Online DIY investment predicted to grow by over £100bn in five years

UK platform and robo chiefs predict an increase in assets of over £100 billion over the next 5 years

 

A survey of the CEOs and Directors of leading DIY investing platforms and robos suggests that today’s DIY investing market will grow by over £100 billion over the next 5 years. This is a near-50% uplift on the £209bn the industry currently holds.

 

The BoringMoney.co.uk survey showed:

 

  • 57% of CEOs and Directors predict assets will reach over £315bn over the next 5 years

 

Although significant growth is anticipated in the future, today’s uptake of robo-advisers remains small. There was £2.3bn managed by UK robo advisors as at Q1 2018. Nutmeg has around half of this market today.

 

  • A further 36% of CEOs and Directors forecast more modest asset growth of £252bn-£314bn

 

When we expanded the view to the broader opportunity for European digital wealth assets, over 60% of those surveyed predicted that the robo advice market in Europe by 2025 will be worth €1-€2 trillion.

 

Holly Mackay, founder of BoringMoney.co.uk, comments: “Although robo advisers retain a tiny market share today, we think that Robo Mark 2 has the potential to accelerate growth. The focus will shift from the provision of online decision trees leading consumers to a pre-packaged portfolio, and move more towards advice”.

 

She continues: “If the banks and life companies can crack this space, this will also fuel growth. But that’s a big ‘If’. They are typically slow and hamstrung by committee-think so this needs to be a story of specialist partnerships and collaboration rather than a solitary offense as in the past.”

 

BoringMoney.co.uk’s own forecast for the DIY digital wealth market in the UK is £385bn over the next 5 years, representing growth of 84%.

 

 

ENDS

Notes to the Editors:

 

www.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. www.boringmoney.co.uk is not regulated to give personal financial advice, nor is it regulated by the industry watchdog.

 

The survey canvassed opinion from 17 CEOs and Directors of platform and robo businesses which together look after more than £200bn of UK assets.

 

This was part of a bigger report into the UK Digital Wealth market which includes consumer research (qual – deep dive interviews and focus groups - and quant – 6,000 UK adults). More detail about this report and its findings are available from Boring Money.

 

  1. How big do you think the UK’s DIY Digital Wealth Market will be in 5 years’ time?

2. How big do you think the European digital wealth market will be by 2025.