In this paper, we estimate the potential opportunity for the investment platform market in the UK: the total assets that could ultimately end up on platforms.
Total GB wealth was estimated by the Office for National Statistics (ONS) at £14.6tr as at March 2018. We take this as a starting point, and exclude assets that will never move to platforms (e.g. property and physical assets), to arrive at a soft target number. We then remove assets that are unlikely to move (largely defined benefit pensions) to arrive at a hard target market. We adjust the hard target upwards by £500bn to account for estimated underreporting in the ONS survey.
We conclude that the soft target market is £5.3tr, of which only 13% is already on platforms. The hard target market comes out at £2.5tr, of which £700bn (28%) is already on platforms, leaving room for the platform market to grow three-and-a-half-times. We estimate that this market will grow at 5-6% pa.