Following the UK Chancellor’s call in the autumn Budget to turn Britain into a “nation of investors”, new research from trading platform Capital.com suggests the biggest barrier isn’t willingness, it’s understanding.
The company’s latest study, Fear or Fortune: A research report assessing attitudes to investment and risk in the UK, found that eight in ten UK adults feel too nervous to invest online. More than a third cited the threat of scams as the main deterrent. Rupert Osborne, CEO of Capital.com UK, says this anxiety is underpinned by a deeper issue: a widespread lack of financial literacy.
What prompted Capital.com to commission this research?
Osborne: At Capital.com, we’ve always believed that access without understanding isn’t empowerment. We wanted to dig beneath the surface of why so many people in the UK are still not investing, despite record numbers opening accounts in recent years.
The Fear or Fortune report surveyed over 1,000 adults across different investor profiles. What we found was really telling: it’s not that people don’t want to invest; they just don’t feel confident enough to start. For most, the issue is knowledge, not appetite.
The report highlights some stark knowledge gaps. What stood out most to you?
The most striking finding was that nearly nine in ten people think investing in UK-listed shares carries the same risk as investing in crypto. That’s extraordinary. When people can’t tell the difference between blue-chip equities and highly speculative digital assets, it’s clear that we’re dealing with a literacy problem, not a risk one.
We also saw a massive confidence gap. Only 16 per cent of low-level investors said they are very familiar with investing in stocks and shares. Compare that with 54 per cent of mid-level investors who say the same. Confidence builds with experience, but education has to be the starting point.
Why do you think financial literacy has become such an urgent issue for the UK right now?
I think the financial pressures caused by things like the spike in energy bills, weak economic growth, and food price inflation have made people more conscious of how their money works. They know that traditional savings accounts aren’t keeping up with inflation, but they’re not sure what alternatives exist.
We’re also living in an era of information overload, which can be just as challenging as a lack of knowledge. The sheer volume of online content often creates a level of noise that feels overwhelming.
Finally, as the Chancellor recently said when backing new efforts to encourage more people to invest in stocks and shares, there’s a recognition that the health of our economy depends on broader participation in the markets. But if people don’t understand what they’re investing in, they’re not going to engage safely or confidently. That’s where education becomes critical.
How does this knowledge gap manifest in people’s behaviour?
We found that people tend to overestimate risk when they don’t understand it. They lump all forms of investing together under the label “dangerous”. So, they stick to cash savings, even when inflation is eating away at their value.
Interestingly, when we explained concepts like inflation risk during focus groups, people’s attitudes shifted immediately. Once they realised that doing nothing also carries risk, they became more open to learning about investing. It shows that even small improvements in financial education can have a big behavioural impact.
What role can the private sector play in improving financial literacy?
Private-sector companies, especially financial services, have an important role to play in improving financial literacy, and they can be most effective when they work in concert with government initiatives. Public policy can set the direction, but industry has the resources, expertise, and day-to-day contact with consumers to bring financial education to life.
Financial services firms, in particular, have a duty to help people understand the concepts and risks that shape their financial decisions. A more knowledgeable investor isn’t just better protected, they’re also more confident, more engaged, and ultimately a better customer. When individuals understand how financial products work, how to assess risk, and how to make informed choices, they participate more responsibly and with greater long-term success.
By collaborating with government and committing to clear, unbiased education, the private sector can elevate overall financial understanding and contribute to a healthier, more resilient financial ecosystem.
The report suggests many people don’t trust traditional sources of financial education. What does that mean for outreach?
That’s true, most respondents told us they trust independent voices more than government campaigns. Names like Martin Lewis came up again and again. It shows that people respond to relatability and credibility.
The challenge for the industry is to communicate in a way that feels human and jargon-free. Financial services have often been guilty of making investing sound more complicated than it is. If we simplify the language and focus on relevance – how this affects someone’s everyday life – we can make real progress.
With the Chancellor encouraging more people to invest, what’s the opportunity for the UK right now?
The FCA and Barclays estimate that around 15 million UK adults are sitting on more than £610bn in excess cash savings. Even if a fraction of that moved into long-term investments, it could transform household wealth and support the UK’s capital markets.
But we have to bring people along on that journey responsibly. That means clear communication, transparent pricing, and a commitment to education. The Chancellor’s support is important because it legitimises the conversation around investing for the mainstream. It’s on us, as an industry, to make sure that confidence is built on understanding.
What’s your vision for the UK investor of the future?
I’d love to see a generation of investors who view investing as a normal part of managing their money, not something reserved for the wealthy or the brave.
Financial literacy should be as fundamental as digital literacy. If we can get to a place where every adult understands how inflation works, what diversification means, and how to make informed decisions, we’ll have a much more resilient economy and a more empowered society.
As our research shows, the future investor isn’t just informed – they’re confident, curious, and ready to take control of their financial destiny.
Capital.com is an execution-only brokerage platform and the content provided by Capital.com is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.
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