Advice Gap reaches new high of 13.2 million as interest in digital solutions rises
11 May, 2022
A new report from Boring Money published on 11th May shows that 13.2 million UK adults sit in the Advice Gap, up from 12.7 in just 12 months.
There are 9 million adults with investments today who express low confidence in managing said investments, and 4 million adults with more than £10,000 or three months’ worth of salary exclusively in cash savings who are willing to invest.
Fewer than 1 in 4 of all UK investors receive financial advice today.
Nearly half of those in the Advice Gap prefer the concept of digital advice over traditional face-to-face advice – 47% of those in the Gap prefer digital advice and 26% prefer robo advice-based options (excluding those selecting ‘None of the these’).
Boring Money CEO Holly Mackay comments:
“The number of DIY investors has risen to an all-time high and – with this – the number of unconfident investors who would like some help, but do not want traditional advice. Key barriers remain trust, understanding and affordability. Willingness to engage with digital solutions – from video calls through to hybrid advice models – has grown and we see this as a hugely exciting growth market over the coming years.”
The report shows a clear uptick in how consumers want to engage with financial advice. In 2019, only a quarter of adults were comfortable with receiving advice via video call. In 2022, that has more than doubled to reach 60%.
In addition, 3 in 5 savers and investors that fit into the Advice Gap would be open to accessing advice online, versus 34% of those currently advised.
Mackay continues:
”The main opportunity is to attract new customers, rather than to poach current customers from more traditional advice models. However, although satisfaction with advice remains high, once lower-cost digital or hybrid models are explained, nearly 4 in 10 people would be interested in learning more. We also see substantial interest in fixed price one-off advice packages as people question the lack of flexibility in current models.”
Notes to editors:
1. Boring Money is an independent research and publishing house which provides information, tips and Best Buy tools to savers and investors. Currently, the website has over 200,000 monthly readers.
The business conducts regular research with industry providers and UK consumers to track the developing DIY investment market from both the customer and provider perspective. Boring Money holds test accounts with over 25 investment platform providers. It also holds regular focus groups and interviews with consumers to ensure regular input and feedback from the user perspective.
Founder Holly Mackay has worked in the investment industry for 20 years and is supported by a team of 28 researchers, analysts, technologists and marketing execs. Boring Money is not regulated to give personal financial advice nor is it regulated by the industry watchdog.
2. Sample size and dates of research:
An online survey of 6,305 nationally representative UK adults conducted in January 2022.
An online survey of 3,126 nationally representative UK adults conducted in April 2022.
Online survey of 71 financial advisers, conducted in April 2022.
3. Definitions of digital advice and robo advice used in survey:
Digital advice
An adviser who will manage your finances for you, but there will be more work on your part. For example filling out a questionnaire about your financial situation online and collating your own documents.
You will have an initial meeting on videocall or over the phone, but there will be less opportunity for regular communication with an adviser.
Medium cost.
Robo advice
You fill out a questionnaire online on subjects such as value of savings, spending habits and attitude to risk and receive recommendations based on your responses.
You will not be able to speak to an adviser directly.
Low cost.
Please contact:
Holly Mackay, CEO & Founder
07984 609 827
holly@boringmoney.co.uk
Mikhail Ismail, Head of Marketing
mikhail@boringmoney.co.uk
