Robo advisers take market share throughout pandemic as younger investor numbers soar
New research from investment information platform Boring Money demonstrates robo advisers ended 2020 with a market share of 19% of all DIY investors, rising from a base of just 0.5% over the last 5 years.
- Robo advisers have 18.9% of all DIY investor customers
- Robo advisers still only have 2.6% of all DIY assets; however this has increased from just 0.1% 5 years ago
- Hargreaves Lansdown has retained a consistent market share of 40% by assets and 22% by DIY investor customers over the last 5 years
- The other larger traditional DIY platforms have lost market share in terms of customer numbers – 3 years ago they were the home for 66% of all DIY investors; today that has fallen to 59%
2020 saw a large increase in both younger and less experienced investors, with 950,000 new customers, bringing overall D2C investor numbers to record-highs of 6.8 million.
Boring Money CEO Holly Mackay comments, “The make-up of a DIY investor has materially shifted over the last 12 months which provides food for thought for the platforms, robos and fund managers who serve this investor.
“People are voting with their feet and backing strong content, good user experiences and strong mobile journeys. The need for clarity and communicating very clearly what new investors might expect is key, particularly for robo advisers who have seen the greatest growth of younger, first-time investors.”
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For further information, please contact:
Mikhail Ismail, Head of Marketing
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.
Sources: data is sourced directly from over 25 leading platforms and robo advisers; data is correct as at 31 December 2020. Boring Money has been collecting data on DIY investment platforms and consumers since launch in 2015.