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Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Innovation in the Retail Investment Market - UK 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?

Key points included

  • The potential of thematic investing
  • Robo-advisers need to reinforce the message of affordability and accessibility

Covered in this report

This report examines consumer ownership of and attitudes towards investment products. This includes profiling existing investors, the value of their savings and their attitudes towards taking risk with them. Mintel’s exclusive consumer research then looks at consumers’ reasons for investing and for choosing an investment service over another. It also assesses consumer perceptions of different types of investment providers, including a comparison of robo-advisers versus human advisers across a range of activities. Lastly, the Report explores interest in investment themes.

Expert analysis from a specialist in the field

Written by Irene Salazar, a leading analyst in the Finance sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Innovation has a huge role to play in the democratisation of investments. Traditionally an old-fashioned world, consumer and provider perceptions towards automation in investing will be slow to change but a first step is to better communicate the strengths of robo-services when it comes to accessibility and affordability. Beyond technology, a new approach can be explored with thematic investing Irene Salazar
Senior Finance Analyst

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What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
    • Executive Summary

        • The market
          • Drop in sales amid uncertainty
            • Figure 1: Value of gross and net retail sales, 2014-19
          • Stocks and shares ISAs grow in volume and value
            • Figure 2: Average subscription per ISA, by component, 2013/14-2017/18
          • Interest rates and savings ratios remain at historic lows
            • Figure 3: Household savings ratio, 2009-19 H1
          • FCA looks to improve competition on investment platforms
            • Companies and brands
              • Technology and innovation are seen as priorities but also as risks
                • High street banks continue to explore robo-advice
                  • Investment services in the FCA’s regulatory sandbox
                    • The consumer
                      • Stocks and shares ISAs are the most common investment products
                        • Figure 4: Investment product ownership, July 2019
                      • Saving for the long term is the most common goal
                        • Figure 5: Reasons for investing, July 2019
                      • Perceptions are markedly different depending on provider type
                        • Figure 6: Perceptions of selected types of investment providers, July 2019
                      • Human advisers are generally perceived to be superior to robo-advisers
                        • Figure 7: Robo-advisers vs human advisers, July 2019
                      • Fees and pricing are the main differentiator when choosing a provider
                        • Figure 8: Reasons for choosing one investment service over another, July 2019
                      • Majority of investors/potential investors interested in thematic investing
                        • Figure 9: Interest in investment themes, July 2019
                      • What we think
                      • Issues and Insights

                        • The potential of thematic investing
                          • The facts
                            • The implications
                              • Robo-advisers need to reinforce the message of affordability and accessibility
                                • The facts
                                  • The implications
                                  • The Market – What You Need to Know

                                    • Drop in sales amid uncertainty
                                      • Stocks and shares ISAs grow in volume and value
                                        • Interest rates and savings ratios remain at historic lows
                                          • FCA looks to improve competition on investment platforms
                                          • Market Environment

                                              • Drop in sales amid uncertainty
                                                • Figure 10: Value of gross and net retail sales, 2014-19
                                              • … but stocks and shares ISAs grow in volume and value
                                                • Figure 11: Average subscription per ISA, by component, 2013/14-2017/18
                                            • Market Drivers

                                              • Interest rates remain at historic lows …
                                                • Figure 12: Effective interest rates on household deposit balances and official base rate, January 2010-July 2019
                                              • … as is the case with savings ratios
                                                • Figure 13: Household savings ratio, 2009-19 H1
                                              • FCA to improve competition on investment platforms
                                                • Industry examples: the STAR initiative
                                                  • New rules announced for the P2P sector
                                                    • FCA to focus on outcome indicators
                                                    • Companies and Brands – What You Need to Know

                                                      • Technology and innovation are seen as priorities but also as risks
                                                        • High street banks continue to explore robo-advice
                                                          • Investment services in the FCA’s regulatory sandbox
                                                          • Competitive Strategies

                                                            • Technology and innovation are high on established brands’ priorities …
                                                              • … but are also seen as risks
                                                                • Some brands are more specific
                                                                  • Investments and Open Banking: platforms, partnerships and personalisation
                                                                  • Launch Activity and Innovation

                                                                    • Santander and HSBC launch online services …
                                                                      • … with more expected to follow suit …
                                                                        • … but others are moving away from robo-advice
                                                                          • Investment services in the FCA’s regulatory sandbox
                                                                            • Distributed Ledger Technology
                                                                              • Platforms
                                                                                • Other propositions
                                                                                • The Consumer – What You Need to Know

                                                                                  • Stocks and shares ISAs are the most common investment products
                                                                                    • Saving for the long term is the most common goal
                                                                                      • Perceptions are markedly different depending on provider type
                                                                                        • Human advisers are generally perceived to be superior to robo-advisers
                                                                                          • Fees and pricing are the main differentiator when choosing a provider
                                                                                            • Majority of investors/potential investors interested in thematic investing
                                                                                            • Investor Profile

                                                                                              • Stocks and shares ISAs are the most widely held investment product
                                                                                                • Figure 14: Investment product ownership, July 2019
                                                                                              • Investors more likely to have substantial investable assets
                                                                                                • Figure 15: Level of investable assets, July 2019
                                                                                              • Investors are less risk-averse
                                                                                                • Figure 16: Level of comfort taking risks with savings, July 2019
                                                                                            • Reasons for Investing

                                                                                              • Saving for the long term is the most common goal
                                                                                                • Figure 17: Reasons for investing, July 2019
                                                                                              • Investing vs saving
                                                                                                • Investing: beyond saving
                                                                                                  • Majority of investors have more than one reason
                                                                                                    • Figure 18: Repertoire of reasons for investing, July 2019
                                                                                                • Perceptions of Types of Investment Providers

                                                                                                  • Traditional investment providers are seen as experts
                                                                                                    • Figure 19: Perceptions of selected types of investment providers, July 2019
                                                                                                  • Banks are associated with accessibility, convenience and security
                                                                                                    • Online-only platforms and robo-advisers associated with innovation
                                                                                                    • Robo-advisers vs Human Advisers

                                                                                                      • Human advisers generally perceived to be superior to robo-advisers …
                                                                                                        • … except at being unbiased
                                                                                                          • Figure 20: Robo-advisers vs human advisers, July 2019
                                                                                                        • Mixed results across the generations
                                                                                                          • Figure 21: Share of investors/potential investors who say robo-advisers are better than human advisers, by age, July 2019
                                                                                                        • Parents need convincing of affordability of robo-advisers
                                                                                                          • Figure 22: Robo-advisers vs human advisers: making investing more affordable – CHAID tree output, July 2019
                                                                                                      • Reasons for Choosing an Investment Service

                                                                                                        • Fees and pricing are the main differentiator
                                                                                                          • Figure 23: Reasons for choosing one investment service over another, July 2019
                                                                                                        • Accessibility is important to consumers …
                                                                                                          • … and so is the option of micro-investing
                                                                                                            • Reasons for choosing an investment service: TURF analysis
                                                                                                              • Figure 24: Reasons for choosing one investment service over another – TURF Analysis, July 2019
                                                                                                          • Interest in Investment Themes

                                                                                                            • Investors most interested in tech, type of company and industry
                                                                                                              • Figure 25: Interest in investment themes, July 2019
                                                                                                            • Environmental and ethical credentials are appealing
                                                                                                              • Half of over-65s not likely to be interested in theme investing
                                                                                                                • Figure 26: Disinterest in investment themes, by age, July 2019
                                                                                                              • Younger investors more passionate about a single subject
                                                                                                                • Figure 27: Repertoire of interest in investment themes, by age, July 2019
                                                                                                            • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                • Abbreviations
                                                                                                                  • Consumer research methodology
                                                                                                                    • CHAID analysis methodology
                                                                                                                      • Figure 28: Robo-advisers vs human advisers – CHAID Table output, July 2019
                                                                                                                    • TURF analysis methodology
                                                                                                                      • Figure 29: Reasons for choosing one investment service over another – TURF Analysis table output, July 2019

                                                                                                                  This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

                                                                                                                  • Market

                                                                                                                    Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

                                                                                                                  • Consumer

                                                                                                                    Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

                                                                                                                  • Brand/Company

                                                                                                                    Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

                                                                                                                  • Data

                                                                                                                    Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

                                                                                                                  Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

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