The seven banks and finance firms who might call you to invest your money
The Financial Conduct Authority has introduced "targeted support", a new category of help that lets approved banks and financial firms proactively suggest investment options to customers, without the cost of full financial advice. The FCA has called it a "once-in-a-generation change" intended to help people who hold excess cash in savings move towards investing, filling a gap between generic guidance and paid, personalised advice.
So far seven providers have been approved, with six more applications pending. Quilter offers targeted support via its investment platform after a nine-question assessment; Zopa, the first bank approved, targets customers holding excess savings; Royal London and Monzo offer similar app-based ISA recommendations to existing customers; Vanguard is preparing a service aimed at building first-time investors' confidence; and Aviva is launching a pension-focused version this summer, with wider rollout expected later. The service is typically expected to be free, unlike traditional financial advice.
- FCA launches "targeted support" scheme for investment suggestions
- Seven firms approved, including Zopa, Monzo, Vanguard, Aviva, Royal London
- Aims to help savers with excess cash consider investing, usually free
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters argue that millions of people leave cash languishing in low-interest savings accounts out of inertia, confusion or fear of the cost and complexity of formal financial advice, and that this leaves them worse off in real terms once inflation is accounted for. They see targeted support as a sensible middle ground, giving firms that already know a customer's circumstances the ability to make timely, relevant suggestions without the expense of full regulated advice, which many people simply cannot afford or do not think they need. Proponents value innovation that closes the long-standing "advice gap" and trust the FCA's oversight, seeing this as pragmatic regulation that lets a free, lighter-touch service reach ordinary savers who would otherwise never engage with investing at all. They also note that firms are only newly approved and closely supervised, which should keep the service focused on genuine customer benefit rather than sales.
The case against
Sceptics worry that allowing banks and platforms to proactively suggest investments blurs the line between impartial guidance and product promotion, especially when the same firm profits from the products it recommends. They point to the industry's history of mis-selling, from endowment mortgages to PPI, as reason for caution whenever commercial incentives are placed close to financial decision-making, particularly for less financially confident customers who may assume a "free" nudge from their trusted bank carries the same rigour as full advice. Critics value strong consumer protection and worry that moving cash from the safety of savings into market-linked investments exposes people to capital risk they may not fully appreciate, especially if the simplified nine-question style assessments used by some firms cannot capture the nuance of an individual's full financial situation. They would prefer robust safeguards, clear disclosure and independent monitoring to be firmly proven before such schemes are widely rolled out.