Investment Bonds - UK -
The Consumer – Attitudes and Behaviour
towards Financial Services and Advice
Key points
●
The data indicate a
more cautious consumer with a high proportion showing a preference for
well-known providers and some fearing more financial services firms may collapse
in the future.
●
Consumer research
data signal that people are increasingly doing their own research before making
an investment decision.
●
Many older and
wealthier individuals still have a tendency to rely on professional advice.
This is probably because of their more complex financial needs.
Nearly half of respondents like to
do their own research
In
order to gauge consumer attitudes and behaviour towards the financial services
industry, respondents were asked if they agreed with the following series of
statements.
“Still thinking about saving and
investing, please indicate which, if any, of the following statements apply to
you?”
FIGURE 39:
Agreement with select statements toward financial services
Base: 1,948 adults aged 18+
|
|
%
|
|
|
|
|
I
like to do my own research before making important financial decisions
|
45
|
|
I
would only use a well-known savings or investment provider
|
23
|
|
I
have little confidence in the financial services industry
|
15
|
|
I
am concerned that more savings and investment companies may collapse in the
future
|
15
|
|
I
am generally satisfied with the investment advice I have been given in the
past
|
14
|
|
I
tend to rely on expert advice (eg from a financial adviser or stockbroker)
before making important financial decisions
|
14
|
|
I'm
not very confident when it comes to making decisions about where and how to
invest my money
|
14
|
|
I
mainly use internet to help me research important financial decisions
|
10
|
|
I've
had poor investment advice in the past
|
10
|
|
I
believe that the worst of the financial crisis is now over
|
1
|
|
|
|
|
None
of these
|
12
|
|
Don't
know
|
5
|
SOURCE:
Ipsos MORI/Mintel
The
data here highlight a strong preference by consumers for carrying out their own
research when making an important financial decision, with only a minority of
respondents stating that they tend to rely on expert financial advice. On the
one hand this is an indication of an increasingly financially savvy British
consumer but it is also a sign, that for the most part, basic financial
services products do not typically require the advice of an IFA. As data on
product ownership has highlighted, there is very low ownership of more complex
and higher-risk products, which are primarily sold with independent financial
advice.
It
is also important to highlight that the data here also reflect a more cautious
UK consumer, with a relatively high proportion of consumers saying they are
concerned that financial services firms may collapse in the future and a even
higher proportion saying they would only use a well-known savings and
investment provider. Finally while hardly any have stated that they believe the
worst of the financial crisis is over, it appears consumers have not entirely
given up on the financial services industry with just 15% of respondents say
they have little confidence in the financial services.
Owners of more complex products more
likely to consult an IFA
FIGURE 40:
Product ownership by agreement with select statements toward financial services
|
|
All
|
Any Savings Account
|
Any Pen-sion
|
Any NS&I Product
|
Other*
|
Equity ISA/ Shares/ Collectives
|
Any Invest-ment Bond
|
Property Invest-ment
|
|
Base:
adults aged 18+
|
1,948
|
1,180
|
746
|
423
|
342
|
282
|
76
|
54
|
|
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|
|
|
|
|
|
|
|
|
|
|
I
like to do my own research before making important financial decisions
|
45
|
52
|
56
|
59
|
53
|
57
|
47
|
74
|
|
I
would only use a well-known savings or investment provider
|
23
|
31
|
33
|
37
|
35
|
45
|
46
|
35
|
|
I
am concerned that more savings and investment companies may collapse in the
future
|
15
|
20
|
25
|
29
|
26
|
32
|
39
|
24
|
|
I
have little confidence in the financial services industry
|
15
|
16
|
22
|
22
|
16
|
22
|
21
|
36
|
|
I
tend to rely on expert advice before making important financial decisions
|
14
|
18
|
20
|
19
|
20
|
24
|
38
|
29
|
|
I
am generally satisfied with the investment advice I have been given in the
past
|
14
|
19
|
20
|
19
|
23
|
27
|
29
|
15
|
|
I'm
not very confident when it comes to making decisions about where and how to
invest my money
|
14
|
16
|
16
|
16
|
18
|
23
|
25
|
15
|
|
I
mainly use the internet to help me research important financial decisions
|
10
|
10
|
13
|
13
|
16
|
16
|
14
|
12
|
|
I've
had poor investment advice in the past
|
10
|
13
|
16
|
19
|
16
|
21
|
26
|
35
|
|
I
believe that the worst of the financial crisis is now over
|
1
|
1
|
1
|
1
|
2
|
2
|
2
|
2
|
*
includes child’s savings account, guaranteed equity bond from bank or building
society and endowment policy (not linked to mortgage)
SOURCE:
Ipsos MORI/Mintel
Although
a small sample size of investment bond owners means that statistical error must
be taken into consideration, it is still possible to look at people who report
ownership of equity investments as an indicator of how investment bond
policyholders may view the financial services industry.
From
the data above the most glaring difference between owners of more complex
financial products and people who tend to own more basic products is that there
is a clear indication they have more experience with financial advisers.
Additionally,
perhaps because they have been more badly burned as a result of the current
meltdown in financial markets, they are also more concerned about using
well-known financial providers and more pessimistic about the possibility of
more firms collapsing in the future.
People nearing retirement more
likely to rely on advice
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