Here’s a story to brighten up any IFA’s Friday. It seems that eight out of ten financial advisers are feeling happy about the future.
The good news comes from National Savings and Investments (NS&I) which has just launched the first edition of its quarterly survey of financial advisers.
And the biggest conclusion of this first Financial Advice Barometer (which covers February to July, 2016) is that 83% of advisers are currently either ‘very confident,’ or ‘fairly confident’ about the future prospects for the financial advice industry.
The main reason for this confidence, say the respondents who helped compile the report, is the increased complexity facing consumers in today’s financial world and it’s this which leads to a greater need for professional financial advice.
The report is based on surveys and one-off topical questions. In February the one-off question suggested that the potential impact of ‘robo-advice’ on the industry may be overstated. The answers came back with 75% of advisers saying they were ‘not that concerned,’ or ‘not at all concerned’ about the impact that robo-advice could have on their business in the future. Indeed, many respondents cited the importance that clients still attach to face-to-face meetings. What’s more, only 3% of advisers were ‘very concerned’ about the impact of robo-advice on their business.
Further questions revealed that 48% of advisers answered ‘yes’, or ‘sometimes’, to the question as to whether significant market uncertainty, or volatility, encouraged them to move a bigger proportion of their clients’ funds into cash. Also, that the cash deposit market remains king and that security is the most important priority.
Acting Chief Executive of NS&I Steve Owen said: “Although the financial advice market is rapidly changing, this first edition of NS&I’s Financial Advice Barometer suggests that cash deposits remain a key component in advisers’ proposition to their clients. More than 500,000 NS&I customers have invested over £50,000 with us and over 5,000 of our customers hold over £1 million, so it is extremely important that we engage with financial advisers. This new quarterly survey is a further way for NS&I to do that and at the same time provide insight into trends within the cash deposit market over time.”
