The latest National Financial Capability Study from the FINRA Foundation has shed light on how U.S. investors are reassessing their expectations, information sources and appetite for risk.
The research confirms a trend already visible across the financial services ecosystem: the landscape shaped by the post-pandemic surge is giving way to a markedly different era of investor engagement. Slower market entry, heightened caution, and shifting information dynamics are now defining this new chapter, said Red Oak.
One of the clearest signs of change is the sharp slowdown in new investors entering the market. Growth has cooled significantly, and risk tolerance has retreated across age groups. Younger participants are increasingly turning to social media channels and finfluencers to guide decision-making, which is reshaping traditional advisory relationships. Meanwhile, enthusiasm for complex assets such as cryptocurrency has become more measured, signalling a combination of caution and selective curiosity.
Red Oak, whose platform spans compliant content distribution, supervision and communications surveillance, has observed similar patterns emerging across its ecosystem. Many of the trends flagged by FINRA are already visible in how advisors and investors interact with its tools. Against this backdrop, the organisation has highlighted the study’s core themes and explored how they intersect with real-time user behaviour on the Red Oak platform.
A significant change highlighted by FINRA is the reduction in risk appetite. Only 8% of investors in 2024 said they were prepared to take substantial risks for higher returns, falling from 12% in 2021. Among investors under 35, willingness dropped from 24% to 15%. This shift is closely tied to the uncertainty of 2025, shaped by tariff debates, the Big Beautiful Bill and a prolonged government shutdown that tested investor resilience amid volatile market conditions.
Activity on Red Oak’s compliant distribution tool, 4U, reflects similar behavioural shifts. Searches for terms linked to volatility, bear markets and risk management more than doubled over the year, signalling a demand for clearer guidance as investors navigated unfamiliar conditions. “Tariffs” became the platform’s most-searched term, underscoring how macroeconomic concerns influenced investor sentiment.
The study also shows diverging trends in cryptocurrency. While the proportion of investors considering crypto has declined from 33% in 2021 to 26% in 2024, advisor interest has accelerated. Search activity on 4U relating to digital assets rose by more than 200% year-on-year. This suggests that while retail investors are taking a step back, advisors are actively preparing to answer questions and understand risk frameworks, reinforcing the need for practical and compliant educational materials.
One of FINRA’s most notable findings is the growing influence of social media as an investment education channel. Platforms such as YouTube, along with finfluencers, are becoming primary sources of information — particularly for younger investors. While this model fosters relatability and trust, it also introduces risk, as polished content can mask limited expertise. High-production videos increasingly blur the lines between entertainment and advice, creating challenges for both firms and supervisors.
At the same time, trends observed within Red Oak’s supervision tools align with FINRA’s conclusions. The rise of personality-driven content has deepened investor-creator engagement, but it has also pushed more conversation into private or less visible channels. FOMO-driven activity persists as a motivator, even though long-term investing fundamentals remain unchanged.
FINRA’s findings ultimately reinforce what financial institutions have been experiencing: investor behaviours are shifting rapidly, and advisory teams must be equipped to adapt. For organisations, the priority is not producing more content, but developing the right content — delivered with speed, consistency and compliance.
Red Oak believes technology will play a decisive role in this transition. Its platform is designed to unite content creation, review, distribution and supervision within a single intelligent system. By reducing manual friction and accelerating oversight, Red Oak aims to give advisors the compliant insights they need to guide investors effectively in a fast-moving environment.
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