1 in 3 new DIY investment accounts opened is with a robo adviser

New research from independent research and consumer insight consultancy for the investment industry Boring Money, reveals that customer acquisition in the robo advice sector is outstripping that of bigger online investment platforms.

  • Q3 2018 saw the online DIY investment market in the UK hit £223.85 billion.
  • This is an increase of 2.7% over the quarter and 15.4% over the last 12 months.
  • Customer DIY investment accounts are up 22% for the last 12 months
  • By way of comparison, the FTSE 100 fell by 0.7% over the quarter and grew by 6.1% over the year.

The top three players dominate the market as consolidation kicks in

Hargreaves Lansdown retains its dominant market share of the online DIY investment market at 42%. The acquisition of Alliance Trust Savings by Interactive Investor takes the combined market share of these two groups to 13%. The next largest player is Fidelity with an 8% market share.

 

Customer numbers increase gradually

Growth in terms of customer numbers remains modest. There are now 4.77 million customer accounts in the DIY online investing market, an increase of 22% (over 800,000 new accounts) over the 12 months to September 2018.

Boring Money CEO Holly Mackay comments,

This is certainly an evolution, not a revolution. Over the last three years we’ve seen about 1.8 million new DIY accounts being opened, and about one in five of these was with Hargreaves Lansdown. Although the robo advisers have a small percentage of the assets pie today, they are punching above their weight in terms of customer acquisition. Almost one in three new DIY accounts opened over the last 12 months was with a robo adviser.

Mackay adds,

This is not as triumphant a story as it might seem, as of course the average DIY account size remains a lot lower than the more traditional providers, whist acquisition costs remain broadly similar. So, the proof of the pudding for the robos will be consolidating accounts and increasing average balances, having worked so hard to get these customers on board in the first place.

 

For more information about market stats and growth across individual providers, Boring Money has a Quarterly Data Digest https://www.boringmoneybusiness.co.uk/research/research-reports/quarterly-data-digest/

ENDS

 

Notes to Editors:

Boring Money collects data on a quarterly basis from online direct-to-consumer investment providers. This data is correct as at September 2018. The research covers traditional platforms, life companies, banks, asset managers and robo advisers.

For media enquires please contact:

Vicky Taylor, Koozai

vicky.taylor@koozai.com

07446650521

Cara Whitehouse, Boring Money

cara@boringmoney.co.uk

02038712524

 

About Boring Money:

(www.boringmoney.co.uk) BoringMoney.co.uk 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 19 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.