Competition in the D2C market is fierce. The RDR was initially expected to lead to an exodus away from financial advice towards self-direction. A plethora of D2C propositions therefore came to market, expecting to cash in. Six years on, while asset prices have risen, we haven’t seen a dramatic influx of new investors.
Many providers serving few investors has driven up customer acquisition costs. Business expectations have had to be reset, platforms have given up hunting for new investors, asset managers are weighing up their options and several robo-advisers have left the market. It’s against this backdrop that we’ve assessed the major platforms on offer. Which offer top notch service? Which are likely to succeed in this increasingly competitive market?
Our annual UK D2C: The Investor Experience report benchmarks leading ‘open-architecture’ platforms for private retail investors. AJ Bell Youinvest retains top position for the third consecutive year, ahead of 12 of its peers. It maintains very competitive platform charges and scores full marks in six categories: investment content, guidance, investment choice, usability, customer service and mobile proposition.
Over the last year, we have observed increasing standards for the leading investment propositions – Interactive Investor and Fidelity Personal Investing have enhanced their services and follow in second and third place respectively. Interactive Investor has shifted its attention onto providing a range of investment analysis and commentary, to entice a wide range of investors. Fidelity Personal Investing has improved its website and mobile apps, which are now far easier to navigate.
For a long time, Hargreaves Lansdown ruled the roost with a more polished service than all its competitors. It continues to have a dominant market share, but with competitors continuously improving and approaching the market at a lower price point, it’s no longer a one-horse race.