Technology has the potential to drive advice gap transformation among younger clients, as firms report taking on a larger number of clients under 40, says Dynamic Planner.
According to its report Advice 2025, nine in 10 firms have taken on a larger number of clients under 40 than previously, while the number of firms communicating with clients using technology is also on the rise.
Almost a third of advice firms have adopted client facing apps and one in two now communicate with customers via an app or a portal, allowing customers to engage with their financial plan in the same way they do with online banking.
Those surveyed aged 24-35 said they consider ‘making it easier to check in on progress’ as the priority for consumers. At the same time, 45% of those surveyed by Dynamic Planner put a digital led service at the top of their list for changes they plan to make in the future.
With younger people traditionally underserved by the financial advice industry, Dynamic Planner said access to quality financial advice and planning earlier in life has the potential to be transformative for outcomes. The biggest driver is clients themselves, with two thirds of firms reporting they are receiving increased enquiries from under-40s.
Women and younger advisers, in particular, are seeing more interest from this group.
Firms also recognise the importance of securing their own client pipelines, with over half actively seeking clients in the under-40 bracket.
Rowan Whittington, product director at Dynamic Planner, said: “These findings from Advice 2025 suggest a transformational shift in how firms are serving the under 40s, an age group that historically has been difficult to reach at the beginning of their savings and investment journeys.
“Apps enable firms to engage with this age group of digital natives in a way the industry could have only dreamed of before. It’s an exciting time – the industry is shifting to align with consumer expectations and going digital eases the communication burden for advisers and clients alike. Targeted support will only accelerate this.”
Whittington added: “Younger people are taking control of their finances earlier and accessing the advice they need. Firms that recognise the value of this client group and use the tools at their disposal to service them engagingly and profitably can not only drive better saving and investing behaviours but help to secure their own futures.”
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