Direct online investors in UK more than double over three years

11 February;

Consumer financial website Boring Money has today released figures showing that the assets under administration (AUA) for the UK direct online investing market hit £260 billion as at 31 December 2019, an increase of 20.7% over the year.

The number of active customer accounts in the UK has also increased to 5.9 million, up from 5.1 million the previous year.

Boring Money CEO Holly Mackay comments:

With an additional 800,000 accounts opened last year, we are seeing the impact of new entrants, robo advisers and auto enrolment pensions in the market – that there are more smaller accounts than ever. If we look back 3 years, the number of customer accounts has increased by 116%. As the advice landscape continues to shift, the growing importance of the DIY online market is clear.

The impact of these smaller accounts has been to reduce the average account size by over £15,000 over the last three years. The average account size today is £44,139.

The top 10 players remain largely unchanged in 2019 and Hargreaves Lansdown’s market share of 40% still dominates. However, the Q4 figures indicate a slower rate of growth for Hargreaves Lansdown compared to some key competitors, such as AJ Bell Youinvest, where quarterly growth was nearly 2.5 times larger than their arch FTSE100 rival.

The major demographic change is in relation to age – the average age of online investors has fallen from 52 in 2016 to 48 today. However, this still remains a rather male world. Mackay concludes:

66% of all DIY investing accounts are held by men – I’ve been observing this space for 20 years now and it’s a bit depressing we’re not moving this dial. There’s a lot of talk about this in the industry but I don’t see anyone with the necessary clout actively moving this to the top of their To Do list.

2020 Platform Performance

Trying to work out which investment providers have performed well after fees is no easy task.

We've tracked 19 accounts since the first week of January 2018, when we opened a ‘medium risk’ investment fund or portfolio with an initial investment of £500, at each platform.

ENDS

Notes to Editors: 

1. Boring Money is an independent research and content business which provides information, tips and Best Buys to consumers. The business conducts regular research with industry providers and consumers and looks at the developing DIY investment market from both the customer and provider perspective. Boring Money holds test accounts with 30 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 15 researchers, analysts and marketing execs. Boring Money is not regulated to give personal financial advice, nor is it regulated by the industry watchdog.

2. Data has been collected directly from the providers. Boring Money has been collecting this data on a quarterly basis since December 2015.

3. Full findings on the UK online investor market will be released on 26th February at the launch of Boring Money’s new UK report, ‘Online Investing 2020’. Please contact kit@boringmoney.co.uk if you would like to attend. The report will contain market data, provider data and customer research. Boring Money will also be launching their 2020 Best Buy Awards, which include customer ratings and scores in their calculations.

The report combines data from market providers, a nationally representative consumer survey of 6,000 UK adults, a follow-up survey with platform customers, and Boring Money’s secure site test accounts - this is the most comprehensive report available in the UK today. 

  


  

For media enquires please contact:

Please contact Holly Mackay for any follow-up details or with questions.

Holly Mackay, Boring Money

holly@boringmoney.co.uk

07984 609 827

 

About Boring Money:

(www.boringmoney.co.uk)

Boring Money is an independent research and content business which provides information, tips and Best Buys to consumers. The business conducts regular research with industry providers and consumers and looks at the developing DIY investment market from both the customer and provider perspective. Boring Money holds test accounts with over 25 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 10 researchers, analysts and marketing execs. Boring Money is not regulated to give personal financial advice, nor is it regulated by the industry watchdog.

Stay updated

Sign up to the Boring Money
business bulletin

Get monthly snippets of research,
industry developments and consumer feedback.
If you change your mind, you can unsubscribe at any time.