IFAs are gearing up to compete with high-street banks' wealth management services which target their traditional client base.
This year, Abbey National has launched Inscape, Lloyds TSB set up Create, Barclays is revamping its Premier Banking business and HSBC is putting more focus on wealthy customers.
But IFAs believe they still have an edge over banks as they offer face-to-face advice based on a relationship of trust on a wide range of products.
Hargreaves Lansdown starts its Hallmark Wealth Management service next month, targeting individuals with over £150,000 to invest.
Hargreaves Lansdown Fund Management managing director Spike Hughes says: “I do not regard the wealth management service offered by banks as a threat. They can only offer a limited choice of investment options while Hargreaves Lansdown offers a bespoke portfolio from the finest investment houses.”
German high-tech IFA MLP is launching in the UK next month solely targeting high-net-worth individuals.
Towry Law marketing director Mike Bowman says: “It is an interesting development but banks have a perception problem to overcome. IFAs are well placed to mix technology and face-to-face advice.”
DBS network PR manager Sue Lewis says: “This shows what a lucrative market it is. Banks are making people more aware that they should be looking after their money and hopefully they will still seek advice from IFAs.”
l Perspective, p30