Pandemic reshapes how clients engage with their financial adviser for the long term

• More than half (56%) of advised individuals are now happier to use remote advice channels – such as video calls – than they were before the first lockdown
• Nearly three-quarters (73%) of clients want some degree of remote advice from their adviser in the future, with just a fifth (20%) wanting only face-to-face interaction
• Nearly a third (31%) of advised individuals started using remote advice channels for the first time during the pandemic

The coronavirus pandemic has prompted a surge in individuals using remote options – such as video calls – for the first time to speak to their financial adviser, and has re-shaped how clients expect to seek advice in the future, according to new research by abrdn.

Nearly a third (31%) of the 1,000 advised individuals polled by abrdn said they used remote advice channels for the first time after the country first entered lockdown in March 2020.

The largest shift in pre and post-lockdown behaviour was seen among those aged 66 and above. Here, more than a quarter (28%) reported using remote options for the first time – a 200% increase from the 14% that said they were already using remote options before the pandemic hit.

While the use of remote options like video calls is likely to have been driven by the constraints of lockdown, clients are now more receptive to remote advice channels and are seeking ongoing flexibility in how they engage with their adviser. 

More than half of advised individuals (56%) are now happier than they were before the first lockdown to receive advice remotely, prompted by greater familiarity with digital tools like Teams and Zoom (57%), and the convenience and efficiency it offers their lifestyles (47%).

And, going forward, nearly three-quarters of clients (73%) want an element of remote advice from the adviser. More than half (51%) want a mix of in-person and remote advice, with just a fifth (20%) wanting only face-to-face interaction. 

Noel Butwell, CEO, adviser platforms, at abrdn, said: “The pandemic has accelerated a shift away from the traditional formats of giving and receiving advice.

“While in the past face-to-face meetings were the norm, these findings show the majority of clients now want to use tools like video calls for consultations and will be seeking ongoing flexibility in how they interact with their adviser.

“Advisers are no strangers to tailoring their approaches to meet clients’ specific needs, and we know the advisers we work with are continuing to offer a remote advice service for clients who want it.

“This is a win-win for everyone. Clients benefit from bespoke interactions that suit them and their schedule, while the speed and convenience can help advisers increase capacity and drive efficiencies by cutting down on factors like travel time and cost.

“Ultimately, it can even help tackle the advice gap – increasing the accessibility of advice by making advisers easier to reach for clients who are time-poor, and enabling advisers to maximise the number of clients they can support, wherever they are based.”

Alex Chappell, Investment Manager at DB Wood said: “We’ve seen our clients embrace the use of technology during the pandemic, and for a lot of them, that is how they want to continue to interact with us. Everyone has different needs and we have always offered an advice service that is flexible and adaptable to individual requirements.

“But there is no doubt more will continue to use technology for the most part when dealing with us. We have also seen that for some, the perfect solution is a combination of face to face and online, though irrespective, we will always offer the service our clients want.

“The upside to more online interaction means we have more time for our clients new and old.”

Alongside a change in attitudes to remote advice, abrdn’s research also revealed that more than a third (35%) of individuals now contact their adviser more frequently than they did before March 2020.

When asked why, clients pointed to more complex financial needs (47%) and a greater appreciation as to the value of advice (56%) – the latter of which rose to 61% for clients who said they currently speak to their adviser more than once a month.

Noel Butwell added: “The advice sector has more than proved its worth during the disruption of the pandemic – helping clients adapt to challenging circumstances, and providing invaluable reassurance and guidance.

“It’s incredibly encouraging to see this translate now into closer adviser – client relationships.

“When it comes to building on these relationships, having support from technology will be key. The right platform technology can help advisers deliver insightful, high quality advice at every life stage, and provide tools to help simplify complex financial situations to help give clients peace of mind.”

ENDS

Media enquiries

For further information, contact:

Calum Anderson
E: Calum.Anderson@citypress.co.uk
T: 0131 460 7922

Patricia Corrigan
E: Patricia.Corrigan@abrdn.com
T: 0791 782 2874

 

Methodology

Research of 1,001 UK adults who have a financial adviser that they speak to at least once every year.

Fieldwork was carried out by Sapio in September 2021.

Notes to Editors

At abrdn, we empower our clients to plan, save and invest for their futures.

We structure our business into three areas – and together they reflect our focus on enabling our clients to be better investors:

Investments: We work with clients to create solutions across markets, asset classes and investment strategies – combining our global network of investment professionals with research, data and technology.

Adviser: We offer market-leading platform technology and tools that enable UK wealth managers and financial advisers to look after the diverse needs of their clients.

Personal: We help people throughout the UK plan for their financial futures – through our financial planning business and our digital investing services.

Through the expertise, insight and innovation of our team, we aim to help clients create more ways for money to make an
impact. We set our sights on giving them more confidence to achieve their goals, and more clarity about what they need next. And we focus on delivering outcomes that are more than just financial – by investing sustainably to build a better world.

We’re a global business. We manage and administer £532 billion of assets for our clients, and we have over 1 million shareholders. (Figures as at 30 June 2021)

abrdn is the single global brand for all areas of our business. abrdn.com

The value of investments and the income from them can go down as well as up and investors may get back less than the amount invested.