英国消费者及金融谘询市场

Abstract

This report examines the key issues facing the market for financial advice. It considers current economic factors and the impact of proposed regulatory changes. The size of the intermediary market, and the main markets for financial advice are assessed, while the report also considers recent market developments. Mintel' s consumer research provides a valuable insight into consumer attitudes towards financial advice. This covers an assessment of product and asset ownership, the sources of financial advice, barriers to advice and also consumer perceptions of the main channels of advice.

Key themes of the report:

• Social and demographic trends suggest the need for financial advice will continue to increase. However, low levels of financial engagement continue to undermine market expansion.
• The market still suffers from relatively high levels of mistrust, which stems from previous miss-selling scandals and perception of commission-ledbias.
• The current economic slowdown will create challenging conditions for those operating within the market for financial advice, particularly for those offering mortgage and other borrowing advice.
• FSA proposals to reform the retail investment market and the introduction of a national money guidance service will have major implications for the future structure and outlook of the market.
• The Internet is becoming an important source of financial advice, this is set to increase in the future and will pose a major challenge to traditional forms of financial advice.
• Consumer research highlights the difference in attitudes towards various channels of advice, in terms of knowledge, cost, trust and other emotional factors.

Table of Contents

• Issues in the Market
• Key issues in the market
• Abbreviations
• Insights and Opportunities
• Forward thinking
• Looking beyond HNW
• Harnessing the Internet
• Targeting a new demographic
• Friends and family have major influence
• Changing and maximising reputations
• Market in Brief
• Key consumer findings -- Sources of financial advice
  • Figure 1: Sources of savings and investment advice, January 2008
• Internet is creating a more independent approach to financial advice
• IFAs are viewed as expert, but branch staff seen as most reliable
  • Figure 2: Best and worst performers for word associations for each channel of advice, January 2008
• The changing landscape of advice
• Intermediary market size
  • Figure 3: Number of FSA directly authorised retail intermediary firms, by primary category, January 2006-December 2007
• Main markets for financial advice
• Market developments and innovations
• Market Background
• Key points
• Overview of sources of financial advice
  • Figure 4: Different sources of financial advice
• Depolarisation -- providing more choice
  • Figure 5: Overview of depolarisation
• High street banks since depolarisation
• HSBC and Barclays commit to multi-tie model
• Others focus on their own bancassurance operations
• The Changing Landscape of Advice
• Key points
• An ever-changing market
• RDR signals wholesale changes for advice market
  • Figure 6: Overview of future market for advice, under current FSA proposals, June 2007
• RDR has provoked widespread reaction
• Industry reaction
• Mixed feelings over CAR
• The RDR and the mortgage and protection markets
• RDR -- potential impact on the market for financial advice
• Generic advice -- A national money guidance service
• Money guidance service -- impact on market for financial advice
• Broader Market Environment
• Key points
• Current economic context
• A more cautious approach
• Concerns over the housing market
• Increased stockmarket volatility
• Household debt continues to rise
• FSA warns over economic conditions...
• ...however uncertainty can increase demand for advice
• Making ends meet is number one priority...
  • Figure 7: Financial priorities over the next 12 months, by order of significance, January 2008
• ...although saving is still on the radar for many
• Expected financial activity falls to a new low
  • Figure 8: Quarterly indices of expected consumer financial activity, by savings/investment, borrowing and debt repayment activity, 2002-07
• More people will be managing more wealth
  • Figure 9: Socio-demographic composition of United Kingdom, adults aged 15+, 2006-12
• Growth in ABs will lead to increased demand for advice
• Increased life expectancy driving need for advice
  • Figure 10: Life expectancy projrections for people aged 65, by gender, 1987-2052
• Greater need for self-sufficiency
• Lifestyle changes increase need for advice
• Increasingly complex products
• Internal Market Environment
• Key points
• The ongoing remuneration debate
• Move towards CAR
• Costs of regulation
• The impact of Mifid
• RDR reopens the qualifications debate
• The PR battle
• Only 12% of FOS complaints are IFA-related
• Consumer apathy is a major barrier
• Poor financial capability increases inertia
  • Figure 11: Ability to describe specific financial products, by gender, September 2006
• Growth in Internet usage
  • Figure 12: British Internet penetration at home/work/study or elsewhere, 2001-07
• Two thirds browse the Internet for information
  • Figure 13: Types of activity undertaken on the Internet in the last three months, October 2007
• The rise of price-comparison sites
• Strengths and Weaknesses in the Market
  • Figure 14: Strengths and weaknesses of the consumer market for financial advice
• Strengths of market for financial advice
• Weaknesses of market for financial advice
• Trade Perspective
• Participating companies
• RDR prompts a mixed response
• Potential implications of RDR
• Fees v commission
• Potential implications of money guidance service
• High street will remain pivotal in providing mass-market advice
• The Internet and financial advice
• Looking to the future
• Market Size -- Intermediaries
• Key points
• Number of directly authorised firms continues to decline
  • Figure 15: Number of FSA directly authorised retail intermediary firms, by primary category, January 2006-December 2007
• Steady growth in financial advice firms
  • Figure 16: Number of directly authorised financial advice firms, January 2006-December 2007
• Strong growth in number of mortgage ARs
  • Figure 17: Number of directly authorised mortgage and other home finance intermediaries, January 2006-December 2007
• Number of GI intermediaries falls by 12%
  • Figure 18: Number of directly authorised general insurance intermediaries, January 2006-December 2007
• Consolidation and acquisitions to continue
• Main Markets for Financial Advice
• Key points
• Greatest demand for mortgage and pension advice
  • Figure 19: Estimated ' potential market size' for selected financial products and advice, May 2007
• Mortgage lending exceeds £360 billion in 2007
• Intermediaries are a common source of advice
  • Figure 20: Sources of mortgage advice, December 2006
• IFAs account for more than 80% of individual pension market
  • Figure 21: Proportional distribution of new APE premiums for UK individual pension business, by channel, 2003-07
• Stockmarket volatility impacts sales of collective investments
  • Figure 22: Retail sales of unit trusts and OEICs- UK domiciled, 2000-07
• Bancassurance gaining share in protection market
  • Figure 23: Proportional distribution of new APE premiums for UK individual protection business, by channel, 2003-07
• IFAs losing share in retirement income market
  • Figure 24: Proportional distribution of premiums for new retirement income products, by channel, 2003-07
• General insurance -- Intermediaries under pressure
  • Figure 25: Proportional distribution of UK personal lines general insurance, by channel, 2002-06
• Market Overview and Key Players
• Market structure for financial advice
  • Figure 26: Basic overview of market for financial advice
• Key players in IFA market
• The Tenet Group
• Sesame
• Bankhall
• Simply Biz
• Key players in retail banking advice market
• Barclays Financial Planning
• Lloyds TSB/Scottish Widows
• Market Developments and Innovations
• Key points
• More firms embrace online advice
• HNW individuals seek advice of Peers
• Commissions used to reduce premiums
• FSA targets financial advice at new mums
• Popular online adviser moves to TV
• Wrap platform developments
• Brand Communication and Promotion
• Key points
• NMR
• £18.7 million spent advertising financial advice in 2007
  • Figure 27: Overview of total adspend on financial advice services, 2003-07
• Direct mail accounts for most adspend in 2007
  • Figure 28: Overview of media type used to advertise financial advice services, 2007
• Wealth management firms increase adspend
  • Figure 29: Top 15 advertisers of independent financial advice, 2003-07
• Scottish Widows top adspend for non-independent advice
  • Figure 30: Top 15 advertisers of non-independent financial advice, 2003-07
• The Consumer -- Product and Asset Ownership
• Key points
• About Mintel' s consumer survey
• Internet penetration
• Overview of product ownership
• Most popular products are bought rather than sold
  • Figure 31: Overview of product ownership (not savings or investment), January 2008
• Level of debt could provide opportunities for advice
• Main markets for financial advice
• Over-35s are key target for advice
  • Figure 32: Profile of key demographics for product ownership, in main markets for financial advice, January 2008
• Ownership of savings and investment products
• Cash dominates savings and investment products...
  • Figure 33: Overview of ownership of savings and investment products, January 2008
• ...but inflation could encourage people to seek advice
• Overview of savings and investment ownership
• Typical investor is AB, male and over 45
  • Figure 34: Profile of key demographics for ownership of savings and investment products, January 2008
• More than a third of savers have at least £10,000 in assets
  • Figure 35: Overview of assets held (excluding main residence), January 2008
• Asset levels increase with age
  • Figure 36: Profile of key demographics for overview of different level of assets held, January 2008
• Mid-level savers have most potential for cross-selling
  • Figure 37: Level of assets held by overall product owership, January 2008
• High levels savers more sophisticated
  • Figure 38: Level of assets held by type of savings and investments held, January 2008
• The Consumer -- Sources of Advice
• Key points
• Half of savers have used a bank branch for advice...
  • Figure 39: Sources of savings and investment advice, January 2008
• ...but less than a fifth expect to do so in the future
• Overview of source for advice
• IFA Internet -- Internet in general, Internet (financial) forums Accountant or solicitor Employer -- Adviser through work, employer Age is major influence on source of advice
  • Figure 40: Key demographic profile of the sources of advice used in the past for savings and investments, January 2008
• IFAs appeal to young affluent women
  • Figure 41: Key demographic profile of the sources of advice people expect to use in the future, January 2008
• IFA usage linked to wide product ownership
  • Figure 42: Overall financial product ownership, by sources of advice used for savings and investment advice, January 2008
• Pension holders more likely to consult IFA and Internet in future
  • Figure 43: Overall financial product ownership, by sources of advice most likely to be used in the future for savings and investment advice, January 2008
• Two thirds with more than £30,000 in savings have consulted an IFA
  • Figure 44: Level of assets held by sources of advice used in the past for savings and investments, January 2008
• Mid-level savers most likely consult branch staff in the future
  • Figure 45: Level of assets held by sources of advice most likely to be used in the future for savings and investments, January 2008
• Four out of ten savers have used more than five sources of advice
  • Figure 46: Number of sources of financial advice used in the past, January 2008
• Only a quarter take advice on important financial decisions
  • Figure 47: Agreement with statements about saving and investing, January 2008
• Over-45s most likely to seek expert advice
  • Figure 48: Profile of key demographics for those in agreement with statements about saving and investing, January 2008
• Two thirds with poor advice had consulted IFAs/branch staff
  • Figure 49: Sources of advice used in the past for saving and investments, by agreement with statements about saving and investing, January 2008
• Own research or expert advice?
• The Consumer -- Barriers to Advice
• Key points
• Three fifths of adults prefer to do own financial research
  • Figure 50: Attitudes towards selected barriers to advice, January 2008
• Cost is barrier for young, but commission is issue for older adults
  • Figure 51: Attitudes towards selected barriers to advice, by gender and age, January 2008
• ABs are most concerned about commission
  • Figure 52: Attitudes towards selected barriers to advice, by socio-economic group and family status, January 2008
• Pension holders most likely to lack trust in advice
  • Figure 53: Attitudes towards selected barriers to advice, by overall product ownership, January 2008
• Mid-level savers keen to do own research
  • Figure 54: Attitudes towards selected barriers to advice, by level of assets held, January 2008
• Internet research leads to lower levels of trust
  • Figure 55: Agreement with statements about saving and investment, by sources of advice used in the past for savings and investments, January 2008
• The Consumer -- Attitudes to Channels of Advice
• Key points
• Internet provides value for money but is seen as risky
  • Figure 56: Best and worst performers for word associctaions for each channel of advice, January 2008
• IFAs provide expertise but branch staff are seen as safe pair of hands
  • Figure 57: Responses to words associated with knowledge and risk, by different channels of advice, January 2008
• Telephone sales staff are the least trusted
  • Figure 58: Responses to words associated with trust, by different channels of advice, January 2008
• IFAs compete with Internet over cost
  • Figure 59: Responses to words associated with cost, by different channels of advice, January 2008
• Bank branches are seen as welcoming and IFAs as intimidating
  • Figure 60: Responses to words associated with emotional factors, by different channels of advice, January 2008
• High-level savers see IFAs as more reliable than bank branch staff
  • Figure 61: Responses to words associated with knowledge and risk of IFA and bank branch channels, by level of assets held, January 2008
• Low-level savers least likely to trust IFAs
  • Figure 62: Responses to words associated with the trustworthiness of IFA and bank branch channels, by level of assets held, January 2008
• A quarter of mid-level savers believe bank branch advice offers VFM
  • Figure 63: Responses to words associated with the cost of IFA and bank branch channels, by level of assets held, January 2008
• High-level savers more likely see IFAs as reassuring
  • Figure 64: Responses to words associated with the emotional factors of IFA and bank branch channels, by level of assets held, January 2008
• Half of IFA users trust in their expertise
  • Figure 65: Responses to words associated with knowledge and risk of IFA and bank branch channels, by sources of advice used in the past for saving and investments, 2008
• Internet appears to erode trust in main channels
  • Figure 66: Responses to words associated with the trustworthiness of IFA and bank branch channels, by sources of advice used in the past for saving and investments, 2008
• IFA costs could see people turn to media for advice
  • Figure 67: Responses to words associated with the costs associated with IFA and bank branch channels, by sources of advice used in the past for saving and investments, 2008
• IFA users broadly positive about bank branch staff
  • Figure 68: Responses to words associated with emotional factors about IFA and bank branch channels,, by sources of advice used in the past for saving and investments, 2008
• Targeting opportunities -- Attitudes to the main channels of advice
  • Figure 69: Categorisation of word association statements
• More than half are positive about bank staff as a source of advice
  • Figure 70: Overview of attitudes towards IFAs and Bank/building society branch staff, January 2008
• Who is open to IFA advice?
  • Figure 71: Key demogrpahic findings for IFA attitudinal target groups, January 2008
• Key targets for branch advice
  • Figure 72: Key demogrpahic findings for Bank branch attitudinal target groups, January 2008
• Some people remain indifferent to financial advice
  • Figure 73: Cross tabulation of groups 1) IFA customers and 2) bank branch staff customers, January 2008
• Appendix -- Broader Market Environment
  • Figure 74: Total PDI, consumer expenditure and savings at current prices, 2003-12Figure 75: Number of mortgage approvals by type of loan, 1999-2007Figure 76: Overview of household debt, balances outstanding, 1997-2007
• Appendix: The Consumer -- Product Ownership
  • Figure 77: Overall product ownership, by gender, age, soco-economic group, household income, housing tenure, region, daily newspapaers, sunday newspapers, daily internet usgage, mobile phone providers and supermarket usage, January 2008
  • Figure 78: Types of savings and investment products held, by gender age, soco-economic group, household income, housing tenure, region, daily newspapaers, sunday newspapers, daily internet usgage, mobile phone providers and supermarket usage, January 2008
  • Figure 79: Level of assets held, by gender age, soco-economic group, household income, housing tenure, region, daily newspapaers, sunday newspapers, daily internet usgage, mobile phone providers and supermarket usage, January 2008
• Appendix: The Consumer -- Sources of Advice
  • Figure 80: Sources of advice used in the past for savings and investments, by gender age, soco-economic group, household income, housing tenure, region, daily newspapaers, sunday newspapers, daily internet usgage, mobile phone providers and supermarket used, January 2008
  • Figure 81: Sources of advice likely to be used in the future for savings and investments, by gender age, soco-economic group, household income, housing tenure, region, daily newspapaers, sunday newspapers, daily internet usgage, mobile phone providers and supermarket used, January 2008
  • Figure 82: Number of sources of advice used in the past by channel of advice, January 2008
  • Figure 83: Agreement with statements about saving and investing, by gender, age, socio-economic group, gross annual household income and housing tenure, January 2008
  • Figure 84: Agreement with statements about saving and investing, by region, daily papers, weekend papers, daily personal internet usage and supermarket usage, January 2008
• Appendix:The Consumer -- Attitudes to Channels of Advice
  • Figure 85: Responses to words associated with knowledge and risk of different channels of advice, by level of assets held, January 2008
  • Figure 86: Responses to words associated with the trustworthiness of different channels of advice, by level of assets held, January 2008
  • Figure 87: Responses to words associated with the cost of different channels of advice, by level of assets held, January 2008
  • Figure 88: Responses to words associated with the emotional factors of different channels of advice, by level of assets held, January 2008
  • Figure 89: Responses to words associated with knowledge and risk of different channels of advice, by sources of advice used in the past for saving and investments, 2008
  • Figure 90: Responses to words associated with the trustworthiness of different channels of advice, by sources of advice used in the past for saving and investments, 2008
  • Figure 91: Responses to words associated with the costs associated with different channels of advice, by sources of advice used in the past for saving and investments, 2008
  • Figure 92: Responses to words associated with emotional factors about the different channels of advice, by sources of advice used in the past for saving and investments, 2008
  • Figure 93: Number of positive/negative views held greater than the number of negative/postive views held -- Independent financial advisers
  • Figure 94: Number of positive/negative views held greater than the number of negative/postive views held -- Staff at bank/building society branch