Martin Lewis, the over 50s and the impact of technology on the advice process

I was just browsing the Financial Reporter news section when I saw a headline which captured my attention a little more than the others. This read 'Over 50s trust Martin Lewis more than financial advisers'.

The LiveMore Barometer surveyed 2,000+ people within this age group. When asked which financial advice they trust the most, the highest number of 50-90 year-olds (35%) put Martin Lewis top – above friends and family (30%) and their own online research (29%).

Bank managers were the least trusted, cited by just 15% of respondents with financial advisers fairing slightly better (22%).

I’m not sure where to start with this but it certainly does not shine a good light on the advice process. So why is this figure so low? Is it because this demographic are less trusting of financial advisers or have had bad personal experiences in the past? What is the impact of a jargon free, plain English approach as often used by Martin Lewis to get the right message across? And where does technology sit within this discussion?

Let’s take these one at a time.

In my experience of the intermediary mortgage market, the depth, professionalism and value attached to the advice process has never been higher. However, I can appreciate that some personal and anecdotal experiences may make the over 50s shy away from some areas of financial advice. After all, they have lived through a period which has seen a fair share of investment scandals, endowment issues and, of course, the credit crunch. From a pure mortgage perspective, I believe that this figure would be significantly higher.

Martin Lewis does a great job of breaking down and simplifying many complex financial products and I think that we, as an industry, could learn a lot from such an approach. He is also an advocate of seeking professional advice for a variety of financial matters but, funnily enough, this is sometimes a message which can get a little lost for some people.

Technology. It was interesting to see that 29% opted to trust their own online research as opposed to a financial adviser. There is now a huge wealth of information available on the internet if you ask the right questions and have the ability to filter through those responses which could steer you in the wrong direction. It would be interesting to see how many people who have undertaken research on their mortgage still end up speaking to a broker? I appreciate this research was aimed at the over 50s but with the later life lending market growing at pace, I would still be intrigued to see the answer.

For those respondents to this survey who may not have seen a financial adviser in the past 5, 10 or even 20 years due to bad experiences or negative perceptions, they may not realise the positive impact that technology has had on financial services across the board. It has vastly improved accessibly to new products and services. From a compliance and regulatory perspective, technology has revolutionised reporting mechanisms and accountability to help greatly elevate levels of professionalism across the board. It has also increased advisers ability to better service their clients’ needs in a more efficient and secure manner. While also ensuring that these service standards can be maintained through the delivery of more engaging communications through a variety of mediums to ensure clients are updated and informed on any relevant changes to their current and future products.

The financial advice process may not have always been perfect in the past, or sometimes in the present. But, for those firms who are correctly integrating the right solutions, tools and systems to meet the ever-shifting needs of their clients and their business, technology can have a positive impact for all generations throughout the financial advice process.