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Hargreaves Lansdown owns 43% of online assets, vs robo advice at 1%

Data from Boring Money concludes it’s still early days for robo.

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Data from Boring Money concludes it’s still early days for robo.

As the online investments market grows, so does the opportunity for change. Total online investment assets has now reached £192.4bn, an increase of 17 per cent from 2016.

The top five big companies still command almost three quarters of the market share, with leader Hargreaves Lansdown coming in at 43 per cent of the total market after increasing its assets under management (AUM) by 21 per cent in 2017.

The direct-to-consumer platform Interactive Investor came in second at 10 per cent of the market share, with Fidelity, Barclays and Alliance Trust Savings rounding out the group.

On an optimistic note, Boring Money has found robo advice to be the fastest growing segment of the market, increasing its total AUM by 133 per cent compared to the year before.

However the sector has still yet to make a significant impact, coming in at commanding just 1 per cent of the total market share.

The news comes after a report from PwC suggested that incumbent wealth management firms need to "embrace technology" to keep up with digital disruption.

In the face of uncertainty in the wake of Brexit and the upcoming MiFID II, the level of adoption of new tech within firms "will determine if they win or lose in this fast-changing landscape”.

Holly Mackay, chief executive of Boring Money, said: “The Big Boys still dominate the pack.

 “Yet against this backdrop of growth, the anecdotal evidence of investor nervousness we hear, caused by high markets and tales of impending doom, is reinforced by greater cash holdings this quarter which form 9 per cent of all non-advised assets under administration with online propositions. 

“This most unloved bull market continues.”

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