A third of Brits opt for DIY financial planning to avoid fees
According to business advisory firm, Deloitte, the implementation of the Retail Distribution Review will lead to more people choosing DIY financial planning, rather than pay for the price of professional advice.
The report also suggests that more than a quarter will go directly to the product provider having made their own product choices.
Despite this, only a third are confident they have enough knowledge to choose the right financial product.
Andrew Power, lead RDR partner at Deloitte, said: “This poses a big challenge for banks, insurers and fund managers and they will have to rethink how they deal directly with consumers.
“Over the next five years UK-based providers will have to develop and introduce direct-to-consumer business models.
“Large numbers of consumers are not confident they have enough knowledge to make the right financial decisions and so any direct-to-consumer business model must be kept simple and low-cost.
“There is a risk that consumers who do their own research may not buy the right products – keeping longer term savings in cash, or making investments that are too risky, for example.
“Providers will need to develop websites that provide accessible guidance and financial education.”