View more on these topics

Young seek friends&#39 advice ahead of IFAs

IFAs are in for a rude awakening as a new survey reveals young

professionals would rather seek advice from friends and relatives than go

to a professional adviser.

The survey, conducted by software company Focus Solutions Group on

financial services and new channels to the market, highlights some

disturbing trends among young professionals aged between 25 and 35.

The company says nearly 29 per cent of respondents would prefer to talk to

a friend or relative for financial advice rather than an IFA while 6 per

cent said they would seek advice from the press rather than a trained

adviser.

This relatively affluent group is sceptical about the value of talking to IFAs.

Only 5 per cent of respondents believe they would be guaranteed impartial

advice. This is compounded by a belief that IFAs are commission-hungry and

would not put the client&#39s financial needs first.

Focus Solutions says its findings also show financial services companies

are failing to connect with young professionals.

Despite having average annual salaries of £30,000, those surveyed

were shown to save very little, if at all.

Two-thirds, or 63 per cent, find financial products difficult to understand.

Nearly 60 per cent said they would be more interested in them if the

buying process was less complicated and quicker.

However, the survey revealed a distinct resistance to buying more complex

products, including mortgages, via the internet or digital TV.

Focus Solutions Group managing director John Streets says: “While

consumers seem to be slower to wake up to the benefits of doing business

electronically, there is already a small but dis-inct group which is using

the net for accessing some financial products.

“The challenge for the industry is to use the internet not only to achieve

processing efficiencies but also to make product information easier to

access and understand.”

Technology, p36

Recommended

Nuki&#39s Eye

What causes British consumer regulators continually to allow crooks tobreak the law with impunity?If you think this is a glib question penned only to cause controversy, youare very wrong. It is a serious question intended to highlight a seriousproblem with consumer protection in Britain.Despite having the clearest possible evidence that specific firms arebreaking the law […]

Ludgate brand to go as it joins with sister firm

PR firm Ludgate Communications will cease to exist as a brand in thefinancial services sector following a merger with sister company GolinHarris.The company is also losing four members of its public affairs division,who resigned after failing in their bid for a management buyout. The fourare public affairs division managing director Stephen Locke, deputymanaging director of […]

Misys networks to recruit Colonial salesforce

Misys networks Kestrel and IFA Network plan to recruit 350 of the Colonialsalesforce franchisees left jobless after Winterthur&#39s takeover ofColonial Life.If all 350 are recruited, the number of registered individuals in theMisys stable would rise to nearly 5,000.The networks say they were inundated with calls from the franchiseesinterested in joining following the £332m takeover of […]

IFAP survey shows advice is not just for the wealthy

IFA Promotion has dispelled the myth that independent financial advice isonly for the well-off.Research reveals that 41 per cent of users of the IFAP hotline service arein the C1, C2, D and E social brackets.Those in the C1 group – white-collar workers – were found to be more loyalthan other users, with 84 per cent […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com