The number of women using Moneyfarm doubled in the first half of the year, reversing a historic trend, though they still make up the minority of the retail platform’s clients.
In its half year results, announced today (August 25), the company said women now account for 32 per cent of its active investors, nearly double that in the first half of 2021.
In the UK, these women are focusing on the platform’s SRI (socially responsible investment) portfolios, with Moneyfarm reporting a 287 per cent increase in the number of female customers opting for these profiles.
Women have historically been under-represented on DIY platforms, with figures from 2020 showing that men made up 70 per cent of Interactive Investor’s customers, and two-thirds of those on Hargreaves Lansdown’s platform.
The investment industry is set to lose out on £2.36tn of global investment unless it becomes more inclusive.
According to a report from BNY Mellon, if women were to invest at the same rate as men, this could have a significant and lasting effect on the investment industry worldwide.
However, research from Janus Henderson earlier this year showed that women start investing three years earlier than their male counterparts.
Meanwhile, the number of millennials (those aged 28 to 42) using the platform rose 53 per cent in the first half of the year, with the age group now representing 43 per cent of customers.
Some 27 per cent of users are generation X (aged 42 to 57), and 12 per cent are baby boomers (aged 57 to 75).
Moneyfarm said this confirmed the growing interest of younger and more experienced savers in digital solutions “as an alternative to more traditional options”.
Co-founder and chief executive of Moneyfarm, Giovanni Daprà, highlighted the need for saving for the long term.
“With the current cost of living crisis and inflation impacting everyone, it is comforting to know our clients have continued to top up their investments.
“This is also despite market volatility, which I believe is driven by our customers working with their investment consultant and being aware of the importance of remaining faithful to their long term investment plans by investing even more over time.”
The results showed strong inflows to the platform, with assets under management growing 46 per cent to £2.3bn, and a 36 per cent rise in inflows.
Some 20,000 investors signed up to the platform in the first half of the year, bringing the total number of users to 530,000, of which 90,000 are active investors.
The half-year results are the first since M&G led a £44.1mn funding round in the app, with the aim of creating an M&G Wealth-branded digital investment service for UK retail customers.
M&G acquired a minority stake in Moneyfarm in the first quarter of the year, after the deal was announced in January.
Staff numbers at Moneyfarm have continued to grow, with 65 people joining the company in the past year, with a further 25 added by the end of the year, taking the total number of employees to 220.