Over 75% of retail and affluent consumers still aren’t investing. This presents a huge opportunity. We explore how banks and brokers can capture this untapped market by rethinking pricing, building smarter, user-first features, and using AI to make investing simpler, not more complex.
A market of untapped potential
Despite the growth of digital investment tools, more than 75% of the population still does not invest, and trillions of euros in cash assets remain idle. To seize this opportunity, banks and brokers must focus on three critical levers: pricing for long-term value, feature development that drives user engagement, and smart integration of artificial intelligence (AI). These pillars can help providers break down the barriers and unlock the full potential of the market.
1. Price for customer lifetime value
For years, pricing strategies in the sector have focused on short-term gains. Frequent fee increases may deliver quick revenue, but they also push potential investors away, especially those in the retail segment, where cash is limited, and risk appetite is low.
The space for further price hikes is shrinking. It’s time to rethink the model.
The industry must focus on pricing strategies that drive long-term customer lifetime value (CLTV). This does not mean price is no longer important. It remains one of the key factors in customer decisions, but it calls for a deeper understanding of how price levels impact adoption, usage, and long-term customer value.
To grow, you need to reduce entry barriers, such as high minimum fees, and design pricing that works for your customers. This means looking at your revenue model holistically and aligning it with lifetime value, rather than relying on opportunistic fee increases.
2. Focus on features that matter
As trading costs fall, competition has shifted from pricing to product experience. Features that promote interaction, drive adoption, and increase transaction volume now define customer value.
Banks and brokers need to understand which innovations deliver the greatest impact and prioritize those that truly add value for customers. Decisions around which features to develop should be grounded in a deep understanding of customer needs and preferences, not driven by the appeal of impressive technologies. Technology should enable a better customer experience, not define it.
Some features that are worth exploring:
Fractional share investing: Lowers entry barriers and increases participation
Guided investment experience: Supports users throughout their investment journey
Portfolio analytics: Offers personalized insights and actionable guidance
Children’s accounts: Easily managed from a central platform and builds long-term relationships
These aren’t just nice-to-haves, they are strategic tools that drive CLTV and set your offering apart.
AI as an enhancer, not a mimic of human advice
AI presents a huge opportunity for banks and brokers, but only if it’s used wisely.
The goal should not be to imitate in-person advice with lifelike avatars, but to use AI to enhance and simplify the digital experience. Whether through streamlined processes, targeted insights or hyper-personalized recommendations, AI can guide users without overwhelming them. The future lies in augmentation, not imitation: smart systems that support and simplify decision-making rather than trying to replicate human advisors.
A similar misstep was observed during the rise of the metaverse, where some banks attempted to digitally replicate physical branches or offer financial products through immersive VR experiences. These efforts largely failed because they merely copied traditional use cases into a digital format, assuming customers would value the novelty of the technology without rethinking what customers actually desire or need in a digital setting.
Time for a strategic shift
Banks and brokers are at a turning point.
The opportunity in the retail and affluent segments is vast, but unlocking it will take more than small optimizations.
Providers must rethink how they deliver value:
Shift pricing models to support long-term growth.
Develop features that customers truly want.
Use AI to simplify the customer experience, rather than replicate traditional services.
Success will not come from technical perfection alone, nor from flashy technologies disconnected from real value. The real winners will be those who rethink the customer experience from the ground up.
How we can help
We work with banks and brokers to unlock growth across the full investment journey. Whether you’re rethinking your pricing, refining product strategy, or integrating AI that works in the real world, we can help you turn potential into performance.
Are you a provider exploring growth opportunities? Get in touch with us today, we’d love to help.
