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UK Consumers, Saving and Investing market report

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Consumers,Saving and Investing market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

Using Mintel’s exclusively commissioned research this report examines the retail savings and investment market. By looking at consumer attitudes as well as the current market environment this report looks to identify and analyse the major challenges and opportunities for saving and investment providers.

The report looks at ownership and value of savings and investment products, as well as examining people’s current saving activity and their approach to saving. The report then looks into various attitudes towards both saving and investing before finally focussing upon interest in automated advice services.

What you need to know

Growth in the retail savings market has been slow over the last few years, however with interest rates rising, a more competitive savings environment is on the horizon, which should lead to greater savings activity. Some investment products, such as stocks and shares ISAs have increased dramatically in popularity in recent years; however investors are split as to whether they hope to increase their investment activity in the next 12 months.

Expert analysis from a specialist in the field

Written by Douglas Kitchen, a leading analyst in the Financial Services sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Savers who set savings goals are much more likely to remain engaged and also to build savings and investments of significant value. Open Banking platforms and app-based savings providers offer a new approach to saving, with a variety of savings tools which hold strong appeal for Millennials. Incumbent providers looking to serve this group will need to decide whether to develop their own services or to provide access to third party providers through their own platforms. Douglas Kitchen
Financial Services Analyst

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Table of contents

  1. Overview

    • What you need to know
      • Report scope
      • Executive Summary

          • The market
            • 2018 sees slow growth in the retail savings market
              • Figure 1: Total retail savings deposits, 2007-18*
            • Interest rates are set to continue rising, but could be stalled by Brexit
              • Figure 2: UK’s consumer price index, base rate and average weekly earnings growth, October 2008-Sepember 2018
            • UK households are still struggling to save
              • Figure 3: UK households’ cash basis saving ratio and national accounts saving ratio, seasonally adjusted and at current prices, Q1 2014-Q2 2018
            • FCA turns focus to price discrimination and improving switching between platforms
              • The consumer
                • Over 60% have less than £10,000 saved
                  • Figure 4: Value of savings and investments, October 2018
                • 42% save on a regular basis
                  • Figure 5: Current saving activity, October 2018
                • Proportion of savers owning a saving account increases
                  • Figure 6: Savings and investment product ownership, October 2018
                • Nearly half had a savings target in the last year
                  • Figure 7: Saving and investment aims, October 2018
                • Rising interest rates would lead to 48% considering a lesser-known savings provider
                  • Figure 8: Attitudes towards saving, October 2018
                • A lack of confidence hampers investment ownership
                  • Figure 9: Non-Investor attitudes towards investing, October 2018
                • Majority are satisfied with their investment performance
                  • Figure 10: Attitudes towards investing, October 2018
                • Struggling savers are looking for assistance
                  • Figure 11: Interest in savings and investment features, October 2018
                • Consumers are unsure about the benefits of robo-advice
                  • Figure 12: Interest in automated services, by savings and investment aims, October 2018
                • What we think
                • Issues and Insights

                  • Scope to extend reach of budgeting services to boost customer engagement
                    • The facts
                      • The implications
                        • Automated advice services will soon be the norm, but inexperienced investors need convincing
                          • The facts
                            • The implications
                            • The Market – What You Need to Know

                              • Growth remains slow, although rate rises should boost market
                                • Interest rates on an upward trajectory
                                  • UK households are still struggling to save
                                    • High street brands launch their own robo-advice services
                                      • FCA turns focus to price discrimination and improving switching between platforms
                                      • Savings and Investment Market Size

                                        • Retail savings deposits break £1.5 trillion
                                          • Figure 13: Total retail savings deposits, 2007-18
                                        • Cash ISAs halt decline while stocks and shares products continue to rise
                                          • Figure 14: Number of ISAs and amounts subscribed, segmented by component type, 2011/12-2017/18
                                        • Net sales of unit trusts and OEICs fall by an estimated 65%
                                          • Figure 15: Retail sales of unit trusts and OEICs-UK domiciled, 2014-18
                                        • Mixed asset funds account for 50% of all sales in 2018
                                          • Figure 16: Retail sales of unit trusts and OEICs-UK domiciled, by asset type, 2008-18
                                      • The Savings and Investment Environment

                                        • Weekly earnings growth moves above inflation
                                          • Rates are on the rise, but Brexit uncertainty persists
                                            • Figure 17: UK’s consumer price index, base rate and average weekly earnings growth, October 2008-Sepember 2018
                                          • Savings ratio on the rise, but savers are still struggling
                                            • Figure 18: UK households’ cash basis saving ratio and national accounts saving ratio, seasonally adjusted and at current prices, Q1 2014-Q2 2018
                                          • Adviser-led platforms dominate the market
                                            • Figure 19: Assets under administration, by distribution channel, 2013-17
                                          • Major brands are looking to expand into robo-advice
                                          • The Regulatory Environment

                                            • The Treasury Committee launches a new Investment Management Strategy
                                              • FCA publishes discussion paper on price discrimination…
                                                • …and is also looking to improve switching on investment platforms
                                                • The Consumer – What You Need to Know

                                                  • Over 60% have less than £10,000 saved
                                                    • 42% save on a regular basis
                                                      • Proportion of savers owning a saving account increases
                                                        • Nearly half had a savings target in the last year
                                                          • Rising interest rates would lead to 48% considering a lesser-known savings provider
                                                            • A lack of confidence hampers investment ownership
                                                              • Majority are satisfied with their investment performance
                                                                • Savers who have failed to meet their goals are looking for assistance
                                                                  • Consumers are unsure about the benefits of robo-advice
                                                                  • Value of Savings and Investments

                                                                    • Proportion of savers with less than £10,000 is growing
                                                                      • Figure 20: Value of savings and investments, 2016-18
                                                                    • 50% of under-35s living at home have less than £500 in savings
                                                                      • Empty Nesters are valuable customers, but are hard to engage
                                                                      • Current Saving Activity

                                                                        • Millennials are the most active savers
                                                                          • Scope to increase saving activity among Gen X and Baby Boomers
                                                                            • Figure 21: Current saving activity, October 2018
                                                                          • Home owners more likely to commit to saving regularly
                                                                            • Figure 22: Current saving activity, by housing situation, October 2018
                                                                        • Savings and Investment Product Ownership

                                                                          • Savings account ownership is widespread
                                                                            • Figure 23: Savings and investment product ownership, October 2018
                                                                          • Scope to grow investment ownership among mid-range savers
                                                                            • Figure 24: Saving and investment product ownership, by value of savings and investments, October 2018
                                                                        • Approach to Saving and Investing

                                                                          • Just under half have saving or investment aims
                                                                            • Figure 25: Saving and investment aims, October 2018
                                                                          • 69% have met or exceeded their saving or investment aims
                                                                            • Figure 26: Saving and investment progress, October 2018
                                                                          • Inexperienced savers need more help
                                                                            • Figure 27: Saving and investment progress, by value of savings and investments, October 2018
                                                                        • Attitudes towards Saving

                                                                          • Almost half would consider a lesser-known provider
                                                                            • Figure 28: Attitudes towards saving, October 2018
                                                                          • Regular savers are likely to increase their savings activity and keep a lookout for a better deal
                                                                            • Figure 29: Agreement with attitudes toward saving, by frequency of saving activity, October 2018
                                                                        • Non-Investors Attitudes towards Investing

                                                                          • Almost three quarters are uncomfortable putting their savings at risk
                                                                            • Low level investments to attract new customers
                                                                              • Figure 30: Non-Investor attitudes towards investing, October 2018
                                                                            • Millennials are more likely to consider impact of Brexit
                                                                              • Figure 31: Response to the statement ‘recent market uncertainty around Brexit puts me off investing’, by generation, October 2018
                                                                          • Investor Attitudes toward Investing

                                                                            • Investors show a willingness to consider a lesser-known brand
                                                                              • Investors split on whether to increase their investment activity
                                                                                • Figure 32: Attitudes towards investing, October 2018
                                                                              • Majority with savings goal are satisfied with their investment performance
                                                                                • Figure 33: Agreement with attitudes toward investing, by saving and investment aims, October 2018
                                                                            • Interest in Saving and Investment Features

                                                                              • Regular product updates the most popular feature
                                                                                • Figure 34: Interest in savings and investment features, October 2018
                                                                              • Savers who have failed to meet their goals are looking for assistance
                                                                                • Figure 35: Interest in savings and investment features, by saving and investment progress, October 2018
                                                                            • Interest in Automated Advice Services

                                                                              • Consumers split over interest in automated advice
                                                                                • Existing investors are more positive
                                                                                  • Figure 36: Attitudes towards automated advice services, October 2018
                                                                                • Parents with investment experience are strong prospects
                                                                                  • Figure 37: Consumers Saving and Investing – CHAID – Tree output, October 2018
                                                                              • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                  • Abbreviations
                                                                                    • Consumer research methodology