THE MAJORITY of consumers would not use a wealth management service even if they had £100,000 to invest, according to new research.
Even though digital services have made professional investment management more accessible than ever, less than a fifth of people said they would use them, a survey by software provider Crealogix found.
In contrast, 56 per cent of Generation Z (those up to the age of 22) and 41 per cent of millennials (aged between 22 and 36) said they would turn to family for investment advice.
Only 30 per cent of respondents across all generations identified banks as somewhere they would go for investment advice.
“There appears to be a misconception that bank savings accounts are the best safe choice for big investments, which is untrue,” said Jo Howes, commercial director at Crealogix UK.
“Wealth management services are falling behind in educating their clients about other low risk investment options which have a better chance of protecting savers from the effects of inflation.
“Risk-averse, long term savers are just one of several market segments where wealth managers have the opportunity to compete more proactively with banks to attract new consumers and their investments.
“By educating people about how to make smarter use of their money, the wealth management sector can regain trust and reputation.
“Digital wealth management technology offers wealth management firms a great new set of opportunities for engaging consumers and helping them manage their money better.”
The pervading impression of wealth management services is that they are elitist, with Londoners and people earning over £75,000 holding this opinion most strongly, according to the survey.