TECHNOLOGY
seeing that two-thirds of our total customer base invest through this journey . Since the launch , we ’ ve seen a large increase in novice investors . In September 2022 , the number of customers joining our investment platform had more than doubled compared to the same month last year .
“ Another big priority for us is ensuring investing is affordable . We have reduced the entry point to investing to £ 50 to create an accessible entry point for more people . We know that one of the barriers to investing is the perception that it is for the wealthy and a lump sum is required to get started – we want to combat this .”
Yumika Brewster , COO at retail investment community Finimize , summarises the progress towards democratising wealth management : “ Commission-free trading , fractional shares , app-based platforms – all these features mean that investing is less for high-net-worth individuals , who can call up their broker everytime they want to buy something . But you need access to the knowledge to start , and that , unfortunately , is still much more prevalent in privileged and wealthy groups .”
“ A majority of people are uncomfortable with the concept of computer-driven financial advice ”
How important is education in popularising investing ? “ Education is 100 % the key to getting more people financially engaged ,” Brewster continues . “ I view investing as a way to catalyse your financial prosperity . Leaving your money in a low-interest savings account – or worse , your current account – means your money is literally losing value with inflation where it is , but if you don ’ t get exposed to these principles and philosophies , it can be so overwhelming that you don ’ t even know where to start . Engaging education is really the only way you can take people on the journey of financial freedom .”
There is a sense within investtech circles that , although fintech has given consumers the means to invest , there is still a knowledge gap when it comes to ‘ everyday ’ retail investors . Clearly , appetite exists – eToro , Robinhood , Stash and Investing . com have amassed more than 20mn downloads across iOS and Android in the past 12 months , according to app intelligence company Apptopia . Yet , despite having the means to invest , many consumers feel they lack the confidence or expertise to make informed investing decisions .
Jason Hollands , Managing Director of Bestinvest , agrees that education is massively important . “ For most people , investing is
JASON HOLLANDS MANAGING DIRECTOR , BESTINVEST
120 January 2023