Barclays has called on the government and financial industry to "break down barriers" to investing as it revealed people in Britain have £430bn of cash savings which could be invested.
The bank said its new data and analysis was a conservative estimate.
It found 13mn UK adults were holding £430bn in cash deposits, with the figures based on savers who already held more than six months income in cash savings.
Sasha Wiggins, chief executive at Barclays private bank and wealth management, said this was a result of a lack of clarity and practical advice.
She said: "If this UK investment gap can be narrowed, we will address two major untapped opportunities – one for the 13 million potential investors who could be earning better returns on their cash savings over the long term, and the other for UK capital markets, which could see a boost if more savers were to invest."
Barclays said changes to regulation and improved consumer support are key to addressing this investment gap.
Ahead of the government and Financial Conduct Authority’s Advice Guidance Boundary Review being finalised, the bank has released a new report, 'Empowering retail savers to engage with investing', setting out public policy changes needed to get more UK savers investing for their future.
Wiggins added: "The industry needs to work with government and regulators to break down these barriers and help more savers to invest. Key to this is regulatory change.
"A more balanced environment is needed – one that protects investors but also allows financial providers to deliver more targeted support, without crossing the boundary between guidance and advice."
The research concluded choice paralysis, an inability to compare products and a fear of risk were all barriers preventing savers from investing.
It said online tools and a visualisation of returns could address these concerns.
The five policy recommendations made by Barclays were:
- FCA badge to identify entry-level investment products that meet specific diversification/asset allocation criteria
- Simpler sign-up journey for entry-level investments
- Regulatory changes to enable firms to suggest investment actions to customers with large cash balances, based on “people like you” personas.
- Online tool and investment guidance from MaPS
- The development of comparison tables for entry-level investment products.
Kitty Ussher, group head of policy development at Barclays, added: "Our research suggests two broad barriers that prevent savers from engaging with investing: difficulty identifying the right investment product to suit their financial needs, and the inability to make side-by-side comparisons of products.
"Our policy recommendations are drawn from these insights and designed to enable more savers to engage with investing in a simple and safe way."
tara.o'connor@ft.com
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