Lisa Caplan, head of financial advice at Nutmeg, says action is needed to tackle the advice gap in the UK.
“Too few people know what sort of financial advice is available, how it could help them or where to find it,” Caplan says.
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“Add to this a traditionally prohibitive cost and many people are left making financial decisions on their own.”
Caplan states Nutmeg’s approval for the Financial Conduct Authority (FCA)’s decision to review the financial advice market.
Nutmeg cites a YouGov survey that found a third of adults sought the counsel of their family when it comes to financial matters, as opposed to 23% going to a financial adviser.
The research also showed that only 13% of people aged 25-34 and 20% of 35-44 year-olds use a financial adviser.
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By GlobalDataThis will not be surprising to some, who will argue that one must first possess an amount of wealth worth receiving advice about, which is less likely to be the case for the younger generations.
This is rather borne out by the survey which offers the reasons people give for not using a financial adviser, with 32% saying they do not have money for it to be worthwhile, and 24% saying they do not need one.
Twenty-one per cent say financial advice is too expensive.
Nutmeg financial advice
Nutmeg stress that their USP is in making investments more accessible to more people, which should at least help to dispel the myth that one must have a certain amount of wealth before starting to invest.
In time, the services of professional financial advisers could become more universally accessible as well.
Caplan continues: “Good financial advice can make a huge difference to your future – whether it’s picking the right investment, ensuring you’re taking the right amount of risk for you or ensuring you’re making the most of your tax allowances – professional financial advice could help you achieve your goals sooner.
“In the next few years, the way financial advice is given is going to radically change.
“People are used to interacting with technology to make so many aspects of their life easier, and financial advice is no different.
“We’ll only be able to solve the advice gap with greater digitisation.”
Digital wealth manager Nutmeg launched a personalised advice service in October 2018 to supplement its robo-advisory platform.
Nutmeg boasts around 65,000 customers and now manages over £1.5bn in assets.
