Will Targeted Support Bridge the Gap?

Quilter’s launch is one of the first propositions to come to market following the launch of the FCA’s new framework in April 2026, to help address the advice gap.

The ambition is clear, help consumers who sit between DIY investing and traditional financial advice.

The FCA estimates up to 18 million consumers could benefit from Targeted Support over the next decade.

Quilter has also highlighted a gap in the market worth around £700bn today, expected to grow to £1.2tn by 2029. There’s an opportunity for more share of wallet, but we wonder whether the right problem is being solved.

The bigger challenge

The FCA continues to believe consumers need more support and encourages innovation in this space. Whereas the industry often cites affordability being a barrier to investing, which we have seen recently with Barclays removing fees from its Direct Investment proposition (see previous article here).

However, the bigger challenge may well sit with consumer confidence in making investment decisions. Generic guidance tells you what is possible, not what is right for you. Targeted Support asks questions, understands your situation and provides a recommendation based on people like you, and that personal relevance is what makes Quilter’s proposition interesting. 

First mover advantage?

The Targeted Support proposition is designed to sit between generic guidance and full financial advice and aims to provide consumers with reassurance, without the cost and complexity of traditional advice relationships.

In theory this sounds compelling, but the real question is whether it changes consumer behaviour.

We applaud Quilter for being hot off the mark and being the first mover in this space. However, being first to market doesn’t automatically translate into increased share of wallet.

Driving up the standard

We’ve seen plenty of innovative propositions generate industry attention, influence competitors and create a halo effect across the market, without fundamentally changing consumer behaviour. 

The harder challenge is building enough trust and confidence to encourage action. Trust in the provider giving the recommendation, and confidence in themselves to act on it.

So will Targeted Support be any different? We don’t know, but Quilter is unlikely to be the only provider to launch. With more firms expected to follow, this can only be beneficial in this competitive space, offering more choice to consumers and crucially, driving up the standard of digital experience. After all, it’s the quality of the journey that will ultimately make or break consumer confidence to act.