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 and 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 helps to simplify by customer levels of activity and their advice preferences across different product types what has become an unnecessarily complex and costly area of financial services, with no sign 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.
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