Speaking at the ABI Retail Distribution Review Conference today, Paul Matthews, Standard Life UK and Europe Chief Executive, told delegates that we have a once in a lifetime opportunity to re-shape our industry.
Matthews said: “At its best financial advice delivers something that is very much in short supply – confidence and optimism for the future. Advisers and providers need to work harder than ever to deliver this, but arguably we’ve never been in a better position to deliver it with better technology, professional standards and transparency set against the recognition that borrowing more can never be the answer.
“I see the changes being made by the regulator as a once-in-a-lifetime opportunity to re-shape our industry to deliver outstanding outcomes for customers. But we need to work together.
“There is a lot to do and we need to recognise that customers demand multiple solutions and access through many different routes. We need to co-exist in a mature manner. We are at a crossroads. We can work together to deliver greater access, engagement and value for consumers, but if we allow self-interest to dominate and do not grasp this once-in-a-lifetime opportunity, the results for all, particularly the customer, will be extreme for some sections of society.”
Matthews continued: “Customers will decide which channels they want to engage with and how. They don’t see that different channels are in competition with each other, and neither should we. Our role is to bring down the barriers between channels, and help them make informed choices to get the best possible outcome. We believe the savings gap can only be addressed by a multi-channel approach, which means:
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Using technology and developing tools to allow and support self-direction.
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Making the workplace a key channel for younger consumers in the accumulation phase of their financial plans
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Facilitating access to professional advice through all channels for consumers that need it.
“Advisers are likely to be focussing where the need and value for advice is greatest, which in many cases could be the consolidation and retirement phases of their financial plans. With 300,000 baby boomers now retiring every year, there is an enormous opportunity for advisers to capitalise on.”
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