United Kingdom Consumer Financial Advice 2018: Consumer Research Report – ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)-- The "Consumer Financial Advice 2018: Consumer Research Report" report has been added to ResearchAndMarkets.com's offering.

The aim of this report is to study how UK consumers obtain and judge the advice they receive when they make financial investments. This is studied in terms of consumers who currently own investments and consumers who hold money in a form which could potentially be released and invested in investment products (e.g. held in cash or defined contribution - DC - pensions if the consumer is aged 55+).

The report considers what types of advice consumer want, where they and how they access advice and how much understanding do they have of the advice process. It also considers how consumer investment behaviour has been influenced by online developments such as Robo-Advice and how the Retail Distribution Review has influenced behaviour.

Currently, 26% of Investors take professional advice, with advice most likely to be sought and taken by wealthy investors who lack confidence in their own investing abilities. But there is potential to expand the consumer financial advice market

Only around one-in-ten Investors say they would never take professional financial advice whether that be from a human or computer (Robo-Advice), indicating the potential to expand the number of Investors getting professional advice. In terms of expanding their target market, advisory firms will be aided by the fact that professional advisors, especially IFAs, are thought of highly by Investors who are currently Unadvised and by the fact that Unadvised Investors clearly have some need for advice, guidance and/or support.

Key findings from the consumer financial advice report

• Professional advice is used to an above average degree by Investors who are: Risk Takers (own risky investment products), have wealth of 100,000+, are from the AB social grade, are males and are age aged 25-44.
• Financial advice is primarily sought for investment selection, planning or management and pension selection and planning.
• Only 41% of consumers feel confident enough or feel they have enough knowledge to buy a financial product or invest without professional help.
• 39% of Investors using professional advisors use an IFA
• 21% of Investors are Under Advised (i.e. they need investment support but do not get it).
• 67% of the Unadvised Investors would find some form of professional advice, guidance or support beneficial
• Only 44% of consumers (48% of Investors) would know how to start a search for a financial advisor if they wanted one.

Key Topics Covered:

1. Executive Summary

• Financial advisors used by a minority of Investors
• With IFAs the most popular type of advisor used
• There are ample opportunities for advisory firms to expand
• But the barriers must be overcome
• Advisors need to consider the potential and threat of online advice and guidance services
• And go the whole hog and consider launching Robo-Advice services
• The good news is that advisors are good at their job
• Meaning their clients must rate them very highly in terms of trust and quality
• Advisors and their clients mainly have an advisory relationship
• Barclays, Intrinsic and St James's Place Wealth Management the most widely used advisory firms

2. Introduction

• Definitions
• Abbreviations

3. A Brief Introduction to Investors

• Key findings
• Three types of consumer
• Equities and SIPPs the most popular risky investment held
• Age, gender and income the great discriminators
• The typical Risk-Taking Investor has 261,000 invested
• Larger portfolios allow more diversity and risk taking

4. The Advice Mindset

• Key findings
• Consumers invest mainly for defensive reasons and this can make them risk averse
• And for some it results in a lack of confidence when investing
• But there is a strong independent streak running through Investors
• Investment confidence drives the approach taken to investing
• Half of investors don't have their abilities and their support networks aligned
• But only around one-in-five Investors are under advised

5. Selecting a Financial Advisor

• Key findings
• One third of consumers wouldn't know where to start
• Confident, wealthy Investors with diverse portfolios have the easiest task
• Trust factors the stronger drivers of advisor selection
• What type of advice do Investors want and do you really want advice?
• Many Investors are not sure

6. The Current Use of Financial Advisors

• Key findings
• IFAs are the most likely type of advisor used
• Being professionally advised does not necessary mean meeting an advisor regularly
• IFAs, again are the main advisors consulted
• Advisors are used primarily on an advisory basis
• If you get professional help, you also tend to let them press the buy button
• Asset selection is the prime reason why advisors are used
• Clients are satisfied with the service they receive
• Most Advised Investors see a Keyfacts document which aids satisfaction
• Because they aid understanding of the service on offer
• Flat fee and on-going fees used in equal amounts
• Advised Investors happier with flat fees
• Barclays, Intrinsic and St James's Place Wealth Management the most widely used advisory firms
• Five firms vie for leadership among current Advised Investors

7. The Opportunities and Competitive Challenges

• Key findings
• There is potential for an advisor-led guidance service
• Especially as advisors are considered as the best source of information
• First advisors must overcome the barriers
• Will online tools push more Investors into DIY investing?
• And the fund platform challenge could be greater than this
• Young, confident Investors are powering the rise of online investing
• Should advisors embrace Robo-Advice?

Companies Mentioned

• Barclays
• Intrinsic
• St James's Place Wealth Management

For more information about this report visit https://www.researchandmarkets.com/research/3k7gq4/united_kingdom?w=4

View source version on businesswire.com: https://www.businesswire.com/news/home/20190219005451/en/

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Source: Research and Markets