The financial adviser has the option to no longer serve an ‘uneconomical’ customer but the life office, especially a mutual, has an inherent duty of care. A failure to support them could prompt the customer to contemplate transferring out, resulting in loss of lifetime customer value and reducing the value of the book of business.
Wealth Wizards was founded on the principle of making advice accessible to the mass market, given only 8 per cent of UK investors receive it.
The ability to offer a digital, streamlined advice solution to these clients, could add real value for Royal London by providing a robust process to support customers who might otherwise be economic advice orphans.
A bonus too for the clients themselves who are arguably the most at risk and in need of help. Whether Wealth Wizards’ service will be extended to include the comprehensive range of other products they may have with Royal London, is yet to be seen.
As an outside observer, it will be interesting to see how this evolves. How Wealth Wizard’s existing customers view the move could be telling. I would not expect a knee jerk reaction but medium term, existing relationships may rely on how the acquisition plays out.
It was interesting that their chief commercial officer departed to Succession this week and you wonder whether there will be a changing of the guard at Wealth Wizards. If so, will they be able to maintain the innovative, purpose driven culture as part of a life office?
Jonathan Warren is a Consultant at Altus