New report: COVID-19 opens opportunities for advisers
New research has confirmed that the COVID-19 pandemic has accelerated the take-up of digital advice but the good news for financial planners is that clients have rarely been more aware of the importance of good advice.
The research, conducted by KPMG, has found that while many people regard financial advice as a discretionary spend for which they are not prepared to pay much, those that use financial advisers see them as essential.
It found that more than 70% were satisfied with their financial planner – compared to 59% of respondents who were satisfied with their superannuation funds.
It said that while more clients had been reviewing the services provided by advisers, there had also been greater engagement than with respect to insurance or super, and planners had been more pro-active in contacting customers.
“More flexibility in both the services and products they provide and in how they engage – with two-thirds of consumers keen to keep this wholly online – were also clear findings,” the KPMG research said.
Commenting on the findings, KPMG’s insurance and wealth strategy lead, Tim Thomas said that despite the financial pressures many people faced, there was much from the research that financial planners could take heart from.
“Australians who have been impacted by the crisis see financial advice and planning as essential and general awareness of the importance of advice is growing due to the crisis,” he said. “The challenge for planners is turn that underlying potential into services that consumers are willing to pay for.”
“Personal relationship with advisers is often as important as the funds invested in, so regular engagement is critical, and this must be through a variety of channels, given that two-thirds now want to go wholly online,” Thomas said.
“With such a community focus on improving the affordability and accessibility of financial advice the big opportunity for advice organisations is to respond to customers’ shift in mindset to engage financial planners through a hybrid of face to face and digital interactions, which should go some part to reducing the cost of advice delivery without compromising on its quality.”
Recommended for you
A third private equity player has emerged in the bidding war to acquire Insignia Financial, rivalling Bain Capital and CC Capital.
The proportion of advisers working at a privately owned licensee rose to 78 per cent in the fourth quarter of 2024 as over 1,000 advisers left a diversified firm.
Advice around a client’s concessional contribution cap was the reason for the latest written direction by the Financial Services and Credit Panel.
The financial advice business has expanded its range of services with the introduction of Apt Wealth Legal Services to meet clients’ evolving needs in estate planning and family law.
