Affluent but disengaged part one: Under 50s are looking for better returns at higher risk
As returns from many cash savings remain low, and traditional investments are seen as complicated or boring, large numbers of younger, affluent homeowners are considering alternative investment opportunities to make their money work harder for them.
A significant target with income and savings
In a brand new piece of research into UK homeowners’ attitudes, we’ve identified an important group of 3.4 million householders. They’re aged under 50, find financial matters boring, but would consider high risk investments for greater returns.
This group are significant due to their high affluence: 45% have a household income in excess of £50,000, and half have over £15,000 in investable assets. But they are an untapped resource due to their low engagement with financial service providers.
Money that’s not under the mattress
So where do they keep their money? Traditional savings and investment channels are of course still used, however alternative investments are much more popular than other audiences:
1 / They are twice as likely to have invested on crowdfunding or peer-to-peer platforms
2 / They are more likely to have invested in buy to let properties
3 / They are less likely to hold cash ISAs than other homeowners
Winning your share
And what can you do to grow share among this group? Well, they’re avoiding traditional products because they don’t understand them or find them boring. You’ll need to entice with a product, brand and message that resonates: something easy, something innovative, something fun.
Overcoming disengagement by finding out what makes these people tick will be key to accessing a greater share of their wealth.
The ways to convert this segment differ by institution. What is important for a high street bank is different for a traditional investment fund, which is different from a newer, alternative investment platform.
Find out more
This is just an excerpt from the wealth of new insights we’ve uncovered. Check back for Part 2 where we look into the implications for the banking sector, and Part 3 that focusses on investment providers.