Holly kicked things off with a thoughtful glance back at the evolution of DIY Investing. From the emergence of heavyweights such as Hargreaves Lansdown and Willis Owen in the 80s, to the avalanche of robos such as Moneybox and evestor today, the market has come a long way. For everyday consumers, it’s easier and clearer than ever to get started and have a go. And as for the UK market itself, we’ve gone from Thatcher Economics to Brexit… with everything that entails!
Today we're looking back at #investing2018 & discussing what 2019 may hold. Here's a graphic from @HollyAMackay, tracking the evolution of DIY Investing in UK, all the way from @HLInvest & @WillisOwenLtd to newbies @evestoruk & @moneyboxteam! #roboinvesting pic.twitter.com/x8buCLWyiM— boringmoney (@boringmoney) December 3, 2018
Thanks to all your consumer reviews we’re able to tell the industry what works and what doesn’t. So who would our readers recommend to new customers? Who delivers the best value? And does anyone have a 100% recommendation rating? Yes, actually…
Who do our readers recommend most? We're looking back at #investing2018 this afternoon at @Schroders' new offices & summarising the stars of our 1,500+ reader reviews. Of these providers @HLInvest, @AJBellYouinvest & @thenutmegteam score highest amongst platforms with 60+ reviews pic.twitter.com/AQ6mAe9Hdt— boringmoney (@boringmoney) 3 December 2018
If you’ve not left a review yet and want to be heard, spill the beans here. Future customers will be forever grateful!
Chief Exec of Interactive Investor, Richard Wilson shared his predictions for customer acquisition in the years to come. Some bold views in our opinion, but probably a bit boring if you’re not a finance bod, so let’s leave it at this: DIY platforms currently do well for people who have large pots of money and know what they’re doing, but they need to work harder for beginners with smaller pots. For these investing newbies, the industry needs to experiment with gamified tools, education programmes, and fixed fees that actually make sense.
Next up was everyone’s favourite investment trivia gameshow, with Quiz Master Mackay. In the room, we crowned Harriet Mann from Moneyfarm as the Investment Trivia Guru, with a solid 7 out of 10 correct answers. On Twitter, many of you joined in too. But did you get the answers right?
And now it's time for our Boring Investment Quiz of the Year at our #investing2018 event, kindly hosted by @Schroders. For those playing at home: Which global index as produced the highest YTD in 2018?— boringmoney (@boringmoney) 3 December 2018
We're currently playing for prizes in the Boring Investment Quiz of the Year at our #investing2018 event. For players at home: Which of the following S&P500 stocks produced the best YTD performance in 2018?— boringmoney (@boringmoney) 3 December 2018
Want to play the Boring Investment Quiz of the Year at home? We'll be crowning the winner later at our #investing2018 event, but you can still vote from home! The robo market has grown to £2.3 billion, but how many customers does it hold?— boringmoney (@boringmoney) 3 December 2018
Clarity for the customer was top of the Schroders MD's agenda: making everything black and white with clear guidance, no baffling jargon, and above all a sense of humanity. People still prefer to deal with humans when it comes to managing their savings, so despite the influx of new investors using robos, there still needs to be a balance between goal-oriented human advice and seamless, accessible tech. How much of a balance? That should be up to the consumer.
#investing2018 @jamesrainbow1 @Schroders “Mrkt needs more focus on the advice space from tech + people perspective. People like dealing with people, but enable the advice with tech to ensure the advice process is smooth. Give your customers choice” pic.twitter.com/Rvo1M7WH3G— Becca Cassar (@BeccaAltus) 3 December 2018
The basics of good comms comes down to “talk like a human”. But @HollyAMackay has pointed out if you’ve been saying ‘crepuscular’ for 10 years it’s hard to unlearn. And you won’t necessarily realise that most humans say ‘at dawn’.— Joe Craig, Quietroom (@JoeCraigQR) 3 December 2018
Continuing the emerging theme of fully digital investment experiences versus flesh-and-bone relationships, the founders of Moneybox, Fountain and Dabbl discussed fintech’s role in improving investor confidence.
We're hearing today from Ben Stanway of @moneyboxteam, Dann Bibas of @FountainMoney & Mark Ackred of @dabblinvest, at our #investing2018 event. How can #fintech & #roboadvisers engage a new group of investors, which more traditional platforms often fail to reach? pic.twitter.com/JoZFyc1szG— boringmoney (@boringmoney) 3 December 2018
Dann Bibas from Fountain shared that, in the early days, it was easy to get caught up in creating a cool digital product with all the bells and whistles, but people still want people. After all, the number one comment from new investors who've just met with a financial adviser (a finance bod human who’s able to consider an individual’s financial goals and personal motivations) is “I feel more confident”. That’s what digital advice need to achieve too - so hybrid models may hold the answer.
Dabbl’s Mark Ackred echoed this feeling. Many young people get stuck when trying to choose a fund that suits them, and some give up altogether. But in the absence of personalised advice, there is another secret weapon: the knowledge people already have. Although 96% of young people have no investments at all, 53% said they’d be interested in investing in brands they know, such as Netflix or Amazon – possibly because they already feel confident that those businesses will grow.
Ben Stanway of Moneybox fame called it his 'mission' to help this under-informed generation. Even in business school, he claims, young people learn about fiscal theories but not how a pension actually works or the impact of compounding. So what hope do normal, non-financial people have? The solution could be to move away from corralling people towards debt products, and to instead hold their hands and make it real. ‘How do you invest for a new home’, not ‘how do you make a 5% gain over 5 years’.
Ben Stanway, co-founder of @moneyboxteam, says people want help planning for good outcomes - they don’t want you to focus on the ins & outs of the process. Totally agree. Sure way to switch people off is bamboozle them with your clever workings.#investing2018— Joe Craig, Quietroom (@JoeCraigQR) 3 December 2018
These guys are disrupting, these guys are refreshing. Young fintech and old financial bigwigs can learn a lot here in my opinion @dabblinvest @moneyboxteam @FountainMoney #investing2018 pic.twitter.com/yhkL35wQpA— Carmel Dickinson (@carmel136) 3 December 2018
Our guests gave us lots to look forward to. And lots to think about. But far from being done with shifting the industry’s perceptions, Holly's closing comments gave us all one final glimpse of what people really want from their investments…
So @boringmoney asked people what one thing would get them to invest.— Joe Craig, Quietroom (@JoeCraigQR) 3 December 2018
Offering 15% returns? No. Wayyyyy above that: talk like a human.
Music to the ears of a language specialist. Use your language to build TRUST.#investing2018 pic.twitter.com/lIikqUEnsf
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