Imagine if the smartest financial advice didn’t come from a lone expert, but from the collective insight of thousands of everyday Australians. That’s the promise of the ‘wisdom of crowds,’ a concept increasingly powering the way we invest, save, and design policy in 2025.
First coined by James Surowiecki in his 2004 book, the ‘wisdom of crowds’ refers to the phenomenon where large groups of people, when asked to solve a problem or predict an outcome, often outperform individual experts. In finance, this idea is gaining traction as technology platforms allow mass participation in decision-making—whether that’s through crowdsourced investment analysis, peer-to-peer lending, or even the design of government programs.
But this isn’t just theory. In 2025, Australia is seeing the wisdom of crowds play out in real-time, from the ASX to Canberra’s policy corridors.
Retail investors have never been more empowered. Platforms like Selfwealth and Sharesight allow users to aggregate and analyse thousands of trades, providing a data-driven snapshot of market sentiment. In 2025, the Australian Securities and Investments Commission (ASIC) reports that over 40% of Millennials and Gen Z investors rely on crowdsourced data to inform their strategies—a sharp rise since 2020.
It’s not just investors tapping into group intelligence—policy makers are increasingly using crowdsourcing to design and refine financial regulations. In 2025, the Treasury’s ongoing ‘Digital Finance Dialogue’ invites public submissions and real-time polling to shape crypto regulation, open banking frameworks, and superannuation reforms.
The impact? Policies that reflect the lived experience and diverse needs of Australians, rather than just the recommendations of industry insiders or lobby groups.
Of course, crowds aren’t always wise. Groupthink, misinformation, and emotional trading can lead to bubbles—just ask anyone who lived through the 2021 ‘meme stock’ saga or the 2022 crypto boom-and-bust. In 2025, regulators and fintechs are investing heavily in tools to weed out manipulation and ensure transparency in crowdsourced platforms.
Key safeguards include:
The wisdom of crowds isn’t limited to investing or policy. In 2025, community-driven crowdfunding campaigns have become a major force in financing rooftop solar and battery installations, particularly in regional Australia. Platforms like DomaCom and Birchal allow everyday Aussies to pool resources and fund local energy projects, with investors voting on which initiatives to back based on collective priorities—like sustainability and local job creation.
The wisdom of crowds is no passing trend. In a world where financial decisions are more complex and interconnected than ever, tapping into collective intelligence can lead to smarter, fairer outcomes for everyone. Whether you’re investing, saving, or shaping policy, the crowd’s voice matters—and in 2025, it’s louder, and more powerful, than ever.