0:00
I'm getting into tricky territory here
0:01
if you had to appoint a celebrity to
0:04
your board who would it be and why God
0:06
forbid you did that I can't think of
0:07
anything worse are you optimistic about
0:10
the UK economy well I'm an optimist by
0:13
Nature we're um I'm getting into tricky
0:15
territory here we don't appear to have
0:19
um a very strong political class the US
0:21
is currently um a very attractive place
0:25
to operate in because they they have
0:27
done a better job at supporting growth
0:30
investment and belief um so there lots
0:33
of things that we can we can learn from
0:35
hello and welcome to another episode of
0:37
bour uncovered from cityam with me John
0:39
Robinson my guest for this Edition is
0:41
Richard Wilson the chief executive of
0:44
interactive investor Wilson who is also
0:47
Chief Operating Officer of parent
0:48
company aedine has been in charge of II
0:51
for eight years and has overseen the
0:53
transformation of the financial services
0:55
provider but as competition has eated up
0:57
in recent years from the likes of eoro
0:59
trading 212 and Robin Hood how is II not
1:03
only maintaining its position but also
1:05
growing its market share without any
1:07
further delay let's dive in Richard
1:09
thank you very much for coming on board
1:10
and recover it's great to have you thank
1:12
you very much for having me it's good to
1:14
see you I've been a couple of years
1:15
since we were last together I think it
1:17
has yes first question what kind of
1:21
leader are you oh that's a good question
1:23
I'm probably not the best person to ask
1:25
um I'd like to think that um I am uh
1:29
Prince principled um energetic some
1:32
people would call me Rel Relentless and
1:35
focused but um most of my job is
1:38
supporting the team and listening and
1:42
helping so I guess that would be a
1:45
participative inclusive leader um you
1:48
want to create an environment where
1:50
people feel safe to express themselves
1:53
to be themselves and just stay focused
1:56
on the Target and um solve problems one
2:01
so uh if that defines leadership then
2:05
then great occasionally you got to make
2:07
a bit of a bold decision and sometimes
2:09
that falls on my shoulders but not very
2:12
often I think if you're making too many
2:14
decisions yourself you've got something
2:15
wrong and just enjoy the time with the
2:18
people you work with and um look forward
2:20
to tomorrow celebrate success support
2:23
people who have a bad day and go again
2:26
you talk about success interactive
2:27
investor has had a lot of that
2:30
in recent years what do you put that
2:32
growth down to I mean I think um uh on
2:36
the one hand we we've got a sensible
2:38
proposition where we're very clear that
2:40
that we uh exist to support people
2:45
taking control of their financial future
2:48
um we've got a great operating culture
2:51
where um we we're there to serve our
2:55
customers and make sure we stand in
2:57
front of their uncertainties and
3:00
problems what makes us a bit different
3:02
is we have a subscription model so we're
3:04
a fixed price um provider which is not
3:07
the norm which means that the more you
3:09
have the more you save and it provides
3:12
Clarity and simplicity for we get paid
3:15
to provide a service and we don't take a
3:16
slice of your wealth for the privilege
3:20
um everything else is about delivering
3:23
service and delivering new Solutions and
3:26
new products to help consumers engage
3:29
with their their wealth and engage with
3:32
their future plans so that they're in a
3:34
place where they can feel more confident
3:36
about their money and their life that
3:39
sort of scription model is unique to
3:43
your organization since real last spoke
3:45
it seems that the competition in your
3:46
space is just blown up you you've got
3:49
eoro you got trading C12 various other
3:52
platforms that competes with what you're
3:55
offering how are you dealing with that
3:58
increased competition and trying to set
3:59
yourself out compared to the others well
4:02
I think our our job is to provide a a
4:05
great service we compete against
4:09
everybody um the big us houses the Neo
4:12
Brokers the life companies the UK Banks
4:17
um we think that we deliver Great Value
4:19
um we won't be the best service for
4:22
everybody was not Our intention to be
4:25
some panasia for all um but for the
4:30
we um we're focused on which is people
4:32
with more than 10 15,000 pounds of
4:35
investable assets so we provide a a
4:37
range of services with a um a leading
4:41
sip proposition um a great and fast
4:45
trading ability um and related services
4:49
that mean that we're just a good outcome
4:51
for people who want a fast reliable
4:53
service um when if You' got an issue
4:55
that we answer the phone if I was a new
4:59
to get into it I was choosing a
5:01
particular platform what three top tips
5:05
would you give to me the first thing is
5:09
um in terms of my investment choices do
5:13
they match what I need so if you're
5:14
starting early um you really want to
5:17
have a very simple uh lowcost
5:20
accumulation with a range of funds which
5:24
you can select between some providers
5:26
only provide their own funds which um is
5:30
um and you want to make sure that in
5:31
terms of what you're putting your
5:34
investments in whether it's an ice or a
5:36
sip or an investment account that you
5:38
prioritize your long-term savings and
5:41
then your shorter term investments so
5:43
that you can match those to your life
5:46
stage and your ambition and your risk
5:48
appetite I think the key thing for the
5:51
the consumer the UK consumer certainly
5:54
is to start as early as possible the
5:56
eighth wonder of the world is
5:58
compounding um and and the earier you
6:00
start um the more that you'll have in
6:03
the end I think we've got well over a
6:05
thousand icea millionaires for example
6:08
and um that's a a process where they
6:11
just consistently invested in their is
6:15
over the the long run and that
6:18
consistent sensible um behavior is
6:21
rewards you in the end it's entirely
6:24
right also to have your own personal
6:26
interests and if you think you know
6:28
particularly keen on a particular
6:30
technology or a particular part of the
6:32
world then you might want to put a
6:33
little bit in into that space um but
6:37
generally we're there to support the
6:40
accumulation of wealth so that you've um
6:43
you're in a place that you think you you
6:45
can be and need be um in later life is
6:48
there a particular investing Trend that
6:50
you've noticed over the last few months
6:52
or so it's called your eye over the last
6:55
two or three years I mean you've got the
6:58
the mag 7 phenomenon in the us which has
7:01
um uh dragged a great deal of investment
7:04
towards us markets and of course because
7:06
they're in a lot of the
7:08
indexes um that's um being a very
7:11
popular Trend um and in terms of the
7:15
actual products we see enormous growth
7:18
in um index funds and ETFs and people
7:23
trading more foreign markets and the UK
7:26
markets because the UK markets
7:28
unfortunately with the current tax
7:31
regime the UK Market's just about
7:33
untradeable which is not very good for
7:36
um the long-term health of the country
7:38
but um we still provide I think we do
7:40
something like 25% of UK retail share
7:44
trading so we get a but a reasonable
7:46
look at the the the trends out there and
7:48
most people want to have access to the
7:51
choices for them and everyone's
7:53
different but in the main it's I want to
7:55
have a long-term accumulating um product
8:00
no surprises and doesn't a lot cost a
8:02
lot to run yeah you talk about the tax
8:06
policies in the UK at the moment uh
8:09
you're obviously not so much of a fan
8:11
why is that well I don't blame the
8:13
current government the previous
8:15
government um uh didn't solve it either
8:19
um we imposed a a transaction tax um in
8:23
the late eight8 early 90s um and the
8:28
effect of that is to gradually erode the
8:31
UK market and everyone cries about know
8:35
IPOs going to the US or know lack of
8:39
growth in the UK uh if you tax your
8:42
Market out of existence you you get um
8:46
first of all you get less tax because um
8:49
it doesn't actually work and secondly
8:51
it's not by Magic that if youve got
8:53
higher valuations um elsewhere I when I
8:56
would do the same you would list
8:58
elsewhere so what you're seeing is a a
9:00
gradual um undermining of the UK market
9:04
and if you ask any algorithm or any fund
9:08
to increase its allocation to the UK
9:11
Market on trading basis they won't
9:13
actually buy the shares they'll buy
9:14
derivatives because the the transaction
9:16
cost makes every decision irrational
9:18
we've got the spring statement coming up
9:20
soon what would you like to see Rachel
9:22
re announcing that well Rachel Reeves U
9:25
it's not for me to to put myself in the
9:27
chancellor issues um she has as we all
9:30
know some some challenges and fiscal
9:33
headr is um is clearly a problem given
9:37
the um the growth rates um tracking down
9:41
toward zero um inflation being somewhat
9:46
um resilient and therefore interest
9:48
rates being a bit higher which then
9:51
affects the cost of funding government
9:53
debt um I think she needs to be quite
9:56
courageous um and solve the long run um
10:01
the bond market obviously puts a speed
10:03
limit on what you can do but um things
10:06
like transaction tax you have to resolve
10:08
that because you're it's a Munch housing
10:11
problem you're poisoning your kid and
10:13
you either solve it now or the market
10:15
will solve it for you um increasing the
10:18
tax on employers um was a a a I mean
10:23
there's a there's a gap to fill you
10:25
could argue quite easily that that um
10:28
income tax would would have been a a
10:30
much bigger pool a much more sensible to
10:32
do rather than to reduce the appetite
10:35
for employers to hire and increase the
10:37
cost of employment and we're seeing that
10:39
coming through in the
10:41
various um surveys about employers
10:44
appetite to hire is has dropped if you
10:47
if you're trying to to promote a growth
10:49
environment we've got something like 13
10:52
13 14 million people who work in family
10:55
and small businesses in the country
10:58
they're the bed Rock of of our future
11:00
and you have to do everything you can to
11:02
to promote their their growth and things
11:06
like iht have have caused I mean for
11:09
what's a very small number have caused
11:12
all sorts of angst and we've seen
11:14
tractors in the streets um so you you
11:18
have to argue that to grow you have to S
11:21
support that growth agenda with a with a
11:24
tax structure that make sense you also
11:26
got to attract talent and retain talent
11:28
in the country um and we have in
11:30
financial services certainly the the
11:33
regime of kind of deferrals and um long
11:37
notice periods um slow down the process
11:41
of of people moving um and you have this
11:44
strange environment you you don't see it
11:46
in the US in New York at all where um
11:49
you might be I'm sitting on the uh
11:52
Garden leave for six months or a year
11:55
and for your most valuable Talent you
11:57
could if you change jobs four or five
12:00
times over 30 years you're taking a a
12:03
big chunk of your best people out of the
12:04
market so that stuff just makes no
12:10
sense time for those quick fire
12:12
questions Rich go what was your first
12:14
job my first job was part for as a kid
12:19
um doing sheep sharing the summer which
12:20
I would even talk about because it was
12:21
two two four um my first job was as a
12:25
graduate trainee in Lloyd's
12:28
International Bank in 1988 which I did
12:31
for a year who inspires you there's a
12:35
whole bunch of people that different
12:36
parts of my life have inspired me um
12:40
some of my colleagues frankly inspire me
12:42
a great deal um if I had to pick one
12:45
person particularly be my uncle as a as
12:48
a role model for how you live your life
12:50
and what being a true professional is
12:53
ISA I always looked up to as being
12:55
someone I wanted to be if you had to
12:58
appoint a celebrity to your board who
13:00
would it be and why God forbid you did
13:02
that um I can't think of anything worse
13:05
um well for a bit of sport you might
13:07
have Elon in the room he will certainly
13:08
create a bit of a bit of a a bit of
13:11
dialogue um there are some extraordinar
13:15
gifted people out there who now find
13:18
themselves running large large
13:19
Enterprises I'm not sure I'm not sure i'
13:21
have many film stars in there but you've
13:23
got a a bunch of very very smart people
13:26
um who running a major tech companies
13:28
well by any one of those those would
13:29
would would do for me what's the best
13:31
thing about your job the people um I
13:34
love being in Manchester with the team
13:37
um that that that hustle and bustle um
13:41
the ongoing conversations the the um the
13:46
ambition and the belief that we're we're
13:48
doing something which actually it brings
13:50
good um gives me energy and I just love
13:53
it if you weren't doing this what would
13:56
you be doing my ambition was to be a
13:58
musician and I was never really good
14:00
enough so I stare at my piano we have
14:02
this kind of onoff relationship where
14:04
the piano says you need need to try
14:06
harder um so I'd like to think I'd be
14:10
some sort of um penist in a bar
14:13
somewhere um uh so I think I think being
14:17
in in in music would probably be what I
14:20
would hope to be and finally if you were
14:21
prime minister for the day what would
14:22
you do gosh that's a tricky one um a day
14:27
is not a long time uh politics um time
14:31
shorter uh if for a day all I would hope
14:35
to be able to do is um bring some belief
14:39
and conviction about what kind of
14:41
society that we want to be and what
14:44
country we need to be somewhere where um
14:48
ambition is good where people can aspire
14:51
to greater things where hard work is
14:54
rewarded where your children are safe in
14:56
the streets where we protect our
14:59
citizens um from the outside and where
15:02
we focus on key future um developments
15:07
around technology and health care and
15:10
education so we can put our country
15:13
where it needs to be which is a Leading
15:14
Light and Innovation with strong values
15:17
that are centered on the
15:19
family now you just mentioned about uh
15:22
being a Manchester interactive investor
15:24
is a proud Manch where we met last yes
15:26
it's proud Manchester company so we're
15:28
going to take over this now and just
15:29
talk about Manchester and why that's
15:31
better than London why is it important
15:34
that interactive investor is still
15:35
headquartered in Manchester well I could
15:39
ask the question why would you want to
15:40
be anywhere else you've got um it's a
15:43
wonderful place with a
15:46
great suburban area lots of things to do
15:50
and for us the important thing is build
15:52
to access um talent and Manchester's um
15:56
gone through a period where it's now a a
15:59
net sort of magnet in terms of of talent
16:02
um I can't think of being anywhere else
16:05
frankly it's it works for us I think
16:07
we've got just about 700 people in in
16:10
Manchester um and um we just enjoy enjoy
16:15
being there greatest city in the world
16:17
some might say some might say some some
16:19
might say other things but but they be
16:21
wrong no I'm you obviously got um some
16:25
some personal bias there which I can
16:26
celebrate celebrate a difference of view
16:29
yeah absolutely um let's get back to the
16:31
serious stuff shall we let's talk about
16:33
Rachel Reeves obviously she's the lab
16:35
government's not in power for for even a
16:37
year yet but they've obviously had a
16:40
budget we've got the spring statement
16:41
coming up how would you rate her
16:44
performance so far I mean it's not for
16:47
me to get involved in in in in politics
16:50
um but I think as I said um previously
16:54
the the the growth agenda doesn't isn't
16:58
matched with growth policies the um the
17:02
imposition of the employe taxes as an
17:05
example is is a net negative um and I'm
17:09
not seeing in terms of industrial policy
17:12
I'm not seeing that translating into
17:15
into to growth factors um ihts caused
17:19
some disturbance I mean for a tax raise
17:21
of I think which is half a half a
17:23
billion quid um as a disincentive to
17:27
invest in in your family Andor small
17:31
business which is where all of our
17:32
futures come from um that's that's
17:36
disappointing and clearly there are
17:39
there are fiscal challenges but what we
17:41
can't do is allow ideology to get in the
17:43
way of Economics um and we need to be
17:46
able to be wealthy enough as a nation to
17:48
be to be generous you don't do that by
17:51
under undermining growth are you
17:53
optimistic about the UK economy it
17:55
doesn't sound like you wholly are well
17:58
I'm an optimist but by
17:59
Nature um we're um I'm getting into
18:03
tricky territory here the the we like to
18:06
be in tricky territory on the show we we
18:08
don't appear to have um a very strong
18:11
political class um the depth of
18:14
leadership that we have in politics
18:17
is is um is short why is that do you
18:20
think um that's a a bit of a head
18:22
scratch I think um there's a number of
18:25
reasons for that we don't value it very
18:27
well um we're very easy to criticize
18:30
people and lambas them in the newspapers
18:34
for going to a football match or
18:36
whatever um to trivialize what what they
18:39
do we also don't reward them very well
18:43
um the I think an MP salary is is just
18:48
about a smidge above um a junior
18:51
supervisor in the city in London um so
18:55
we've got a number of reasons why um
18:58
it's not a very appealing uh vocation um
19:03
and it it I think the Western world's a
19:06
bit short of um strong leaders today um
19:10
which is a risk for all of us so is
19:13
certainly a moment of reflection a clear
19:14
in the UK recently we've seen some
19:17
fairly material changes in support for
19:20
different parties obviously the
19:21
conservatives had a bit of a a howler in
19:24
the the last election the new government
19:27
hasn't exactly covered itself self in in
19:29
in glory you've got the emergence of the
19:32
Reform Party and we've clearly got some
19:35
significant challenges to face and we
19:37
need that our institutions to stand up
19:39
and be strong and we need to have simple
19:41
rules that we can work by so we're clear
19:44
if we investing you don't find yourself
19:46
where someone's changing the rules later
19:49
um well that just discourages everybody
19:51
from investing but we have a wonderful
19:54
um environment in the UK we've got
19:57
wonderful Talent we've got some great
19:59
strength so we just need to be
20:00
consistent and keep it simple you
20:02
mentioned earlier about uh Elon Musk of
20:06
course he's taking on a a more prominent
20:07
role in the US does that have any sort
20:10
of direct impact on interactive investor
20:13
and your business model no in an answer
20:16
in a way um what's going on in the world
20:21
fantastically um interesting as OB
20:24
clearly there's lots of volatility out
20:26
there now with all sorts of things go on
20:29
in terms of geopolitics and people
20:31
taking big positions which they may then
20:35
stand out from later um but it clearly
20:39
is changing the world order and um um
20:44
the US is currently um a very attractive
20:48
place to operate in because they they
20:50
have a done a better job at supporting
20:53
growth investment and belief um so there
20:56
lots of things that we can we can learn
20:59
clearly over the last few years global
21:01
trade has been fractured a little bit um
21:03
by various events over the last 15 20
21:08
years including the global financial
21:09
crisis um and we need to be able to find
21:12
a way to be able to promote global trade
21:15
was making sure that we stay safe um and
21:18
we've obviously number of countries have
21:20
found themselves somewhat short changed
21:23
um when certain events take place and
21:25
the gas supply gets shut off or they
21:27
don't have Supply of widgets for their
21:29
cars so there's there been some harsh
21:31
lessons in terms of Supply
21:34
chains um an interesting interesting
21:36
times I think is fair to say
21:38
diplomatically put some might say let's
21:41
switch to your company interactive
21:43
investor where do you think your company
21:46
will be in the next five years huh um
21:50
well I hope um that we continue to grow
21:54
and develop new services so we've got a
21:58
a new highend trading platform which um
22:01
we'll be um going into beter on in the
22:04
next few days we're increas continuously
22:07
um improving automation of investment
22:11
choices um so we'll have a new managed
22:14
sip product in the second quarter we
22:16
went live in October with our social
22:19
investing platform which is is kind of
22:22
cool and that helps people engage with
22:25
each other to be able to learn um and
22:29
um an audience where I mean our our
22:32
customers are pretty
22:34
engaged relative to um the rest of the
22:37
the market and within that know half a
22:40
million or so people you've got some
22:42
brilliant people who know more about um
22:46
investment choices and indeed our
22:47
platform than I do so it's great to have
22:50
them to share their views um so people
22:53
can learn from each other and just
22:54
reduce that level of uncertainty know
22:57
the world's full of Uncertain things
22:59
but you more confidence to make the
23:00
right choices for you taking the inputs
23:03
that you need to I was interested that
23:04
you introduced that last year was that
23:06
in a direct result be uh from eoro
23:11
because they already offered that did
23:13
you look at that competition thought we
23:15
needed to get we're aware of
23:18
what's uhar did which is a it's a it's a
23:22
great kind of um thought process think
23:25
trading 212 has a uh an environment and
23:29
we've been working on that um since 2020
23:33
um so a while in the a while in the
23:36
coming for us it's just a sensible
23:39
Concept in in trying to
23:42
engage um as much as possible um people
23:47
with their Investments and not closing
23:49
off the world of exchange of views and
23:53
understanding what people around them
23:54
are doing without obviously respecting
23:56
anonity and so forth and it's just
23:58
another generation away from what used
24:00
to be chat rooms and this is now kind of
24:03
a curated space which just allows those
24:06
conversations to be um whilst they're
24:09
protected to be able to um share views
24:12
and Link that to data around their
24:14
investment so people can see have you
24:16
got an idea of who's actually taken up
24:19
that opportunity sure ages demographics
24:23
backgrounds it's it's early it's early
24:26
it's early early days um but the it's a
24:29
broad the the demographic um largely
24:32
matches our our overall customer base so
24:37
um we have a curve which goes from sort
24:40
of 18 to 103 or whatever it is and we
24:44
have a kind of the the the the maximum
24:47
um concentration of peoples in they 45
24:50
to 60 levels you see that more um it is
24:54
today more um male than female um so
24:59
promoting um some threads and themes
25:03
which are more skewed to female
25:05
interests and other female group and so
25:07
on to help people um that promote
25:10
greater engagement what does that look
25:12
like in practice well in practice you
25:14
have a a a group which will have a
25:17
thread called X so if if women investing
25:21
um it could be linked to you know Junior
25:24
Isis and and other related themes to to
25:27
bring points of interest where different
25:29
types of people have want to be involved
25:32
in a different type of community so they
25:33
feel a they feel safe and they don't
25:36
feel silly asking questions yeah because
25:38
a lot of us you you know
25:41
you there's a there's so much
25:43
uncertainty about what the reality is
25:45
that people feel a bit shy about asking
25:47
things so you know I've got a junior eye
25:49
so what do I do it's a very
25:52
straightforward question but you say
25:53
well who do I ask so having a thread
25:55
which says Junior Isa please help you'll
25:58
have like 100 people commenting there's
26:00
information that you can trust as well
26:02
there's an awful lot of information out
26:04
there on the internet but trying to find
26:07
reptical answers is a challenge we have
26:10
a blizzard of stuff out there whether it
26:13
be on social media or in other kind of
26:15
traditional channels and trying to
26:18
understand what the relevance is for me
26:20
and how is is not easy at all and quite
26:23
often of course information is loaded uh
26:26
they're try to encourage you to do
26:27
something rather than just Express in
26:30
know kind of an independent view um so
26:32
that's very valuable to have you know an
26:34
unbiased um and unfettered kind of
26:38
conversation between people who are of a
26:40
similar type in a similar life stage
26:43
number of children income whatever it is
26:46
that says you know you can relate to
26:47
people and have a conversation so you
26:50
just get more confident that it's okay
26:52
to have the conversation you're not
26:53
being sold something in the process and
26:55
part of our pricing model has always
26:57
been a bound um being agnostic um we we
27:01
get we get paid know a fixed monthly fee
27:05
we're not incentivized to try and
27:07
encourage people to trade more um we
27:10
don't gamify anything and we don't make
27:13
more money whether you buy fundex or or
27:15
you know instrument y so it it that's
27:18
very helpful into having an even uh an
27:21
even balance view finally Richard I want
27:23
ask this question to to everybody what
27:26
does it take to be a good chief
27:28
executive well I mean I I I think you
27:31
need to understand the underlying the
27:35
underpinnings of why you're there what
27:37
your business is about what your your
27:40
mission is um you then need to um more
27:44
important than anything else understand
27:46
people so that you can then um encourage
27:52
and recruit and Inspire and retain
27:55
people to be responsible parts of that
27:58
organization and help Hope me hopefully
28:01
help them build their careers by an
28:04
enriching their professional
28:06
experience and then being Having the
28:10
courage to be focused and Having the
28:13
courage to say no and have the have the
28:16
courage to make that no uh um uh very
28:19
clear and positive because most
28:22
organizations um fail because they um
28:26
they don't stay focused and they drift
28:28
off their their core purpose they chase
28:30
rabbits or shiny toys or whatever they
28:33
do um and I mean our business has been
28:36
successful so far I think because we've
28:40
been pretty clinical about what we do
28:42
for a living and having been distracted
28:44
by then there's noise every day so I oh
28:46
my God Robin Hood or made Maran or
28:49
Little John whenever the latest thing
28:51
coming oh my God oh my God my God what
28:52
are you going to do and the answer is
28:53
you you stay focused on the job think
28:56
very hard about the data look at who
28:58
your audiences understand what your
29:01
operating capabilities are and just
29:04
execute brilliant Richard thank you very
29:06
much for coming on the show great to see
29:08
you thank you so much thank you