The 2020 UK Savings Statistics revealed that an average UK citizen had saved £6,757, while Adult ISAs fell from a previous £6,466 in (2017-18) to £6,049 (2018-19). The findings also indicated that the average amount placed in investment programs rose from a previous £994 to a current figure of £1,020. Even if minimal, the latter info indicates that UK citizens are now making conscious efforts to improve their personal finance by placing their savings in passive investment programs.
Moreover, the report also showed that the number of Adult ISAs had increased to more than 11 million (2018-19), when compared to the previous 10 million plus in 2017-2018. The UK’s Individual Savings Account (ISA) program for one allows citizens to hold cash, shares, and a mixture of securities by way of unit trusts; whilst earning extra by way of tax-free dividends, capital gains and interest income.
Even more encouraging is that the number of Junior ISAs is also rising, as statistical data indicate that nearly 50,000 additional accounts were opened in 2018-19. Apparently, there is an increased number of British parents who are also investing for the future of their children.
UK Citizens are Overcoming Their Lack of Confidence in Investing Their Money
Financial service providers believe that one of the things that is holding back other Britons from investing their saved money is their level of financial literacy. According to a 2017 survey study commissioned by Bank of Leumi, nine (9) out of ten (10) UK think that they are undereducated when it comes to personal finance, more so when it comes to investing.
Due to this knowledge gap, fintech innovators have made their services more transparent and easier to understand. That way, more consumers will have greater confidence in placing their money in passive investments once they have a better understanding of their options.
One such UK fintech firm that has taken this initiative is True Potential Investor a digital wealth management company based in Newcastle City upon Tyne.
In 2014, the firm collaborated with the Open University to establish the True Potential Center for the Public Understanding of Finance. The goal is to provide public education about savings and investments to help UK adults map out financial plans for a better future. The center’s free personal finance courses have since become very popular among adult Britons looking to improve their financial literacy.
A Quick Glimpse at True Potential Investor
Using a True Potential Investor review published in the Ask Traders website as reference, we learned that this digital investment management company was founded in 2007 by a group of professionals with extensive experience in providing investment management services and developing financial services technology. The company has made it their mission to help UK citizens grow their savings. Doing so will empower the latter to easily meet goals of saving enough funds that will enable them to settle in comfortable retirement in the future.
True Potential Investor (TPI) provides a user-friendly robo-advisor platform with mobile app support. Unlike other providers of fully-automated services, those looking to invest their money with TPI can try out the digital investment services even for a minimum amount of £1. Once an account is set up online, a TPI member can choose any of three types of savings account, namely:
- Stock & Shares Individual Savings Account (ISA),
- General Investment Account (GIA)
- Personal Pension Account.
Based on a TPI member’s investment risk preference, they will further select one of five options deemed as the suitable portfolio management approach for their savings account. The five portfolio options are labeled according to the type of risk involved, namely: Balanced, Cautious, Defensive, Growth and Aggressive.