You are here: Home - Insurance - News -

Brits embrace remote advice

0
Written by:
29/08/2012
UK consumers are warming to the idea of alternatives to face-to-face financial advice, with 25% claiming they would be willing to receive advice online or over the phone if it saved them money.

According to research carried out by Prudential, around 11% of people would be interested in receiving advice either on the phone or online, while 10% would want an online-only service and 4% phone-only.

Four in 10 would be happy to fill in a fact find online before sitting down with an adviser if that reduced the fee payable.

The research revealed that 47% of people would expect advice by phone or online to cost at least half as much as a face-to-face service, while 18% are more willing to pay for financial advice now than they were before the global financial crisis.

Prudential conducted the nationwide research to gauge people’s attitudes to potential new business models for financial advice, ahead of the introduction of the Financial Services Authority’s Retail Distribution Review (RDR), which comes into force on 1 January 2013.

Younger people are more keen on the idea of remote meetings than their older counterparts, with 39% of 18 to 34-year-olds saying they would be happy to receive financial advice on the phone or online or through a combination of phone and online, compared to 23% of 35 to 54-year-olds.The support reduces to 15% among those aged over 55.

Russell Warwick, Prudential’s distribution change director, said:

“Giving advice over the phone or online is a logical progression for advisers, and reflects the need to meet changing customer demand. We don’t believe that an ‘all or nothing’ approach is set to emerge but we do expect firms to start integrating non face-to-face aspects of client servicing into their models over time, as clients become more comfortable about receiving advice remotely.

“Providing these services can be run in a way that is cheaper than the face-to-face approach, it should free up advisers’ time, making their businesses more efficient and enabling them to focus on securing new clients. Conducting annual reviews by phone, for example, would cut travel time which, when added up for all clients, could amount to hundreds of hours over the course of a year.”

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2201382-richard-pease-new-pic
Experts predict ‘stampede’ into European equities

Henderson’s Richard Pease has predicted a ‘stampede’ into European equities as soon as the government bond bubble bursts and investors...

Close