Firing line  

Young people building wealth 'effectively ignored' by industry

Young people building wealth 'effectively ignored' by industry

Davinia Tomlinson’s car is an extension of her office these days, as she sits down for an interview with Financial Adviser, while her two daughters play in the house.

It is just one of the many ways lockdown has affected her working life.

For Ms Tomlinson, who set up regulated introducer Rainchq two years ago after completing her MBA, the second quarter of this year has been very busy.

Coronavirus has brought to the fore the importance of financial resilience and saving for a rainy day.

“People are thinking, ‘what do I want my post-pandemic life to look like and how do I make sure I have a stable future?’ Finance is a part of that,” she says

Social media platforms, particularly Instagram, have been very useful in “bringing alive” Rainchq’s brand — where Ms Tomlinson has seen engagement converted into leads.

For her, this increased level of engagement is confirmation that she was right to set up her business, which aims to tackle the problem of certain groups of people being underserved, having had first-hand experience of this herself.

Young people are being ignored

Ms Tomlinson says: “If you are a young person with high net worth, you might be a target for some of the banks. But if you are a young person building wealth, but not yet at the stage where you have acquired a certain amount of wealth, then you are effectively ignored by the industry.

“I considered myself someone who fitted into that category as someone who was underserved and thought I cannot be the only one.” 

As she explored this challenge further, she also came across many women who had not had a positive experience with financial advice.

Already a mother to one child, while on maternity leave for her second, Ms Tomlinson decided she would not return to her investment job, but instead would pursue her business dream.

She adds: “It’s testament to the hypothesis that if you give women access to good quality advice with a person they can relate to and you surround it with a package of support and resources that enables them to pick-and-mix, there is definitely a certain kind of magic that is created from that.”

Three pillars of service

Rainchq customers are predominantly – though not limited to – women, while the model comprises three pillars. The first is financial education, in the form of written and audio content, to demystify finance and investing.

The second is financial advice. All Rainchq customers receive two 90-minute sessions with a qualified IFA; she partners with St James’s Place Wealth Management.

“I was very intentional about who I wanted to work with on this,” Ms Tomlinson says.

“The industry is not particularly well represented by women, so it is really important for me to find someone who women can be comfortable with about having personal private conversations about their life ambitions and about their financial goals.”