For professional adviser use only

What shape is the financial services industry in?

Here we take a brief look at the current state of the financial services industry and how things could pan out over the next few years.

It was recently reported1 that the average age of an adviser is currently mid-50’s and with nearly 7000 advisers expected to retire within the next five years, it is estimated that only around 18,000 advisers will still be working in ten years from now.

People wanting advice will tend to seek the help of advisers that are a similar age to them. With an ageing population, the demand for financial advice has never been greater and advisers who are themselves approaching retirement, are in a great place to understand the needs of clients in a similar position.

The same can also work in favour of young advisers entering the market – young people will normally seek advice from younger advisers. The industry needs to address two challenges – how do we encourage new blood into the industry and how can we encourage younger people to become clients earlier?

The IFA community needs to focus on where this fresh adviser talent is going to come from and understand that there is a need for technology-savvy advisers to service Millennials and Generation Z. Both Millennials and Generation Z are distinct groups with differing attitudes towards technology, finance and spending that are distinctly different from previous generations.

Many banks have now developed their own training schemes which are encouraging younger, technology-focused advisers to consider financial advice as a career. This could help the IFA sector in the longer term, as the logical career move for advisers starting out in a bank is to progress to a more holistic ‘financial planning’ IFA role.

More universities are now offering financial planning courses with industry-specific qualifications, enabling graduates to come out qualified to level four and in some cases, level six. In addition, a number of firms have developed inhouse academies or schools, with the intention of training future advisers inhouse.

At Sandringham we are continually reviewing the state of the financial services industry and adapting. If you are interested in learning more about us, or joining Sandringham as an Advising Partner, why not speak to us.


Related Blogs

View all Blogs

Disconnected systems are letting advisers down – but not at Sandringham

Research1 has highlighted the effect that poor systems integration is having on advice firms, not just by impacting profits, but also in terms of time and resources, and crucially affecting client service.  The research surveyed over 100 advisers and asked questions about processes in three main areas: new business, annual reviews and fee reconciliations. Results […]

Read more

Sandringham can help you to scale the compliance mountain

Recent research by Fidelity Funds Network1 asked advisers to name and rank their top three current business challenges. The results show that four out of five (80%) advisers rank compliance and regulatory change in the top three challenges, with 50% of respondents to the survey considering it to be their number one challenge. Common complaints […]

Read more

FCA confirms its position

Last week saw the release of the Financial Conduct Authority’s (FCA’s) board minutes from their meeting on 28 February 2019. These minutes make interesting reading and indicate that the FCA board seemed to be amenable to the idea that backing the increase in the Financial Ombudsman compensation limit from £150,000 to £350,000, with effect from […]

Read more