Retail Investor Journey Joint Position Paper

SweFinTech has signed a position paper together with European Digital Finance Association regarding ESMA Call for evidence on the retail investor journey: understanding retail participation in capital market.

In line with the Commission’s ambition to foster a safer, more inclusive and efficient retail‐investor ecosystem, we propose the following foundational principles:

A consumer centric approach

FinTechs, and in particular regulated crowdfunding platforms, must embed robust consumer-protection safeguards at every stage of the investor journey. This includes transparent disclosure of risks, clear fee structures and enforceable complaint‐handling procedures. By prioritizing investor rights and recourse mechanisms, platforms can build trust and reduce the incidence of mis-selling or information asymmetry.

Promotion of financial literacy

Crowdfunding and FinTech solutions should proactively support retail investors in understanding both the opportunities and risks inherent in alternative finance. We encourage the development of interactive learning modules, risk-profiling tools and scenario-based simulations that empower individuals to make informed decisions in line with their personal circumstances and risk appetite.

Enhanced financial inclusion

One of the core promises of digital finance is to broaden access to capital markets. FinTech platforms can lower traditional entry barriers—such as high minimum investments or geographic constraints—enabling a more diverse investor base to participate. We urge policymakers to recognise and preserve these inclusion-enhancing features, while ensuring that all market participants benefit from equivalent levels of protection.

Efficient allocation and portfolio diversification

Leveraging advanced data analytics, algorithmic matching and automated portfolio construction, FinTechs can steer retail investors toward diversified, risk-adjusted baskets of opportunities. We advocate for the standardisation of product classification and the interoperability of investment interfaces, so that retail investors can readily compare and combine offerings across multiple platforms, maximising both efficiency and resilience.

Read the position paper here!