In 2023, investors withdrew more money from investment accounts than they did in 2022. However, as noted last week, more dollars were transferred to investment accounts in 2023 and the overall net investment increased.
This could be another indication that there is a bifurcation in how different investors are behaving in the economy today. One group is investing more than ever. Another group is investing less and may actually be selling investments, perhaps in response to higher costs and dwindling savings.
Financial institutions should be tracking account holder investment transactions to tailor engagements that are relevant to their behaviors. Understanding that money is leaving the institution to external investment accounts is important, and provides the financial institution an opportunity to reclaim those dollars with investment products that may be relevant to the account holder.
Alkami Telemetry Data for this figure was sourced from a panel of 22 financial institutions with more than 2.5 million account holders and over 1.5 billion transactions.
