Investors tend to change platforms pretty rarely, and with good reason – platforms often look like much of a muchness, and there are plenty of horror stories out there about delays and disputes. But switching doesn’t have to be a pain, and both the regulator and the industry have committed to improving matters in the months ahead.
Recent data doesn’t indicate a thriving switching market. The 2022 Financial Lives study by the Financial Conduct Authority (FCA) found that just 5 per cent of the 2,200 savers surveyed had switched platform in the previous 12 months.
This figure is a little misleading: a separate question in the survey found that a considerably lower proportion of users (71 per cent) were satisfied with their existing platform. On one level, this isn’t surprising: current account surveys might find a similar gap. Inertia, after all, is a powerful force. Investors, through little fault of their own, have good reason for thinking a move isn’t worth it. Switching can involve time out of the market, the administrative burden can be significant, and the overall transfer time can quickly add up.