To celebrate World Youth Skills Day, we’re proud to announce our important new partnership with the Verve Foundation. We are supporting places on the ‘We Are Change’ initiative to attract and train the next generation of financial advice professionals. And, in the U.S. we are embarking on a relationship with the Financial Health Network.
At intelliflo, we talk a lot about the importance of widening access to financial advice. The financial advice gap is growing and millions of people are not getting the help they need with their personal finances. The trends in our industry point to the need for more financial advisers overall and for all to better address the needs of younger investors. That’s why we’re investing in We Are Change to make a positive impact on these negative trends.
Advisers need to target younger investors
From the financial adviser’s perspective, with demand for advice outstripping supply, older people who have already accumulated wealth and with a more immediate need for later life planning, are the obvious target market.
But financial advice firms aren’t charities, they are commercial organisations. Why should they consider targeting a less well-off demographic? Because it makes good business sense. Attracting younger clients who are building their careers and accumulating wealth encourages loyalty, creating an opportunity to grow your business via a forward pipeline of wealthy clients. In addition, Wealth distribution is also set to change, from largely comprising housing and defined benefit pension wealth, to becoming more reliant on investment wealth. Advisers have an important role to play in ensuring that future generations are accumulating the assets they need to live comfortably throughout their lives.
The adviser population is shrinking
We need to attract more talent into the industry and encourage new people to actively choose financial services as a career. It’s time to try something different: to work together as individuals, businesses and professional bodies to expand the financial adviser community, address some of the challenges facing young people today and broaden the reach of financial advice.
- The number of financial advisers in the UK increased by just 3% in the two years to 2020.
- 8% of advisers expect to leave the industry within the next five years and a further 2% intend to reduce their levels of business.
How intelliflo and We Are Change can help