More than one third (35 per cent) of people surveyed by the Tax Incentivised Savings Association want better access to everyday financial guidance.
Research commissioned in conjunction with consumer finance website MoneyMagpie in October among 2,606 people, found that of those who want better guidance, 39 per cent were aged 65-75 and a third were aged 35 and under.
The need to develop a framework to improve public access to financial guidance in order to help them make sound financial decisions is one of a series of policy proposals produced by Tisa’s Savings and Investments Policy project.
Back in March, the project stated that developing a Kitemark for financial guidance was among six recommendations aimed at rebuilding a culture for saving across the UK.
Digitalisation of financial products and services was also important to consumers, with 82 per cent now managing at least some of their finances online, while 69 per cent said the ability to do so made them feel more confident about keeping on top of their finances.
However, only 17 per cent manage their pensions online, compared to 97 per cent who manage their current accounts and 67 per cent who buy their insurance online.
The TSIP project has therefore proposed creating a ‘digital identity for UK financial services’ which allows people to view their entire financial portfolio in one online location. It had previously suggested a “digital passport” to give consumers a secure online identity and the ability to see all their savings in one place.
Today’s research, published ahead of Tisa’s annual conference, also confirmed that more than a quarter of consumers would like financial providers to make it easier to switch providers and 21 per cent want better access to credit scores.
David Dalton-Brown, director general of Tisa, said that the findings show there is a real desire for greater accessibility and flexibility and for there to be fewer barriers to moving money from one provider to another.
“Making greater use of technology will make it easier and more appealing to save; simplify the process around financial advice and reduce costs, which can in turn be passed onto consumers.
He also pointed out that the research demonstrated a “significant guidance and advice gap”, the solving of which is a key component of tackling the UK’s savings crisis at both an individual and a national level.
“The Treasury has recently started a consultation on financial advice and this presents a great opportunity to address how we help the public manage their money, including the role that government should play and how this is delivered,” added Mr Dalton-Brown.
Jasmine Birtles, editor at MoneyMagpie, stated that ‘generation Y’ are digital natives and financial services firms need to work harder to engage and encourage them to save and invest in an easier, simpler way.
“With advances in technology and use of mobile accounts now doubling online banking transactions, there is a pressing need for technology to make saving fun, convenient and most importantly safe.”
peter.walker@ft.com
