As individuals, households and businesses readjust and look ahead to a new era and recovery, deVere Group, one of the world’s largest independent financial advisory organisations, said demand for financial advice is up by 24% in April, almost a quarter from the previous month.
“Disruption and dislocation have hit entire economies and businesses of all sizes and in all sectors,” said Nigel Green, deVere’s founder and chief executive.
“This has had a very real and very immediate impact on the finances of individuals, households and businesses around the world.
“Suddenly, many realised that they didn’t have sufficient money behind them, they didn’t have contingency plans. This, as they know, could have consequences for the lifestyles and life opportunities of themselves and loved ones and, for those in business, for the long-term sustainability of their firm.”
Green said that with financial matters back in sharp focus, for many ‘I should have’ becomes ‘I need to have.’
“This most unusual situation has dramatically underscored that no-one really knows what is around the corner. Now, more than ever, people are seeking to be as financially prepared as they can for any eventuality.”
The deVere CEO explained that the same thing happened following the 2008 financial crash, which served as a wake-up call for that they needed to become financially secure, with a subsequent increase in demand for advice.
“Even then – when confidence in financial institutions, especially traditional banks, was at an all-time low – people understood that as the world evolves, your financial planning strategies might need to also.”
This, Green said, is driving the increasing demand. But in this tech-driven era, how do people want this advice delivered?
According to a poll carried out by deVere amongst existing and prospective clients, 52% said ‘face-to-face’, 42% said they prefer videocall platforms like Zoom, and 6% answered ‘by telephone.’
“Given the circumstances and how much things have changed, I was surprised that the preferred option for the delivery of financial advice remains face-to-face. But video communication is only 10% behind, as it is a new platform for most people.”
Green added that, “the world has fundamentally changed – and it will do so more and maybe at a faster pace.”
The deVere poll also revealed that 72% of client respondents feel the world has changed permanently.
In addition, 80% said that similarly to what happened after the 2008 crash, new companies will emerge and the same ones that were successful in the past were not guaranteed to succeed again.
“With these shifts impacting people’s finances, the majority of our new clients are seeking advice on savings plans, investments, foreign exchange, pensions and retirement planning and tax planning,” he notes.
The deVere CEO concluded that 2020 has been a year of change.
“For an increasing number, this includes a change in the way we prioritise, with long-term financial security for ourselves and our loved ones ever-more important.”
