Challenger fintechs vie to turn Britain’s rising investment curiosity into long-term savings

As Britain’s investing conversation shifts from the margins into mainstream debate, the platforms that sit between savers and the stockmarket are racing to convert curiosity into long-term customers. Established firms such as Hargreaves Lansdown, AJ Bell, interactive investor and Fidelity still occupy the high-ground of trust built over decades. But newer, tech-led challengers with app-first interfaces, low fees and splashy marketing have transformed the landscape and are pressing the advantage as ISA season approaches.

“Investing is something that’s being spoken about a lot now, but five years ago it wasn’t the case,” Jordan Sinclair, president of Robinhood UK, told The Independent. “In Norway or Sweden, they have a great culture of saving regularly, and they have tax wrappers which look a lot like our ISA. But what’s probably missing versus Sweden is how do you educate people on how to use that? How to think about their money, where to invest it.

“Some of our research shows that the average amount people believed you needed to start [investing] was over £2,200. Just to start.

“When you look at some [legacy providers], and they have a minimum amount £500, account fees, £11.95 for the first trade… you can’t blame people for saying ‘I’ll just leave it in my cash account’.

“We see an opportunity to level the playing field, catch up to some of those countries – and we’ll do it in our own way, maybe with still a slight bias towards cash savings but some of the money will be working much harder for customers.”

Robinhood’s wider UK roll-out, announced in March 2024, and its planned stocks and shares ISA are emblematic of that strategy. According to Robinhood’s own waitlist page, UK customers who join the ISA waitlist and meet eligibility criteria can enter a promotional £100,000 giveaway, with five winners each receiving £20,000; the waitlist closes on 23 January. The company says the ISA will offer tax-free investing with no account fees to open, although it cautions that capital is at risk.

Other fintechs are moving to the same space. Revolut, for example, has launched its first stocks and shares ISA for UK customers, offering access to exchange-traded funds from providers including BlackRock and Vanguard, and allowing annual contributions from £1 up to the £20,000 ISA allowance, according to MoneyWeek. Such moves position challenger firms to compete directly with legacy providers for long-term savers and ISA flows.

The competition comes at a moment of policy nuance. HMRC confirmed that cryptocurrency exchange-traded notes (cETNs) were eligible for inclusion in stocks and shares ISAs from 8 October 2025, following the Financial Conduct Authority’s lifting of a retail ban. But that eligibility is temporary: HMRC and subsequent reporting make clear cETNs will transition to qualifying investments under the Innovative Finance ISA (IFISA) from 6 April 2026, forcing holders to liquidate or transfer positions unless further clarification or grandfathering is enacted. MoneyWeek warned that this six-month window risks forced disposals during volatile markets and complicates tax-efficient crypto exposure for retail investors.

Industry commentators and platform chiefs argue that a renewed focus on financial education must accompany product launches. Regulators, firms and the Treasury are being urged to collaborate on consumer education initiatives and to reconsider how risk warnings and access to higher-risk products are handled. Sinclair told The Independent that revisiting risk warnings and “educating customers rather than scaring them away” should be part of the push to build a more investment-aware public.

That tension , between widening access and preventing harm , is acute on so-called everything apps. New users enticed by simple onboarding and low headline fees may find themselves a single tap away from complex products such as futures, leveraged derivatives, CFDs, FX trading or copy trading. Critics argue many of these instruments are unsuitable for novices unless access is gated by demonstrated competence or mandatory education.

The commercial imperative is clear: save, convert, and retain customers over many years. For incumbents, that means refreshing brands, launching spin-off businesses and introducing more competitive pricing. For challengers, it means converting app downloads into funded accounts and, ultimately, ISAs. Industry data and recent active-stock portfolios suggest potential upside for engaged retail investors: a MoneyWeek review of its 2025 portfolio said it delivered an average 35% return that year, beating the FTSE All-World index’s 19.5% and producing strong multi‑year gains for a number of selections. The same analysis recommended a fresh set of cash-generating, growth-oriented stock ideas for 2026, while reminding readers to carry out their own research.

Policymakers have signalled they want more of the public to invest for the long term , a theme picked up in government announcements following the Budget , but the means of doing so will determine outcomes. Platforms must balance marketing that attracts first-time investors with safeguards that prevent costly mistakes, and regulators must provide clarity on what instruments belong in tax-advantaged wrappers. As ISA season and promotional campaigns ramp up, the next year will show whether Britain can accelerate a culture of long-term investing without amplifying the very risks education aims to reduce.