Market Research Report: Consumers And Financial Advice Industry In UK April 2014 - Global Industry Analysis, Size, Share, Growth, Trends and Forecast
The advice gap presents an opportunity for the financial advice industry. Firms that are able to innovate and offer low cost solutions will prosper in future, while those who do not address this part of the market will forfeit share to online competitors.
Browse Full Report With TOC: http://www.marketresearchreports.biz/analysis-details/consumers-and-financial-advice-uk-april-2014
Table of Content
Introduction
Note on definitions
Note on consumer research
Abbreviations
Executive Summary
The financial advice market
Numbers of financial advisers continue to increase post-RDR
Figure 1: Number of advisers, by sub-type, December 2012, July 2013 and January 2014
The RDR – More phases are implemented
Economic and demographic context
A lack of disposable income makes it difficult for consumers to save
The consumer
Consumers use banks for advice more regularly than financial advisers
Figure 2: Types of financial advice used, January 2014
Referrals and recommendations are still a popular way for consumers to find an adviser
Figure 3: Methods for finding financial advice, January 2014
Face-to-face remains the most popular way to receive financial advice
Figure 4: Accessing financial advice, January 2014
The cost of advice is still a concern for consumers
Figure 5: Attitudes towards financial advice, January 2014
The majority of consumers would prefer ad hoc advice
More consumers would prefer to make their own decisions rather than rely on professional advice
Figure 6: Attitudes towards managing finances, January 2014
What we think
Issues and Insights
Online tools can make financial advice affordable for younger consumers
The facts
The implications
Flexibility is the key to attracting wealthier consumers
The facts
The implications
Banks and building societies still have the perfect platform for offering mass-market advice
The facts
The implications
Advice through money advice or employers can give consumers greater confidence
The facts
The implications
Trend Application
Keep it local
DIY administration for cheaper financial advice
Mintel Futures: Generation Next
To Get Download Full Report with TOC: http://www.marketresearchreports.biz/sample/sample/195641
Regulatory Context
Key points
The RDR – More phases are implemented
Capital adequacy rules to be delayed until 2017
First thematic review on how firms are implementing the RDR
Second thematic review on delivering independent advice
Non-advised and simplified advice
RDR has not reduced the financial adviser population
Figure 7: Number of advisers, by sub-type, December 2012, July 2013 and January 2014
Mortgages
MMR comes into force banning most non-advised sales
The 2014 Budget proposes to ‘guarantee guidance’ for consumers at retirement
European regulation
MiFID II could challenge the rules of the RDR
rules on PRIPs could also conflict with the RDR
Economic Context
Key points
A lack of disposable income makes it difficult for consumers to save
Figure 8: Increases in the cost of living and the growth in average wages, January 2008-February 2014
Economic improvement begins to pull down the savings ratio
Figure 9: Quarterly change in UK GDP and Household savings ratio, Q1 2004-Q4 2013
Low interest rates continue to undermine appeal of cash savings
Figure 10: Official bank base rate and three-month LIBOR, January 2007-February 2014
FTSE continued to edge higher in 2013
Figure 11: FTSE 100 and FTSE All-share – Daily index movements, January 2008-March 2014
Consumer Sentiment
Key points
Consumer confidence increased sharply in 2013
Figure 12: UK consumer confidence index, January 1989-December 2013
Consumers’ finances are slowly improving…
Figure 13: Trends in consumer financial situation, June 2009-January 2014
yet 29% feel that their financial position is worse than last year
Figure 14: Trend in financial situation compared to a year ago, July 2011-February 2014
Consumers are more optimistic about the future
Figure 15: Trend in consumer sentiment for the coming year, June 2009-December 2013
Value of Savings and Investments
Key points
Overall, consumers have low levels of savings and investments
Figure 16: Value of savings and investments, January 2014
Financial advisers target affluent consumers
Figure 17: Wealth of advised clients, August 2013
Older consumers are more likely to be seeking financial advice
Figure 18: Value of savings and investments, by age, January 2014
To Read Complete Report with TOC: http://www.marketresearchreports.biz/analysis/195641
Expected Demand for Financial Advice by Product
Key points
The majority of consumers expect to receive advice on a financial product in the future
Figure 19: Expected demand for financial advice by product, January 2014
Younger consumers are more likely to expect to receive advice in the future
Figure 20: Expected demand for financial advice by product, by age, January 2014
Over 55s underestimate their need for pension advice
Wealthier consumers are more likely expect to receive advice on savings and investments
Figure 21: Expected demand for financial advice by product, by value of savings and investments, January 2014
There is potential for cross-selling of services across the advice industry
Figure 22: Expected demand for financial advice by product, by expected demand for financial advice by product, January 2014
Types of Advice Used
Key points
Bank and building societies top list of most used professional source of advice
Figure 23: Types of advice used, January 2014
Financial advisers are more likely to be used by wealthier consumers
Friends and family hold sway with younger consumers
Online channels of advice are widely used to inform financial decisions
People want to learn from the experiences of others
Money Advice Service is yet to attract widespread use as a channel of advice
Employers also remain a niche source of advice
Wealthier consumers are more likely to have used a financial adviser
Figure 24: Value of savings and investments, by types of advice used, January 2014
About us
MarketResearchReports.biz is the most comprehensive collection of market research reports. MarketResearchReports.Biz services are specially designed to save time and money for our clients. We are a one stop solution for all your research needs, our main offerings are syndicated research reports, custom research, subscription access and consulting services. We serve all sizes and types of companies spanning across various industries.
Contact
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Albany, NY 12207
Tel: +1-518-618-1030
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Website: http://www.marketresearchreports.biz/
Blog: http://mrrfocuseconomics.blogspot.com/
The advice gap presents an opportunity for the financial advice industry. Firms that are able to innovate and offer low cost solutions will prosper in future, while those who do not address this part of the market will forfeit share to online competitors.
Browse Full Report With TOC: http://www.marketresearchreports.biz/analysis-details/consumers-and-financial-advice-uk-april-2014
Table of Content
Introduction
Note on definitions
Note on consumer research
Abbreviations
Executive Summary
The financial advice market
Numbers of financial advisers continue to increase post-RDR
Figure 1: Number of advisers, by sub-type, December 2012, July 2013 and January 2014
The RDR – More phases are implemented
Economic and demographic context
A lack of disposable income makes it difficult for consumers to save
The consumer
Consumers use banks for advice more regularly than financial advisers
Figure 2: Types of financial advice used, January 2014
Referrals and recommendations are still a popular way for consumers to find an adviser
Figure 3: Methods for finding financial advice, January 2014
Face-to-face remains the most popular way to receive financial advice
Figure 4: Accessing financial advice, January 2014
The cost of advice is still a concern for consumers
Figure 5: Attitudes towards financial advice, January 2014
The majority of consumers would prefer ad hoc advice
More consumers would prefer to make their own decisions rather than rely on professional advice
Figure 6: Attitudes towards managing finances, January 2014
What we think
Issues and Insights
Online tools can make financial advice affordable for younger consumers
The facts
The implications
Flexibility is the key to attracting wealthier consumers
The facts
The implications
Banks and building societies still have the perfect platform for offering mass-market advice
The facts
The implications
Advice through money advice or employers can give consumers greater confidence
The facts
The implications
Trend Application
Keep it local
DIY administration for cheaper financial advice
Mintel Futures: Generation Next
To Get Download Full Report with TOC: http://www.marketresearchreports.biz/sample/sample/195641
Regulatory Context
Key points
The RDR – More phases are implemented
Capital adequacy rules to be delayed until 2017
First thematic review on how firms are implementing the RDR
Second thematic review on delivering independent advice
Non-advised and simplified advice
RDR has not reduced the financial adviser population
Figure 7: Number of advisers, by sub-type, December 2012, July 2013 and January 2014
Mortgages
MMR comes into force banning most non-advised sales
The 2014 Budget proposes to ‘guarantee guidance’ for consumers at retirement
European regulation
MiFID II could challenge the rules of the RDR
rules on PRIPs could also conflict with the RDR
Economic Context
Key points
A lack of disposable income makes it difficult for consumers to save
Figure 8: Increases in the cost of living and the growth in average wages, January 2008-February 2014
Economic improvement begins to pull down the savings ratio
Figure 9: Quarterly change in UK GDP and Household savings ratio, Q1 2004-Q4 2013
Low interest rates continue to undermine appeal of cash savings
Figure 10: Official bank base rate and three-month LIBOR, January 2007-February 2014
FTSE continued to edge higher in 2013
Figure 11: FTSE 100 and FTSE All-share – Daily index movements, January 2008-March 2014
Consumer Sentiment
Key points
Consumer confidence increased sharply in 2013
Figure 12: UK consumer confidence index, January 1989-December 2013
Consumers’ finances are slowly improving…
Figure 13: Trends in consumer financial situation, June 2009-January 2014
yet 29% feel that their financial position is worse than last year
Figure 14: Trend in financial situation compared to a year ago, July 2011-February 2014
Consumers are more optimistic about the future
Figure 15: Trend in consumer sentiment for the coming year, June 2009-December 2013
Value of Savings and Investments
Key points
Overall, consumers have low levels of savings and investments
Figure 16: Value of savings and investments, January 2014
Financial advisers target affluent consumers
Figure 17: Wealth of advised clients, August 2013
Older consumers are more likely to be seeking financial advice
Figure 18: Value of savings and investments, by age, January 2014
To Read Complete Report with TOC: http://www.marketresearchreports.biz/analysis/195641
Expected Demand for Financial Advice by Product
Key points
The majority of consumers expect to receive advice on a financial product in the future
Figure 19: Expected demand for financial advice by product, January 2014
Younger consumers are more likely to expect to receive advice in the future
Figure 20: Expected demand for financial advice by product, by age, January 2014
Over 55s underestimate their need for pension advice
Wealthier consumers are more likely expect to receive advice on savings and investments
Figure 21: Expected demand for financial advice by product, by value of savings and investments, January 2014
There is potential for cross-selling of services across the advice industry
Figure 22: Expected demand for financial advice by product, by expected demand for financial advice by product, January 2014
Types of Advice Used
Key points
Bank and building societies top list of most used professional source of advice
Figure 23: Types of advice used, January 2014
Financial advisers are more likely to be used by wealthier consumers
Friends and family hold sway with younger consumers
Online channels of advice are widely used to inform financial decisions
People want to learn from the experiences of others
Money Advice Service is yet to attract widespread use as a channel of advice
Employers also remain a niche source of advice
Wealthier consumers are more likely to have used a financial adviser
Figure 24: Value of savings and investments, by types of advice used, January 2014
About us
MarketResearchReports.biz is the most comprehensive collection of market research reports. MarketResearchReports.Biz services are specially designed to save time and money for our clients. We are a one stop solution for all your research needs, our main offerings are syndicated research reports, custom research, subscription access and consulting services. We serve all sizes and types of companies spanning across various industries.
Contact
M/s Sheela
90 Sate Street, Suite 700
Albany, NY 12207
Tel: +1-518-618-1030
USA – Canada Toll Free: 866-997-4948
Website: http://www.marketresearchreports.biz/
Blog: http://mrrfocuseconomics.blogspot.com/
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