and can help or hurt sales depending on the changes made to the existing product. Due to the lack of a legal definition for ‘clean label,’ many of these products are open to interpretation by consumers, leading to litigation risks from misleading claims. Many users mistake clean label products for being healthier when, in fact, this is not always the case. 

Finally, clean label products may cost more than traditional items, appealing more to those with disposable incomes. This price hike results from a higher cost of ingredients and production. Despite this, 75% of consumers will pay extra for clean label ingredients, according to Ingredient Communications. With this, clean label products are here to stay, promoting ingredient transparency and simplicity. 

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Primary vs. Secondary Research

  • November 11, 2020

  • Eyes4Research

Primary and secondary research remains essential to gaining important insights regarding business best practices and strategies. Understanding how and when to use these techniques helps organizations stay ahead of the competition through data-driven decision making. Here is a rundown of both research methods. 

Primary Research

The primary research methodology involves direct data collection by researchers, allowing for an in-depth analysis of the subject matter using qualitative and quantitative methods to develop or prove hypotheses. Primary research gives organizations full ownership over the data collected, providing businesses with a competitive edge. Personal access to the most recent and relevant industry data allows decision-makers to better assess problems and opportunities for effective solutions.

Primary Research Examples:

Primary research involves conducting quantitative and qualitative research for accurate data analysis. Eyes4Research’s blog explains the difference between these methods to help researchers optimize their data. Here are examples of primary research methods. 

Surveys: Surveys effectively collect quantitative data from large numbers of participants. This technique allows researchers to ask carefully crafted, closed-ended questions to quantify participant preferences, behaviors, opinions, and more. Surveys can be created, deployed, and analyzed using online services such as Eyes4Research’s survey platform or distributed to participants in person. 

Interviews: Interviews are a popular qualitative technique used to obtain qualitative data from a select group of participants. This method allows the researcher to ask open-ended questions to subjects to gain insight into their experiences, opinions, and preferences. 

Observations: Observational research allows researchers to view subjects in natural situations with no controlled variables to collect qualitative insights. There are two approaches to this method; naturalistic observation, where the subject is unaware of the researcher, and participant observation in which researchers interact with subjects. This non-experimental method provides insights into the actions of participants, rather than their words. 

Focus Groups: This qualitative technique collects insights from groups of people with similar characteristics. Led by a moderator, focus groups promote open discussion on topics for direct insights from selected audiences. Focus groups can be curated by the researcher or through trusted research partners such as Eyes4Research

Pros and Cons of Primary Research

One should consider the benefits and drawbacks of primary research before beginning an initiative to ensure goals and objectives align with research techniques. 

Pros:

Proprietary Rights 

Organizations and researchers have full ownership over the studies they conduct, allowing entities to control how they execute and use their research. With this, primary research provides a competitive advantage over those without access to data, allowing researchers to get the most out of their initiatives. 

Specificity

Primary research provides researchers with the data they need for their specific initiatives. From common to niche industries and subject matter, this research technique allows for complete personalization to obtain essential data for strategy and decision making. With this, researchers have control over all aspects of their research to find which methods and techniques best fit their overall research objectives. 

Relevance   

Real-time data collection affirms reliable analysis by promoting relevant insights. Unlike secondary research that may become fallible with time, primary research methodologies ensure that insights reflect the current state of subjects as they are measured. With this, researchers capture the most accurate representations of their subjects for optimal data. 

Cons:

Time Consuming 

Depending on the method used, primary research may be time-consuming. From developing a research approach, finding the right participants, waiting for responses, and analyzing data, it may take days to years for researchers to obtain the necessary insights for data-driven decisions. This may also increase costs. Thankfully, online research services, such as Eyes4Research can help research initiatives stay on time and cost-efficient. 

Secondary Research 

Secondary research relies on existing resources and data, helping researchers acquire necessary information quickly and easily. The goal of secondary research is to gain a broader understanding of the subject matter, promoting more informed decision making. Because this technique uses data collected from others, researchers may face limitations regarding research relevance to their overall goals. 

Secondary Research Examples:

There remains a myriad of credible sources for researchers to use when conducting secondary research. From previous studies, literature, and even internet sources, it has become easier than ever to access tried and tested data. Here are a few examples of secondary research sources.

Online Resources

The internet provides researchers with billions of possible sources from all over the world at one’s fingertips, providing a low-cost, efficient approach to secondary research. When searching for information, one must consider the credibility of websites to avoid inaccurate data. 

Case Studies 

Case studies are a reliable source of information that helps researchers look at specific problems and how they were solved to help them apply solutions to similar areas. 

Books and Publications

From textbooks, ebooks, magazines, and journals, researchers can find virtually everything they need using this source of secondary research. With resources accessible both online and at local libraries, books and publications simplify the search for insights for the efficient execution of research initiatives. 

Commercial Sources

Commercial media sources provide a plethora of information for researchers to enhance understanding of specific subject matter. From newspapers, journals, magazines, podcasts, radio shows, and television broadcasts, there are plenty of options for a myriad of research needs. When using commercial sources, researchers must take into account possible bias’ and misleading information to protect the integrity of their data. 

Government Agencies

From geographic and census information, access to whitepapers, and reports, government sources offer reliable information to help researchers gain necessary insights. 

Pros and Cons of Secondary Research

When considering secondary research, one must consider the factors below to ensure this technique supports research initiative goals. 

Pros:

Affordability 

Secondary research may be ideal for those on a budget, as researchers do not have to pay to conduct a study or compensate participants for their time. Despite this, some research studies charge a fee to obtain information.

Convenience 

Secondary research provides immediate access to data, as researchers do not have to develop an initiative or wait on results. With many resources available online, this method requires little to no travel, making it exceptional for those with geographic limitations. 

Cons:

Lack of Specificity 

By using existing resources and data, researchers are unable to alter initiatives to fit their individual needs. Because of this, studies may not take into consideration all the variables needed to obtain accurate insights. 

Information Validity 

The year a study is published may affect research validity. For some research initiatives, using secondary research published years prior provides inaccurate insights that are not reflective of the current state of the subject matter, hindering the ability to make informed decisions. 

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Fintech’s Hottest Trend: Investment Apps

  • November 5, 2020

  • Eyes4Research

From coronavirus to the upcoming presidential election, 2020 has been a turbulent year for the stock market. Despite this, a growing number of consumers are investing through stock trading apps. From beginner to experienced investors, trading apps provide a simple, hands-on approach to buying and selling stocks, putting consumer’s funds at their fingertips. With such ease comes a substantial amount of risk, as inexperienced users may face large financial losses without proper guidance. 

Investment App’s Increasing Popularity 

Fintech innovations have made it easier than ever to access and build one’s financial portfolio. From micro-investment apps, Robo-advisors to mobile stock trading programs, consumers have a myriad of options when it comes to managing their assets. Though investment apps have been around for years, the pandemic has accelerated their growth. According to Adjust, investment app sessions were up 88% from January to June of 2020, making it the second-fastest-growing vertical of the year. Key drivers of this market growth include a growing number of remote workers, low barrier of entry, low commissions, app simplicity, and increased financial literacy. These factors have created a cheaper and easier way to invest, opening markets to more people than ever before. When looking at investor demographics, these apps have grown in popularity amongst younger generations, such as millennials and gen x consumers, as stated by The Economist

Problems Stock Trading Apps 

Trading apps attract many novice investors, providing intuitive tools to help manage portfolios and educate users on the stock market. Despite this, investment apps pose several problems. Due to a lack of financial literacy and the ease of trading, many traders have faced catastrophic financial losses. Many of these apps have gamified stock trading, making it dangerously simple to access and move around funds. For amateur investors, Robo-advisor technology may not provide enough information to make informed financial decisions. Investment apps fail to consider the user’s debt, taxes, and retirement plans, making it difficult for investors to see the big picture of where their money is going. With this, in-person financial consulting remains the best option for inexperienced traders, providing more personalized and guided investing strategies. 

What the Future Holds 

The investment app industry continues to evolve, with many following Robinhood by eliminating commission fees to open the door to more investors. As more consumers use these services to manage their assets, financial literacy becomes crucial to prevent poor investments. Improving algorithms to better assess risk tolerance, collecting more information on consumer financial portfolios, and providing investors with substantial information before making investment decisions may help users manage their money responsibly, while enhancing app’s overall user experiences.  

https://www.prnewswire.com/news-releases/global-fintech-app-usage-grew-significantly-in-h1-2020-accelerated-by-covid-19-301146314.html

https://www.cnbc.com/2020/10/07/how-robinhood-and-covid-introduced-millions-to-the-stock-market.html

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