The last few years have seen some significant changes in the wealth market; RDR, increased regulatory burden, auto-enrolment and of course pension freedoms. All of these aimed at to protect a more fiscally empowered and aware population and an emphasis on self-sufficient long term provision. Yet we continue to see relatively low customer engagement and take-up in the regulated advice market. So how do we increase consumer engagement in this climate?
The latest Financial Advice Market Review – Baseline report (June 2017) suggests that only around 6% of the adult population had actively sought / taken advise. At a headline level this implies circa 3.2m people engaged with the estimated 25,900 individual advisers (FCA data).
Why is it then that advice take up remains relatively low? Especially when we consider that FAMR notes circa 12m people had sufficient savings to warrant engagement but did seek advice.
As markets are increasingly opened to investors and the growing needs of a new demographic – the Millennial / Gen Y, there is a considerable opportunity for wealth managers to create a broader level of engagement. Technology has a role to play of course, as does education / awareness and better alignment of end to end propositions to be more compelling and relevant, perhaps also debunking the perception that advice is “expensive”.
There are a number of routes that wealth firms can take to better position themselves. Success will require bold and imaginative thinking, better use of technology and closer engagement with the end customers and their extended families.
It is clear that there is a sizable pool of, as yet largely untapped, opportunity to better engage with end customers either through advice channels or “self serve” hybrid models which I will explore further over the coming weeks.
At Platform Action we are specialists in the Wealth platform space. Our aim is to help you Build with Confidence, Deliver with Certainty. Get in touch to discuss your views or to explore how we at Platform Action could help you.