The key industry challenges from platform proliferation

Barclays' plans to launch a low-cost investment platform - Barclays Direct Investing - unveiled last week are likely to herald the launch of similar services from rival providers in the near future, with widespread repercussions for the investment industry.

In an attempt to bridge the advice gap created after the introduction of the Retail Distribution Review at the end of 2012, Barclays is to combine its banking and investment management divisions into a new low-cost platform, which will allow customers to manage savings, current accounts and investments in one place. The launch is a challenge to other established players in this part of the market, including Hargreaves Lansdown, which is the largest D2C investment platform in the UK. Barclays Direct Investing will also offer a list of 50 funds which have achieved a certain level of per...