Disruption And Resilience In Finance: Social Media, Online Brokers, And The Entrance Of Retail Investors

The world’s financial system is being disrupted. Several factors add up to trigger this fundamental change, such as financial technology (FinTech) companies or cryptocurrencies. This article focuses on another one of the main disruptive drivers: retail investing. It explores the theory of the citizen-speculator as the ideal mindset and establishes technology, more specifically the internet and social media, as a point of origin. Additionally, it identifies and connects two catalysts, the 2008 financial crisis and the COVID-19 pandemic. This article argues that even though the rise of retail investors is another consequence of financialisation, it represents a reactive act of resilience of common citizens that are trying to adapt to an increasingly financialised environment. It ends with an analysis of a recent example of retail investing’s impact and possible consequences: the GameStop case. As with any other disruptive innovation, retail investing is controversial, it raises questions that are currently being addressed. This article aims to shed some light on this phenomenon