Don't just take our word for it

Before we invested the significant time and money into bringing MAP to market, we sought to test the wealth of anecdotal evidence we had of demand for such a service.

So, we conducted research amongst 1,500 people aged between 20 and 50, earning from under £15k to nearly £100k, working in different occupations and regions across the UK. The results of which we present here.

We believe the findings paint a picture of a growing appetite for digital financial advice solutions.

Priced out of the benefits of advice

When asked about the reasons for not having had financial advice up until now, unsurprisingly by far the highest number of responses (38%) put it down to cost and a further 16% believed it was only for ‘wealthy people’. It is worth noting here that on average, respondents said they would be willing to pay £182 a year for a hybrid advice a service.

We believe the workplace holds a pivotal role in helping to bridge the advice gap. We say that because workplaces have established comms channels, which, through signposting, would instantly address the issue of 23% of people having no idea where to start.

There is also the tacit endorsement from a trusted source, their employer, which would go some way to addressing the concerns of the further 20% for whom knowing who to trust is an issue.

Interestingly, 29% didn’t think they needed advice. While we didn’t drill down into their thinking behind that answer in this research, we know just how transformative having a tailored financial plan could be for people, and it has nothing to do with the level of their wealth.

Clearly, there is still a lot to be done to advocate for the benefits of advice – evidenced by the 12% who do not see the benefits of it.

If you’ve not had financial advice from a professional person / service, what do you think is the reason for this?
it costs too much	38%
I don't see an immediate reason to use it	29%
No idea where to start	23%
Don't know who to trust	20%
It's only for wealthy people not me	16%
Advantages of advice are not made clear/Do not see the benefits of it	12%
I don't have time	11%
I would rather get it from personal friends / family instead of a professional body	10%
Friends / Family advised against it	5%

Rapidly evolving digital natives

Despite the fact that 75% of respondents had not used digital financial advice, 64% thought it was likely that personalised digital financial advice services would eventually take over from traditional advice models, with only 18% thinking that it was unlikely.

We found that, 53% of this research group said they would be interested in trying digital financial advice. And over half (51%) said they are confident with the thought of managing their finances online.

Meanwhile, 30% already use apps for banking, and a further 20% currently use apps to access what they see as ‘financial advice’. The blurring of guidance and advice means we would urge caution with that 20% figure.

When asked who they currently turn to for help, self-reliance top trumped all other sources at 48%. Whereas their employer was cited by just 7% of respondents.

Those are two figures we believe have a real chance of being flipped by making affordable financial advice available in the workplace.

When you think about managing your money, who do you turn to for help?
Yourself (own judgement)	48%
Websites I.e. moneysupermarket.com, Martin Lewis, etc.	38%
Family and friends	35%
An app (on your phone, tablet, or similar) from your bank(s) that displays balances	30%
An app (on your phone, tablet, or similar) for financial advice	20%
A financial adviser	18%
Appointment with your bank	15%
Your employer	7%

The workplace as access point

Sixty-two percent of respondents said that they would feel positive and would use a digital financial advice service if it was offered by their employer for free and 24% said they would feel positive but probably wouldn’t use it.

Furthermore, 32% said that they would feel positive and would use a digital financial advice service if it was offered by their employer at a discount , with 41% saying they would feel positive but probably wouldn’t use it.

We wanted to better understand what was behind that reluctance to engage even if the service was provided for free.

What, if anything, would put you off using digital financial advice services?
Paying too much for little return	48%
Being sold products under the guise of advice	34%
Being used as a way to make me pay for an adviser	27%
It being too complicated to use	27%
Not being able to talk to someone	26%
If the brand was not reputable / well-known	21%
Too clunky or confusing to use	21%
Being offered too limited range of solutions	19%

What stood out for us here was the wholly understandable desire still to be able to speak to someone (26%), which confirmed the need for offering a hybrid solution where the employee has the option to speak to a human adviser at some point in the process.

The exact same number of respondents said that if they knew there was someone they could talk to, it would give them the confidence to try a digital financial advice service.

Which of these statements do you agree with the most?
If I could get the benefit of financial advice for free by going online, I would	37%
I would use online financial advice if I knew it was regulated and backed by a trusted company	32%
If I could get the benefit of financial advice at a fraction of the cost by going online, I would	28%
Knowing there is someone I can talk to while accessing online advice gives me the confidence to try it	26%

The frequency of interactions is a key metric. A huge one in four (24%) said they saw themselves using digital financial advice services on a monthly basis, 17% said they would use weekly, and 14% said they would use it every couple of months.

What they would expect to be able to engage with is listed below.

What specific areas do you expect a digital advice service to cover?
Budgeting and saving	56%
Investing	54%
Pension planning	52%
Mortgages	48%
Debt management	46%
Saving life goals	37%
Insurance products	37%

What's next?

One fact stands out in the advice debate: those who have had advice may be better off and more financially confident.

What our research suggests is that making financial advice more widely available is less an act of faith and more a direct response to a very real challenge of ensuring that confidence can be shared by everyone.

What it ultimately means for advisers of all stripes, is that there is now a cost-effective solution to make low-margin clients commercially viable.

And that means that no one will be priced out of benefiting from the life-changing impact of timely, professional advice in future.