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Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Consumers and Financial Advice market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

This report covers the UK financial advice market. This includes a look at the size and makeup of the market and regulatory developments, as well as discussion of providers’ strategies and marketing activity. Mintel’s exclusive consumer research explores the use of different types of financial advice and guidance, common prompts to seek advice, the willingness to pay for advice and the perceptions of different types of advice services. Finally the Report explores a number of attitudes towards financial advice, including the perceived value of advice and willingness to share personal information.

Expert analysis from a specialist in the field

Written by Richard Shepherd, a leading analyst in the Financial Services sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The financial advice market enjoyed a year of healthy growth in 2018, as revenues reported to the FCA showed an 8% increase on 2017. Looking ahead, overcoming challenges such as convincing consumers of the value of advice and security of online systems are key to further success Richard Shepherd
Senior Financial Services Analyst

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What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
    • Executive Summary

        • The market
          • Advice revenues rose by 8% in 2018
            • Figure 1: Total revenue earned by firms advising on retail investment business, mortgage business and non-investment insurance business, 2014-18
          • Companies and brands
            • Robo-advice continues to be the key area of innovation
              • Companies spent £11.5 million on above-the-line advertising in the last year
                • Figure 2: Total above-the line, online display and direct mail advertising expenditure on financial advice, 2014/15-2018/19
              • The consumer
                • Mortgages are a gateway to financial advice
                  • Figure 3: Products arranged or amended in the last three years, May 2019
                • A third of advice clients used an IFA or mortgage adviser
                  • Figure 4: Sources of financial advice used in the last three years, May 2019
                • Price comparison sites are the primary source of guidance
                  • Figure 5: Sources of financial guidance used in the last three years, May 2019
                • Major life events dominate prompts to seek advice
                  • Figure 6: Likely prompts to seek professional financial advice, May 2019
                • Consumers are split on willingness to pay for advice
                  • Figure 7: Likelihood to pay for financial advice, May 2019
                • IFAs and mortgage advisers are seen to have greater expertise
                  • Figure 8: Correspondence Analysis, May 2019
                • Consumers are keen to keep control of their personal data
                  • Figure 9: Willingness to provide financial advisers with personal and financial data, May 2019
                • Online information is a threat to advisers’ authority
                  • Figure 10: Attitudes towards financial advice, May 2019
                • What we think
                • Issues and Insights

                  • Focus on life events, not products, could boost appeal of advice
                    • The facts
                      • The implications
                        • Online advice has a long way to go to convince the average consumer…
                          • The facts
                            • The implications
                              • …but online guidance is a real threat to advisers
                                • The facts
                                  • The implications
                                  • The Market – What You Need to Know

                                    • Advice revenues rose by 8% in 2018
                                      • The FCA opens reviews of the effects of the RDR and FAMR
                                      • The Financial Advice Market

                                        • Advice revenues rose by 8% in 2018
                                          • Figure 11: Total number of firms and revenue earned by firms advising on retail investment business, mortgage business and non-investment insurance business, 2014-18
                                        • Financial advisers and insurance intermediaries make up 84% of firms
                                          • Figure 12: Share of financial advice firms, by type of firm, 2018
                                        • Increase in PPI disputes fuels rise in advice complaints
                                          • Figure 13: Number of complaints made to financial services firms associated with advising, selling and arranging, 2013-17
                                          • Figure 14: Number of complaints made to financial services firms associated with advising, selling and arranging, by product type, H2 2018
                                      • Regulatory Context

                                        • The FCA launches review of RDR and FAMR effects…
                                          • …and opens consultations on mortgage advice
                                            • Call for compulsory advice on pension savings
                                              • Single Financial Guidance Body relaunched as Money and Pensions Service
                                              • Companies and Brands – What You Need to Know

                                                • Robo-advice continues to be the key area of innovation
                                                  • £11.5 million spent on above-the-line advertising in the last year
                                                  • Competitive Strategies

                                                    • Robo-advice continues to be the key area of innovation
                                                      • Lloyds and Schroders partner up to challenge advice giants
                                                        • Nutmeg launches personal financial advice service
                                                        • Advertising and Marketing Activity

                                                          • Advisers spent £11.5 million on above-the-line advertising in the last year
                                                            • Figure 15: Total above-the line, online display and direct mail advertising expenditure on financial advice, 2014/15-2018/19
                                                          • Santander invested heavily to promote its digital advice service
                                                            • Figure 16: Top six advertisers for above-the line, online display and direct mail advertising expenditure on financial advice, 2016/17-2018/19
                                                          • Nielsen Ad Intel coverage
                                                          • The Consumer – What You Need to Know

                                                            • Mortgages are a gateway to financial advice
                                                              • A third of advice clients used an IFA or mortgage adviser
                                                                • Price comparison sites are the primary source of guidance
                                                                  • Major life events dominate prompts to seek advice
                                                                    • Consumers are split on willingness to pay for advice
                                                                      • IFAs and mortgage advisers are seen to have greater expertise
                                                                        • Consumers are keen to keep control of their personal data
                                                                          • Online information is a threat to advisers’ authority
                                                                            • Consumers are split on compulsory advice
                                                                            • Product Engagement and Use of Advice

                                                                              • Short-term products prompt greater engagement
                                                                                • Figure 17: Products arranged or amended in the last three years, May 2019
                                                                              • Higher-earners more likely to engage with complex products…
                                                                                • Figure 18: Selected products arranged or amended in the last three years, by household income, May 2019
                                                                              • …which are most likely to require advice
                                                                                • Figure 19: Use of financial advice for different products, May 2019
                                                                                • Figure 20: Use of financial advice for different products, by products arranged or amended in the last three years, May 2019
                                                                            • Types of Financial Advice Used

                                                                              • A third of advice clients used an IFA or mortgage adviser
                                                                                • Figure 21: Sources of financial advice used in the last three years, May 2019
                                                                              • Branch closures are limiting access to advice and guidance
                                                                                • Figure 22: Sources of financial advice used in the last three years, by type of area people live, May 2019
                                                                            • Types of Financial Guidance Used

                                                                              • Price comparison sites are the primary source of guidance
                                                                                • Figure 23: Sources of financial guidance used in the last three years, May 2019
                                                                              • Friends and family are key influences well into adulthood
                                                                                • Figure 24: Use of friends and/or family for financial guidance in the last three years, by age, May 2019
                                                                            • Prompts for Seeking Financial Advice

                                                                              • Two thirds can identify a reason to get advice
                                                                                • Figure 25: Likely prompts to seek professional financial advice, May 2019
                                                                              • Four in ten would seek advice after a change in their family situation
                                                                                • Macro-economic changes have little influence on the average consumer
                                                                                • Paying for Financial Advice

                                                                                  • Consumers are split on willingness to pay for advice
                                                                                    • Figure 26: Likelihood to pay for financial advice, May 2019
                                                                                  • Experience of advice is a huge boost to perceived value
                                                                                    • Figure 27: Likelihood to pay for financial advice, by experience of professional financial advice in the last three years, May 2019
                                                                                • Perceptions of Financial Advice – Correspondence Analysis

                                                                                  • Methodology
                                                                                    • Non-branch advisers are considered to have greater expertise
                                                                                      • Figure 28: Correspondence Analysis, May 2019
                                                                                    • Online services have major hurdles to overcome
                                                                                      • Figure 29: Perceptions of types of financial advice, May 2019
                                                                                  • Attitudes towards Data Sharing and Financial Advice

                                                                                    • Three quarters are reluctant to give ongoing access to data…
                                                                                      • Figure 30: Willingness to provide financial advisers with personal and financial data, May 2019
                                                                                    • …but providers can persuade existing clients
                                                                                      • Figure 31: Willingness to provide financial advisers with personal and financial data, by experience of professional financial advice in the last three years, May 2019
                                                                                  • Attitudes towards Financial Advice

                                                                                    • Online information is a threat to advisers’ authority
                                                                                      • Figure 32: Attitudes towards financial advice, May 2019
                                                                                    • Consumers are split on compulsory advice
                                                                                      • Figure 33: Attitudes towards compulsory financial advice, by age, May 2019
                                                                                    • Advisers’ suggestions can be hamstrung by closed-minded clients
                                                                                      • Figure 34: Attitudes towards financial advice recommendations, by experience of professional financial advice in the last three years, May 2019
                                                                                  • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                    • Abbreviations
                                                                                      • Consumer research methodology

                                                                                      About the report

                                                                                      This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                      • The Consumer

                                                                                        What They Want. Why They Want It.

                                                                                      • The Competitors

                                                                                        Who’s Winning. How To Stay Ahead.

                                                                                      • The Market

                                                                                        Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                      • The Innovations

                                                                                        New Ideas. New Products. New Potential.

                                                                                      • The Opportunities

                                                                                        Where The White Space Is. How To Make It Yours.

                                                                                      • The Trends

                                                                                        What’s Shaping Demand – Today And Tomorrow.

                                                                                      Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

                                                                                      Description