Almost half of UK advisers (43%) say they are confident about their business’ prospects over the next 12 months, according to the ‘Book of Stories 2.0’, a new white paper by wealth manager Charles Stanley. Nearly a fifth (19%) have taken on more advisers to cope with client demand over the last 12 months.
The Book of Stories, which aims to help advisers navigate the challenges of intergenerational wealth transfer and engage the next generation of clients, also found that two in five (39%) advisers say that the events of 2020 have boosted their confidence in the future of their business. Only 4% say they are now much less confident.
Similarly, more than half (51%) of financial advisers say they are positive about the UK’s economic future over the next 12 months and nearly two thirds (64%) feel the same about the next 5 years, with 30% feeling ‘very’ positive about the longer-term outlook.
The past twelve months have been challenging, forcing advisers to respond accordingly. COVID-19 has affected 77% of businesses significantly, with only 5% of advisers being affected insignificantly or not at all. Nearly three quarters of advisers have been impacted significantly by the rise of digitisation (74%), and a similar number by changing work patterns (69%).
Perhaps as a knock-on effect of the pandemic, advisers are anticipating other longer-term shifts such as changing investment trends. They also expect clients to be more engaged in their finances and envisage more engagement from a younger audience, emphasising the value of extending the planning function to the whole family, covering more than one generation.
John Porteous, Group Head of Distribution, Charles Stanley said: “Despite huge economic and social disruption during 2020, it is encouraging to see that advisers have risen to the challenge. COVID-19 has acted as a catalyst and accelerated trends such as digitisation and changing work patterns, and advisers have navigated these choppy waters and come out the other side.
“It is clear that client behaviours are changing with more appetite to engage with their financial futures, often at an earlier stage than they might have previously done. Many advisers are optimistic about their prospects in both the shorter and longer-term, having recognised that new opportunities are being created. Adapting and developing a role as a trusted partner for the whole family and engaging with younger generations can help them future-proof their businesses.”
Visit www.charles-stanley.co.uk/advisers/book-of-stories to get a free copy of the ‘Book of Stories 2.0’ whitepaper. It is designed to help advisers understand and engage with the next generation and consider the changes to working practices needed to succeed in the intergenerational planning environment.
