Cryptocurrency investing has been rising in popularity among New Zealanders and a fifth of the respondents in a new survey either plan to or have already, put money into digital assets. The poll also found that young Kiwis are more likely to use micro-investing platforms than older generations.
Over 20% of New Zealanders Plan to or Have Invested in Cryptocurrency
Investing in cryptocurrencies and shares has been on the rise in New Zealand, with young people getting into digital investments faster than other age groups. According to a survey conducted for the Financial Services Council (FSC), 40% of Kiwis are currently using or intend to use micro-investing platforms, the New Zealand Herald reported.
The poll found that 21%, or a fifth of 2,000 respondents, have either invested in cryptocurrencies or plan to buy digital coins in the future. That’s a 7% increase since March 2020, the report noted. Actual crypto investors have increased markedly, from 3% to 9.5%, between March last year and April 2021. FSC Chief Executive Richard Klipin commented:
The research shows that since early 2020 New Zealand has followed the global trend towards investing in shares, as well as more speculative assets such as cryptocurrencies.
Klipin highlighted the “incredible rise in digital investors” over the past 18 months. “Our research has revealed that 38.2% of adult New Zealanders currently use, or plan to use, micro-investing platforms.”
The percentage figure corresponds to 1.5 million New Zealand residents and “and reflects a transformational shift in how we are choosing to invest our money,” the CEO explained.
Klipin emphasized that younger New Zealanders have been quicker to change, with 55% of those under 39 years of age likely to use platforms such as Sharesies, Hatch or Stake. The study has also registered a noticeable increase in stock investments, from 23% to 30% for respondents holding New Zealand shares and from 11% to 18% for those with international share investments.
Kiwis Concerned About Security of New Investment Platforms
The poll has further established that traditional online banking, as well as money transfer and mobile apps, are quite popular, with the majority of people either having used or planning to use them. At the same time, less than half of the respondents were using or planning to use newer technologies such as digital wallets like Apple Pay and Google Pay, ‘buy now pay later’ services (around 43%), micro-investing platforms (38.2%), digital currency and robo-advice tools.
Technology adoption is said to have been accelerated by the Covid-19 pandemic. “The ease of access that tech provides makes investment more appealing for people who previously didn’t really consider it as an option,” Richard Klipin noted. Growing personal wealth through better investments is the first cited reason for using micro-investing platforms. Their ease of use is the next major motivation along with the desire to expand financial knowledge and capabilities.
The survey has also found that many New Zealanders remain concerned about security issues associated with new investment technologies. A majority of those polled pointed to the risks of online fraud, identity theft, and scams that could result in financial losses. A staggering 80% of Kiwis said they were worried about privacy.
“After a number of high-profile cyberattacks and ransomware attacks, it’s understandable and encouraging that many are wary about the privacy of their personal information and their finances when using online platforms,” the FSC official elaborated. Klipin believes it’s crucial that the financial services industry keeps pace with the new instruments for investment and personal finance management, while working to provide the information needed to support financial decisions.
What are your thoughts on the findings in the FSC poll? Let us know in the comments section below.
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