A Third Of Adults Switched Financial Advice Arrangements In Last Year’s Turmoil
Written by JGFR
18 Jan 2010
Financial turmoil over the past year has seen a massive review of where people obtain financial advice.
A third of people (some 16.5 million people) switched between advisers, have moved to being advised or being non-advised.
This rises to two-thirds among the most financially active segment, giving rise to a highly mobile client base.
The 2009/2010 Financial DIY report from ComPeer / JGFR* sets out the state of the Financial advice market. It found more people have a financial adviser in 2009, although the majority are still undecided.
It also found that the banks are making a comeback as main financial advisers following their abandonment of this role in the mid-2000s when they commoditised and de-personalised many of their services with millions of people turning to Financial DIY.
The report examined how people regard financial advisers and found that the more financially active the individual the more likely they are to be critical of advice and are more likely to switch – and to move from advised to non-advised.
Growing use of online banking and financial services has been a major reason for the emergence of Financial DIY, although this report finds greater concern this year in using online financial services following the high profile savings bank losses and worries over privacy and identify theft.
Big marketing challenges in servicing the needs of the advised and non-advised markets face
financial advisers and institutions. The role of the internet and increasingly the use of social networking sites are at the heart of much industry deliberation.
Financial DIY – The rise of the mobile client? provides a unique perspective on customer levels of activity and advice preferences, particularly in the context of knowing what the public want in financial advice. It simplifies this complex and costly area of financial services, which seems constantly in a state of change. Too often understanding consumer needs have been forgotten. An objective of Financial DIY is to show what the financial advice needs of the consumer are and how and where they are served.
For details of obtaining Financial DIY – The rise of the mobile client report?
Contact John Gilbert +44 (0) 208 944 7510 / 07740 027968 or email
ComPeer Ltd (www.compeer.co.uk )
is a specialist in benchmarking, competitor analysis and research services. Its products and services daily benefit financial services firms seeking to compete in the private client wealth management sector.
JGFR (www.jgfr.co.uk )
is a specialist financial research consultancy providing regular commentary and reports on retail financial services and undertakes client commissioned studies.
January 15th 2010