Banks to lead advertising campaign promoting retail investment
Several major financial services firms will spearhead an advertising campaign aimed at encouraging more consumers to engage in retail investing.
Chancellor Rachel Reeves has launched a new drive to urge savers to back the UK economy by putting more money into stocks and bonds, as part of the government’s broader initiative to stimulate the UK economy through increased saving.
Barclays, Lloyds, HSBC, NatWest, AJ Bell, Schroders and St James’s Place have all signed up to lead the new advertising campaign and promote the benefits of retail investing.
As part of the initiative, the companies will reach out to customers, provide information on investment opportunities and how to move money from savings accounts into stocks and shares.
The Investment Association will help to drive the campaign and regulators will offer guidance. Meanwhile, the government will seek to fix a “tangled system of financial advice” and “lengthy risk warnings” that have discouraged UK retail investors.
Treasury officials highlighted that, based on current trends, stocks and shares have outperformed traditional cash savings. For example, a £2,000 investment today could potentially grow to around £9,000 more than the same amount left in a savings account over 20 years.
The campaign is part of a wider package of measures known as the Leeds Reforms, aimed at strengthening the UK’s financial services sector.
The reforms, which are set to be unveiled during Rachel Reeves’ Mansion House speech, will target a doubling of the real growth rate in financial services net exports over the next decade.
City Minister Emma Reynolds said the Leeds Reforms would position the UK as the “best location” for investment by removing barriers to entry and unlocking growth.