Oxford Risk has called on financial firms to do more to make changes in investor behaviour, after Barclays estimated that 13 million UK adults hold £430bn of possible investments in cash savings.

The suitability software and behavioural finance firm said that many people leave surplus cash on the sidelines because it "feels safe".

However, it stated that this "perceived security" comes at a high cost, totalling potentially up to 5% a year in lost earnings.

Oxford Risk added that it is also likely that increasing number of investors are being "negatively affected" by this.

The Financial Conduct Authority (FCA) has previously made the closure of the investment gap a "core goal" in its 2022-25 consumer investment strategy.

However, the regulator is yet to publish its 2024 data on the number of adults with £10,000 or more in investible assets but keep 75% and over of their assets in cash.

Despite the latest data not being available, previous data shows a "worrying trend", according to Oxford Risk.

In 2020, around 55% of adults kept these savings in cash, rising to 58% and 61% in 2022 and 2023 respectively.

The FCA said that increasing cash deployment remains one of the key strategic outcomes and wants consumers to "invest with confidence, understanding the risks they are taking, and the regulatory protections provided".

Oxford Risk stated that "it’s clear that much more needs to be done beyond just raising awareness of the issue to drive the vital change in investor behaviour".

It added that the solution "lies in innovation", with technology being able to "provide the hyper-personalised engagement needed to tackle emotional and behavioural barriers" to turn missed opportunities into "better outcomes for investors".

Head of behavioural finance at Oxfrod Risk, Greg Davies, said: "The FCA made addressing this issue a priority years ago, yet progress has been negligible. The fact that the latest figures haven’t been published may well reflect that there has been no meaningful improvement.

"Behavioural and emotional barriers are at the heart of this problem. Overcoming them requires more than just awareness—it demands tailored, technology-driven solutions that engage investors on a personal level.

"By using innovative, personalised engagement technology, financial firms can help investors overcome biases, get invested, stay invested, and make better decisions. This is key to closing the investment gap and delivering better outcomes for everyone."

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