A transformation could be underway for the advice gap among under 40s, according to new research from Dynamic Planner.
The findings show nine out of 10 advice firms have taken on a larger number of clients in this age group than previously, while at the same time almost a third of firms have adopted client-facing apps enabling customers to engage with their financial plan on the move.
With 1 in 2 respondents now communicating with customers via an app or a portal, customers are able to engage with their financial plan in the same way they do their online banking.
'Digital natives' aged 24-35 see ‘making it easier to check in on progress’ as the priority for consumers. While firms are already working with more customers under the age of 40 than in the past, getting the client-facing digital offering right could be key to attracting and retaining this group.
At the same time, 45% of respondents 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 an industry in which the bulk of clients are aged 45 and over, 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 today’s more financially savvy under-40s. Advice professionals who themselves are earlier in their careers are particularly likely to identify this shift.
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, commented: “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. Its 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.
“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.”
