DIY investing accounts forecast to rise by 16.4% in 2021
A new report published by consumer investment website BoringMoney.co.uk forecasts strong growth in the UK DIY investment market in 2021, with customer account numbers set to increase by 16.4% over the year to almost 7.9 million.
Boring Money also projects continued bullish growth in assets with £AUA forecast to rise by 13.9% to £323 billion by the end of 2021, up from £270 billion as at the end of Q3 2020.
These predictions build on 2020, which has been a year of £AUA growth, all-time highs for customer accounts and higher trading volumes than seen before.
Looking ahead, Boring Money identifies two key consumer segments for growth: cash savers and disengaged, or ‘accidental’, investors.
Boring Money has identified 2.1 million UK adults who hold high levels of cash savings and no investments, who represent a prime target for investment providers. While this audience report themselves as being quite low in confidence, they are nonetheless fairly engaged, with almost half having opened a new cash savings account in the past 12 months. They are also actively open to investing, with 15% saying they want to start over the next 12 months.
Holly Mackay, CEO of Boring Money, highlights this as a key segment for DIY investment and pension providers to tackle.
“The pandemic hit many of us in different ways, however we know that some people saved more money and are sitting on a glut of cash – quite often in a current account,” she says. “With NS&I slashing rates last month, the options for cash savers look pretty grim. This is a renewed opportunity for providers to think about how they talk to this type of potential customer.
“For savers worried about investing we know that tabling an open conversation about risk has to be the entry point – 44% of savers who aren’t considering investing said their primary concern was losing money.”
Mackay concludes: “We expect to see continued interest in DIY investing from a slightly different audience in 2021 – we know that average account balances are falling, as are average ages. Less confident investors are putting a toe in the water. As technology encourages expectations of self-service, as mobile trading increases and as more newcomers enter the fray, 2021 will be won by those groups which focus on ease of use, robust IT and clear, engaging communications.”
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Notes to editors:
Data is taken from Boring Money’s latest report, “DIY Investment in 2021 – insights and data for business planning”, which launches December 3. For more information, visit www.boringmoneybusiness.co.uk/reports/DIYinvesting2021
For further information, please contact:
Cara Whitehouse, PR & Communications Manager
About Boring Money
Boring Money is an independent research and publishing house which provides information, tips and Best Buy tools to savers and investors. It recently raised £900,000 through crowdfunding, with more than 12,000 weekly readers and investors supporting and engaging with the company. The business conducts regular research with industry providers and UK consumers to track the developing DIY investment market from both the customer and provider perspective. Boring Money holds test accounts with over 25 investment platform providers and also holds regular focus groups and interviews with consumers to ensure regular input and feedback from the user perspective.
Founder Holly Mackay has worked in the investment industry for 20 years and is supported by a team of 12 researchers, analysts and marketing execs. Boring Money is not regulated to give personal financial advice, nor is it regulated by the industry watchdog.