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Tech-savvy clients shun face-to-face advice

The proportion of consumers who research, buy and manage financial products online is set to increase from 4.1 per cent today to 11 per cent in 2018.

That number is expected to soar from 20.4 per cent in 2023 to 44.9 per cent in 2033.

This internet generation will have a 138 per cent higher chance of having never used an adviser over people who are not tech-savvy in their financial affairs.

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Overall, this will increase the odds of a client shunning an adviser in favour of using the internet by 24.3 per cent.

At present, the number of young people who are classed as tech-savvy in relation to their finances stands at 75.3 per cent, compared to 48 per cent those over the age of 70.

A tech-savvy consumer is more than twice as likely to never use an adviser than a client who is not tech-savvy.

The number of people who do not use the internet will fall from 3.4 per cent today to almost zero by 2028.

Adviser comment:

Simon Webster, director of Kent-based Facts & Figures, said: “The internet has already changed the way we do business, but the advice sector has been slower to respond due to the average age of advisers and a sufficient number of clients.

But, there is a fundamental difference between information and advice. Clients who want to make informed decisions about their wealth and are time-poor, and will be willing to pay somebody for a reliable service. I don’t think this will change.”