Investing is ‘a tough sell’ for young people since pandemic, says new AJ Bell chief
Investing has become a “tough sell” for younger generations grappling with the cost of living crisis, bringing to an end the coronavirus-era boom in young people jumping into the markets, according to the new head of one of the UK largest investment providers.
Michael Summersgill, who this month succeeded founder Andy Bell as chief executive of AJ Bell, said the squeeze on incomes from inflation and plunging markets this year have contributed to a significant slowdown in customer growth, especially among younger cohorts.
The FTSE 250 group last year announced a bid to target investors in their 20s and 30s with a zero-trading-fee investment app, called Dodl, capitalising on a global surge in client growth for do-it-yourself investment providers as people put their enforced lockdown savings to work in booming markets.
Summersgill is set to pursue a different strategy from some rivals, including market leader Hargreaves Lansdown, that are trying to add services such as financial advice for their older and wealthier clients.
“I think a number of the competitors are looking at the higher end of the [direct- to-consumer] market and saying how can we offer them supplementary services,” he said. “Whereas we are looking at the other end of the market and saying how can we go for a broader group of customers.”
He also plans to invest in branding, in a bid to change the image of investing for a new generation of customers.
“I think it is seen as this grey, dull, impenetrable world for people. If we can actually tap into some of the positive emotion . . . then I think that we could make some headway.”
This story originally appeared on: Financial Times - Author:Joshua Oliver
