2024
9
UK Consumers and Financial Advice Market Report 2024
2024-04-02T11:02:51+01:00
REP7D4EF048_409D_4322_81A5_3FCBC27361E2
2195
171999
[{"name":"Personal Finance","url":"https:\/\/store.mintel.com\/industries\/finance\/personal-finance"}]
Report
en_GB
Rising living costs and interest rates have increased demand for financial advice. Affordability remains a challenge but low-cost digital solutions can help. Saltanat Kuermannal, Financial Services Analyst…

UK Consumers and Financial Advice Market Report 2024

£ 2,195 (Excl.Tax)

Report Summary

Understand the UK Financial Advice Market with Mintel’s market report. Our full report is packed with consumer-led market intelligence, the latest UK financial advice consumer trends and behaviours affecting your business. 

Key Insights Covered in this Report

  • Market size and performance for the financial advice market
  • Regulatory and legislative changes in the market
  • Consumers’ experience of seeking advice
  • Expected future use of financial advice
  • Preferred channels and sources for financial advice and guidance
  • Recent advice experience, including satisfaction with various factors
  • Consumer attitudes towards financial advice

UK Financial Advice Market Landscape

Increased demand for financial advice amid the cost-of-living crisis

Half of individuals across all age groups say that the rising cost of living makes financial advice more important. This sentiment is especially strong among younger demographics, with those aged 25-34 most likely to agree (72%), representing a unique opportunity for financial advisers to engage these young, new customers.

Affordability and transparency in fees remain challenges in the advice market

Addressing affordability in the advice market is challenging, with only 43% viewing financial advice as good value and 42% reluctant to pay for it. Furthermore, 46% feel financial advisers obscure their charges, underlining the need for clearer cost explanations and demonstrations of value.

Digitisation of advice presents opportunities to make it more inclusive and affordable

57% of those aged 18-34 think that fully-automated financial advice is just as good as face-to-face financial advice. Financial advisory firms can leverage this by offering digital-first advice solutions and using influencer marketing on social media that adheres to regulatory standards, thereby efficiently targeting this demographic.

Purchase the full report for a complete overview of the UK financial advice market, including consumer insights and comprehensive market analysis from Mintel’s industry experts. Readers of this report may also be interested in Mintel’s UK Consumer Financial Resilience Market Report.

Report Scope

This report examines the market for professional financial advice in the UK. Advice is distinct from guidance. According to the FCA, definitions are as follows.

  • Advice – a personalised service that recommends a specific product or course of action based on an individual’s particular circumstances and financial goals. Advice is provided by qualified and regulated individuals or online by a regulated organisation. There is usually a fee for this service. Fees will be disclosed before you are asked to commit yourself.
  • Guidance – an impartial/generic service that helps people to identify their options and narrow down their choices (eg via making suggestions), without telling them what to do or which product to buy. Guidance is free unless the provider clearly states otherwise.

Meet The Expert

This report is written by Saltanat Kuermannal. Saltanat joined Mintel in October 2023 as a research analyst in the financial services team. Prior to joining Mintel, Saltanat has worked as a consultant in the real estate sector. She has a PhD in Development Studies with trained backgrounds in Anthropology and International Politics.

Rising living costs and interest rates have increased demand for financial advice. Affordability remains a challenge but low-cost digital solutions can help.

Saltanat Kuermannal
Financial Services Analyst

Table of Contents

    • Key issues covered in this Report
  1. Executive Summary

    • Opportunities for the financial advice market
    • Market dynamics and outlook
    • Graph 1: number of regulated retail intermediary firms, 2018-22
    • Graph 2: total industry revenues of regulated retail intermediary firms, 2018-22
    • Graph 3: proportional distribution of total retail intermediary revenues, by type of business, 2022
    • What consumers want and why
    • Graph 4: proportion of adults who have sought financial advice in the past, 2023
    • Graph 5: preferred channels to receive financial advice, 2023
    • Graph 6: preferred channels to receive financial advice, by age, 2023
    • Graph 7: use of sources of financial guidance in the last two years, 2023
    • Graph 8: overall satisfaction levels with financial advice, 2023
    • Innovation and marketing trends
  2. Market Dynamics

    • Market size
    • Graph 9: number of regulated retail intermediary firms, 2018-22
    • Graph 10: total industry revenues of regulated retail intermediary firms, 2018-22
    • Market segmentation
    • Graph 11: proportional distribution of total retail intermediary revenues, by type of business, 2022
    • Graph 12: proportional distribution of financial adviser firms’ revenues, by type of business and source of revenue, 2022
    • Market landscape
    • Macroeconomic factors
    • Graph 13: GDP, Q1 2021-Q4 2023
    • Graph 14: CPI inflation rate, 2021-24
    • Graph 15: the financial wellbeing index, 2016-24
    • Graph 16: the financial confidence index, 2016-24
    • Regulatory and legislative changes
  3. What Consumers Want and Why

    • Experience of seeking advice
    • Graph 17: proportion of adults who have sought financial advice in the past, 2023
    • Graph 18: proportion of adults who have sought advice from a financial adviser in the last two years, 2023
    • Graph 19: total value of savings and investments, by age, 2023
    • Future use of financial advice
    • Graph 20: plans to use financial advice in the next two years, by previous experience of seeking financial advice, 2023
    • Graph 21: proportion of adults who plan to use a financial adviser in the next two years, by total value of savings and investments, 2023
    • Preferred channels for financial advice
    • Graph 22: preferred channels to receive financial advice, 2023
    • Graph 23: preferred channels to receive financial advice, by age, 2023
    • Graph 24: preferred channels to receive financial advice, by value of savings and investments – NET, 2023
    • Sources of financial guidance used
    • Graph 25: use of sources of financial guidance in the last two years, 2023
    • Graph 26: use of sources of financial guidance in the last two years, by age, 2023
    • Graph 27: consumers who have received financial guidance via information given to them by their employer in the last two years, by household income, 2023
    • Satisfaction with financial advice
    • Graph 28: satisfaction with elements of financial advice, 2023
    • Graph 29: overall satisfaction levels with financial advice, 2023
    • Key driver analysis for satisfaction with financial advice
    • Graph 30: satisfaction levels with the cost of financial advice, by household income, 2023
    • Graph 31: satisfaction levels with clarity of fees/charges, by age, 2023
    • Graph 32: satisfaction levels with clarity of fees/charges, by household income, 2023
    • Attitudes towards financial advice
    • Graph 33: attitudes towards financial advice, 2023
    • Graph 34: agreement with the statement ‘I think that the rising cost of living makes it more important to receive financial advice’, by age, 2023
    • Graph 35: agreement with attitudes, by age, 2023
    • Graph 36: consumers who think fully automated financial advice is just as good as face-to-face financial advice, by age, 2023
  4. Innovation and Marketing Trends

    • Launch activity and innovation
  5. Appendix

    • Report scope and definitions
    • Methodology

Why Mintel?

Gain access to high quality market research with every purchase of Mintel’s consumer reports. Here's what else you can expect when buying from us:

Mintel’s Clients Portal

After your purchase is completed, you’ll receive an invitation to join Mintel’s Clients Portal which provides instant access to supplementary insights from Mintel’s industry experts.

Multiple Report Formats

Mintel’s reports are available in PDF and PPT formats, and arrive in your inbox alongside an excel datasheet, so you can share Mintel’s market intelligence with ease.

Interactive Databook

Mintel’s bespoke consumer data is presented as an interactive website, so you can deep dive into your chosen topic, explore demographics and download specific statistics.

Custom Presentations

Using Mintel’s custom presentation tool, you can easily incorporate selected research data and analysis into a tailor-made presentation to win over clients and stakeholders.

Browse our sample PDF report below:

Click to show report
2024 Sample Consumer Cover

Please Note: All of the figures, graphs, and tables in this sample report have been redacted.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch