Research from TISA and the University of Nottingham suggests that the newly launched Targeted Support framework is most effective when tailored to consumer attitudes rather than broad demographic data.
The study, conducted in conjunction with Barclays, Lloyds Banking Group, and Vanguard, found that attitude-based support can increase investment by at least 30% more than demographic-based alternatives.
The research identified risk aversion, expectations of low returns, and a strong preference for UK-based assets as the primary factors deterring Britons from investing. However, when recommendations were designed to reflect these specific concerns, retail participation rose significantly.
Key findings from the study include:
- Impact on under-represented groups: Attitude-based support led to a 31% increase in investment for women compared to 16% for men.
- New investors: Those who had never invested before showed a 53% increase in allocated investment when receiving attitudinal support, versus 14% for existing investors.
- UK home bias: Individuals with a preference for domestic assets invested 47% more when given a UK-centric, diversified recommendation.
- Consumer trust: A majority of participants followed the recommendations received, reporting high levels of comfort when answering questions about their financial attitudes.
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The new Targeted Support framework, which went live on 6 April, is designed to bridge the gap between generic information and full holistic advice.
Sophie Legrand-Green, head of policy for consumer protection and access at TISA, described the rollout as a “defining moment” that will bring meaningful support to millions.
“This research demonstrates that focusing on attitudes towards investing, rather than broad demographic assumptions, can give people the extra confidence boost to help them become investors,” she said.
Clare Francis, savings and investments director at Barclays Private Bank and Wealth Management, noted there remains over £610bn in excess savings that could potentially be invested. She suggested that Targeted Support could act as a catalyst for “meaningful behavioural change” in the UK’s investment culture.
Industry leaders have welcomed the findings as a blueprint for how firms should develop their digital journeys and support models.
Liz Waldron, head of product and client experience at Vanguard UK, highlighted that nearly six million UK adults have the resources to invest but remain in cash.
“If we meet people where they are, through targeted support journeys that acknowledge how they actually feel about money, we have a real opportunity to help more people achieve their financial goals,” Waldron added.
John Gathergood, professor of financial economics at the University of Nottingham, called the framework the most significant change in retail investing since the introduction of low-cost online platforms. He noted that the research provides the first large-scale experimental evidence that tailoring recommendations to consumer attitudes can substantially raise investment levels.