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​Advice gap hits 13.2m as digital offers solution

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​Advice gap hits 13.2m as digital offers solution

The advice gap has jumped from 12.7 million to 13.2 million adults over the past 12 months according to Boring Money.

It has published a new report that examines how the advice gap has evolved as the UK has emerged from Covid.

There are nine million adults with investments today who express low confidence in managing said investments.

Also there are four million adults with more than £10,000 or three months’ worth of salary exclusively in cash savings who are willing to invest.

Fewer than one in four of all UK investors receive financial advice today.

Nearly half of those in the advice gap prefer the concept of digital advice over traditional face-to-face advice.

Forty seven per cent of those in the gap prefer digital advice and 26% prefer robo advice-based options.

Boring Money chief executive Holly Mackay said: “The number of DIY investors has risen to an all-time high and – with this – the number of unconfident investors who would like some help, but do not want traditional advice.

“Key barriers remain trust, understanding and affordability. Willingness to engage with digital solutions – from video calls through to hybrid advice models – has grown and we see this as a hugely exciting growth market over the coming years.”

The report shows a clear uptick in how consumers want to engage with financial advice.

In 2019, only a quarter of adults were comfortable with receiving advice via video call. In 2022, that has more than doubled to reach 60%.

In addition, three in five savers and investors that fit into the advice gap would be open to accessing advice online, versus 34% of those currently advised.

Mackay adds: “The main opportunity is to attract new customers, rather than to poach current customers from more traditional advice models. However, although satisfaction with advice remains high, once lower-cost digital or hybrid models are explained, nearly four in 10 people would be interested in learning more. We also see substantial interest in fixed price one-off advice packages as people question the lack of flexibility in current models.”

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