intelliflo, a global leader in adviser technology, exposes a glaring truth: financial advice in the UK remains stubbornly skewed by factors such as gender, age, relationship status, and geographic location.
To gain a deeper understanding of the individuals who fall within the advice gap and identify the steps needed to close it, intelliflo created the Advice Map of Britain. As a dominant player in adviser practice management systems, with a market share of 52% according to NextWealth, intelliflo collated data from three million advised clients to uncover who is taking advice – and more importantly, who isn’t.
Married Men Over 50: Main Recipients of Financial Advice
The UK’s financial advice ecosystem is not as inclusive as we hoped. The data from the Advice Map of Britain exposes a glaring truth – married men over 50 still hold a significant sway in terms of accessibility to financial advice, accounting for one in five individuals receiving financial advice in the UK.
Golden Years or Information Divide? Unmasking the Age Disparity
The Advice Map of Britain unveils a generational tug of war, with 68% of advised clients being over 50. Meanwhile, those in their 40s, make up 14%. Reaching a younger demographic, who would arguably benefit most from earlier access to advice, is more difficult, with the under 30s accounting for just 4% of the advised population.
This situation gives rise to concerns, especially with the steady increase in life expectancy. As highlighted by Professor Andrew J. Scott at the intelliflo 2023 connected conference, a child born in the UK today faces more than a 50% likelihood of reaching the age of 105. With longevity continuing to expand, the significance of financial planning has never been more pronounced.
Relationship Status: Love’s Impact on Financial Advice
intelliflo’s data suggests that relationship status significantly predicts the likelihood of someone is to get advice. 44% of people getting advice are married or in a civil partnership, compared with just 11% that are single, 6% who are widowed and just 1% who are divorced. Factors at play here may include the correlation between age, marriage, and seeking advice. Older people are more likely to be married – according to the Office for National Statistics (ONS), five times (19%) as many people aged 70 years and over are married than those under 30 years (3.7%). Moreover, life events such as having children and buying a house, often associated with marriage, can prompt individuals to seek financial advice.
Gender Dynamics: The Divide Persists
Gender disparities persist in the realm of financial advice. A stark divide emerges: 43% of those receiving professional financial counsel are female, while 50% are male. Northern Ireland stands out with the widest gender advice gap, displaying 43% female clients versus 54% male, while London boasts the narrowest gap at 47% female and 50% male. As the United Kingdom grapples with the intricacies of this gender gap, intelliflo’s findings stir discussions on equal access to financial guidance.
Mapping Inequality: Geographic Disparities Unveiled
intelliflo’s Advice Map of Britain exposes geographic pockets where financial advice thrives. Scotland and the South West of England is where the greatest proportion of the local population are receiving advice, each at 7.2%. Conversely, London and North East England is where the least proportion of people are receiving advice, each at 4%.
Widening access to financial advice and closing the gaps
In a year marked by inflation, high interest rates, and stagnant wages, the Advice Map of Britain emphasises the importance and pressure of expanding access to advice. It underscores that married men over 50 are prevalent among advised clients, accounting for one in five individuals receiving financial advice in the UK. To create a more inclusive financial advice landscape, intelliflo advocates the integration of technology into the advice journey.
Technology’s Threefold Impact
intelliflo’s CEO, Nick Eatock, shares the three ways technology can enhance access to financial advice:
- Lowering the Cost of Client Servicing:
By streamlining processes, advisers significantly enhance efficiency and overall business performance. Research from intelliflo reveals a notable disparity between advisers who leverage technology to its full potential and those who do not. In 2022, tech-embracing advisers generated an impressive 54% more revenue per adviser and 76% more ongoing revenue per adviser. This cost-efficiency paves the way for broader accessibility to financial advice.
- Boosting Capacity to Serve New Clients:
intelliflo’s research also showed that high-tech adopters were able to service 39% more clients than their low-tech counterparts. Against the backdrop of recruitment challenges within the financial advice sector, increasing advisers’ capacity will play a vital role in broadening accessibility to financial advice.
- Reaching Clients in New Locations:
Furthermore, technology facilitates reaching clients across geographical locations and accommodating those with busy lifestyles. Remote servicing expands access to financial advice for a wider spectrum of people.