Your IndustryApr 16 2014

Young people will shun face-to-face advice: Williams

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The board director at the Institute of Financial Planning stressed that young people who were taking control of their finances for the first time were not yet ready for a “fully digitalised” service.

However, he said that the younger generation wanted coaching and guidance through more convenient channels and that visiting an adviser in a “dusty office” may not be the way forward.

Speaking at the launch of the MRM Generation Austerity report, Mr Williams said: “The majority of young people begin their financial journeys online and they are not necessarily looking for advisers.

“There is certainly a need for credible, authoritative sources of information online, but there is also still a desire for human interaction.

“Young people are not ready for full digitalisation, where advice is delivered through algorithms without human interference. But we could meet the demand for coaching and help from experts over the telephone, through social media or other online services.

“It does not necessarily have to take place in dusty offices, where someone who looks like your granddad tells you what to do.”

The 16-page report produced by MRM, the financial services PR firm, found that more than one-third of people aged 20-29 were saving towards their first home but 23 per cent were not saving at all.

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Earlier this year James Charrington, chairman of BlackRock’s Europe, Middle East and Africa executive committee, suggested face-to-face advice could not contribute to an industry-wide campaign, led by the Tax Incentivised Savings Association, to promote the value of saving.