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NISA Adoption Grows Among Young Investors

The New NISA system, launched in January 2024, has witnessed a noticeable increase in participation, particularly among younger demographics. According to a report published by NTT Data, the survey aimed to assess changes in public awareness and behavior concerning the NISA system one year after its inception. Conducted among 9,400 individuals aged 18 to 69, the results indicate a shift towards greater engagement, especially among young adults.

Background and Purpose of the Survey

One year post-launch, the NISA framework has navigated significant market fluctuations, including a notable stock market decline in the summer of 2024. Given these developments, NTT Data aimed to understand how awareness and account adoption have evolved. This year's survey builds on previous findings from 2023.

Key Findings

1. Increasing Awareness and Utilization

The survey revealed that 27.2% of respondents have experience with the NISA system, an increase of 3.7 percentage points from the previous year. The percentage of individuals unaware of the NISA system decreased to 6.0%, demonstrating improved recognition.

Among participants who opened a NISA account post-January 2024, 24.0% were reported, with notable figures among younger investors: 31.2% of young men and 35.8% of young women (ages 18-29) had established accounts within the year. This trend highlights a growing acceptance among the youth.

2. Preferred Financial Institutions for NISA Accounts

A significant percentage, 52.4%, of NISA account holders opted for online securities and banks as their providers. Traditional banks followed with 14.6% preference, while megabanks and other securities firms garnered 10.6% and 10.1%, respectively. The primary reasons for choosing online services included lower transaction fees and ease of online applications, indicating a strong preference for convenience.

3. Trends in Changing Financial Institutions

Among NISA users, 10.4% reported having switched their financial institutions, while 15.4% indicated they contemplated a change. Most who considered a switch were inclined towards online platforms, driven by cost advantages and better user experiences in online transactions.

4. Investment Behavior Amid Market Declines

During the significant stock market downturn in summer 2024, nearly 75% of NISA investors opted for a passive approach, doing nothing with their investments. Only 7.3% sold their positions, while 12.9% added to their investments. Those utilizing online services were more likely to increase their investments, suggesting a proactive strategy among tech-savvy investors.

5. Financial Education's Impact on Investment Decisions

The survey highlighted a distinct correlation between financial education and NISA usage. 62.5% of NISA users had prior learning experiences regarding financial economics, compared to 75.2% of non-users, who lacked such knowledge. This suggests that education plays a crucial role in fostering investment interest and engagement. Users often engaged in self-study through online resources, books, and social media.

6. Challenges for Non-Users

The main reasons cited for not using NISA included a lack of understanding of the system (14.6%) and insufficient available funds for investment (15.8%). Furthermore, nearly 29.6% of potential users stated they would consider NISA only if they felt the system could be beneficial for them.

Conclusion

The results of this year's survey demonstrate a steady increase in the recognition and utilization of the New NISA system, particularly among younger investors. While adoption rates continue to grow, challenges such as understanding the system and securing adequate investment funds remain. Addressing these educational needs and providing clearer information will be vital for facilitating broader adoption in the future.

For further details, the comprehensive report on the NISA intention study can be accessed through NTT Data's news release page.