Today we publish our report on the size and structure of the D2C market showing a sector that has ballooned to over half a trillion AUA. This consists of direct platform assets but also the wider execution-only market with wealth managers (including the ‘robos’), asset managers, some workplace savings assets and specialist SIPP providers.
Hargreaves Lansdown and Nutmeg hold impressive market shares of their respective sectors but competition is hotting up for both.
There are several interesting dynamics in the D2C world at the moment. Fixed pricing being offered at scale, stockbrokers becoming asset managers and banks bringing online banking and investing together. In addition, we see wealth managers offering a self-directed option but also a route through to financial planning or discretionary services as and when the DIY route is no longer attractive.
It has been argued that ‘robo-adviser’ is a misnomer because they haven’t offered financial advice. That is now changing, with at least nine robos now offering it – in the simplified form. Having grown AUM by 89%, these digital wealth managers are already the fastest growing part of the D2C market and we will see how the advice option resonates with savers and investors.
We will be hosting a client-only analyst briefing on 21st February to discuss these and other findings from this research. Get in touch if you want to join the D2C club!
Download a sample of UK D2C: Market Size and Structure