Investment participation in finland : barriers and enablers
Winther, Oliver (2025)
2025
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2025112629939
https://urn.fi/URN:NBN:fi:amk-2025112629939
Tiivistelmä
This research-based thesis studies the factors influencing investment participation among Finnish retail investors and non-investors. The main purpose is to identify the barriers that restrict individuals from actively engaging more in financial markets, and the potential enablers that could encourage higher participation. The study is motivated by curiosity regarding why Finland’s investment participation rates continue to lag behind the other Nordic countries in, despite the recent growth in recent years.
The theoretical framework of this study focuses on behavioural finance theories and concepts, and structural and institutional factors that are used for analysing investment participation in the Finnish context. These perspectives offer a deeper understanding how individual decision-making, psychological influences, financial literacy, access to digital platforms, trust, regulation, and demographic factors that together affect investment decisions behaviour. The framework provides a well-grounded foundation for understanding different levels of participation across groups and what solutions could improve engagement in the financial markets.
The research was carried out using quantitative research methods. Data were collected through an online survey (n=174), which was targeted for both investors and non-investors across Finland aged 18 and above who manage their own financial matters. The survey studied these two groups separately to identify differences in motivations, investment methods, confidence levels, financial literacy and discouraging factors. Additionally, the survey included an open-ended section that allowed respondents freely share their opinions and experiences on the topic of investment participation, providing deeper insights to support the quantitative findings.
The research indicates that increasing investment participation in Finland requires a well-planned strategy. The approach should incorporate increased financial education, greater accessibility, and a gradual cultural transformation to being more open with financial matters. Financial literacy needs to be enhanced, digital investment tools simplified, policy and regulatory structures adjusted to support participation. In addition, investing should be encouraged through social promotion and public discussion to allow Finland to become a more investment-oriented society. Together, these actions can create a more inclusive financial environment that supports long-term participation and confidence in investment activities.
The author suggests that the topic could be further researched with a qualitative analysis, stronger representation of the non-investors with more specific demographic information. Also, an actual comparison to Finland could be included with other Nordic countries or investigation of new technological impacts on investment participation could provide deeper insights into the factors shaping individual financial behaviour.
The theoretical framework of this study focuses on behavioural finance theories and concepts, and structural and institutional factors that are used for analysing investment participation in the Finnish context. These perspectives offer a deeper understanding how individual decision-making, psychological influences, financial literacy, access to digital platforms, trust, regulation, and demographic factors that together affect investment decisions behaviour. The framework provides a well-grounded foundation for understanding different levels of participation across groups and what solutions could improve engagement in the financial markets.
The research was carried out using quantitative research methods. Data were collected through an online survey (n=174), which was targeted for both investors and non-investors across Finland aged 18 and above who manage their own financial matters. The survey studied these two groups separately to identify differences in motivations, investment methods, confidence levels, financial literacy and discouraging factors. Additionally, the survey included an open-ended section that allowed respondents freely share their opinions and experiences on the topic of investment participation, providing deeper insights to support the quantitative findings.
The research indicates that increasing investment participation in Finland requires a well-planned strategy. The approach should incorporate increased financial education, greater accessibility, and a gradual cultural transformation to being more open with financial matters. Financial literacy needs to be enhanced, digital investment tools simplified, policy and regulatory structures adjusted to support participation. In addition, investing should be encouraged through social promotion and public discussion to allow Finland to become a more investment-oriented society. Together, these actions can create a more inclusive financial environment that supports long-term participation and confidence in investment activities.
The author suggests that the topic could be further researched with a qualitative analysis, stronger representation of the non-investors with more specific demographic information. Also, an actual comparison to Finland could be included with other Nordic countries or investigation of new technological impacts on investment participation could provide deeper insights into the factors shaping individual financial behaviour.