Retail investors are set to dominate the UK wealth and fintech landscape in 2026 as banks, wealth managers and digital challengers step up efforts to tap new demand for investing, according to Symmie Swil, UK General Manager at investment infrastructure firm Upvest.
Swil expects traditional financial institutions and newer fintechs to compete more aggressively for mass-market investors. She links this shift to growing policy interest in broadening participation in capital markets and a search for new revenue streams in a tougher lending environment.
"2026 will be the year of the retail investor. Government appetite to boost retail investing will be picked up and run with by a banking market vying to tap into rising interest and keen to unlock the commercial benefits of an inclusive investor base," said Swil, UK General Manager, Upvest.
She said banks and wealth managers that focus on longer-term trends will change where they invest in technology and operations. They will concentrate on digital systems that allow them to serve far larger numbers of small investors at lower cost.
Swil expects this shift to favour firms that already operate with modern, API-based infrastructure. She also expects it to intensify pressure on incumbent banks that still run legacy platforms.
Digital investing push
Swil said established players will face time pressure as digital challengers move quickly. "Banks and wealth managers with an eye on the future will start directing more resources towards implementing scalable, cost-efficient digital infrastructure that can help customers feel comfortable and confident when it comes to investing. But they'll have to move fast lest challenger banks steal a march."
She said direct-to-consumer investment products are likely to evolve around low entry points. These products will feature small minimum investment sizes and lower fees.
Fractional trading will play a central role in that trend. This feature lets investors buy small portions of higher-priced assets.
Swil also expects more use of pre-built or "ready-made" portfolios. These products bundle assets into simple choices that are easier for first-time investors to understand.
She said success in this area will depend on better use of customer data. "D2C offerings that start with low minimums, affordable fees and support fractional trading and ready-made investing options remove the barriers for people to get started on their investment journeys. Financial institutions that can understand their customers' goals and wider financial context are best placed to make investing feel seamless and intuitive."
AI and the advice gap
Swil expects artificial intelligence to change how firms support retail investors. She focuses on "targeted support", which sits between generic online guidance and regulated financial advice.
She said this middle ground could draw more people into investing. "I'm expecting the arrival of targeted support to have a lasting impact on growing the funnel of new investors. Targeted support bridges the 'advice gap' between generic guidance and financial advice, giving investors the information to make confident financial decisions. More confidence means more investors, so banks must make sure they have the digital infrastructure in place quickly to capture this opportunity."
Swil predicts that more firms will test AI-driven advisory tools in 2026. She said these tools will aim to deliver consistent and compliant recommendations at scale.
She links this development to a broader cultural shift in personal finance.
"We'll see more firms figuring out how to scale compliant financial advice with AI in 2026. If these tools are reliable, then the impact of anyone having a private banker in their pocket can't be overstated. This is the great unlock for Britain to become a nation of confident investors," said Swil.
All-in-one providers
Swil also expects more consolidation of financial services within single apps and platforms. She said a growing number of institutions will seek "all-in-one provider" status.
In practice this will mean more digital banks and fintechs adding long-term savings and investment products. These include Stocks and Shares ISAs and self-invested personal pensions.
Swil said these moves are designed to keep customers on one platform for longer periods. "More institutions will be looking to become 'all-in-one providers'. We'll see a trend of digital banks and fintechs offering long-term products like Stocks and Shares ISAs and SIPPs to lock-in investors for the long haul."
She also expects a significant shift in the status of crypto assets in UK retail portfolios. She predicts 2026 as a turning point for mainstream adoption.
"I also think that 2026 will finally be the year that crypto goes mainstream, whether that's part of portfolios directly, or via ETPs," said Swil.
