IFA Sector Starting to Close in on Online Opportunity
10 July 2008
IFA Sector Starting to Close in on Online Opportunity
10 July 2008
-
Over two thirds of IFAs now have a website although only half of these are promoting their website cost effectively on Unbiased.co.uk’s online searches
-
In advance of RDR, member IFAs continue to raise their Qualification game
-
‘Investment and Savings’ is still the most common area of member IFA expertise
The latest ‘State of the IFA Nation’ report from Unbiased.co.uk reveals that in an ever expanding online word, the IFA market is starting to make better use of online opportunities.
The online opportunity
In recent years, the internet has grown in importance for consumers researching their financial advice options and with online access amongst UK households now topping 61%2, this trend is set to continue. This evolution in online space has had an inevitable impact on the IFA world, with 94% of the 575,000 enquirers requesting details of local member IFAs through Unbiased.co.uk’s ‘Find an IFA’ services each yearnow doing so online.
Of Unbiased.co.uk’s member IFAs, 96% offer their email address as a means of communication and over two thirds (67%) of member IFA firms now have a website – however only 38% (just over half those with a website) are promoting their website and e-mail address cost effectively on Unbiased.co.uk’s online searches.
|
Member IFA current E-offering |
May-08 |
% of total |
|
Email address |
8375 |
96% |
|
Web address |
5815 |
67% |
|
Online Marketing Package (OMP) subscribers |
3320 |
38% |
However, as the web has gradually become the most important source of new leads after personal referrals, member IFAs are increasingly recognising the importance of being ‘visible’ online to make sure consumers can find their details on the virtual high street. Over 3,320 member IFAs now subscribe to Unbiased.co.uk’s Online Marketing Package (OMP). The OMP offers an enhanced service which is applied to member IFAs’ entries on Unbiased.co.uk and the 62 online white label versions of the search running on high profile partner consumer websites, helping consumers to find member IFAs’ details more easily and quickly than with a standard listing.
IFAs score highly on qualifications / designations
With the Retail Distribution Review (RDR) highlighting the importance of qualifications and designations within the financial advice market, Unbiased.co.uk’s statistics show that member IFAs are in a good position to meet this challenge.
The 17,290 Registered Individual (RI) member IFAs on Unbiased.co.uk’s database now hold between them over 23,500 qualifications / designations incremental to current benchmark Certificate in Financial Planning Of these, over 14,000 are equivalent to holding a component of a degree (broadly Qualifications and Curriculum Authority level 4/5). Put another way, 57% of the member IFA branch addresses on Unbiased.co.uk’s database now record at least one FSA registered individual holding at least one qualification / designation incremental to current benchmark associated with that branch address.
|
Qualifications / designations held by member IFAs incremental to current benchmark Cert FP (FPC 1/2/3) |
May-08 |
% of total |
|
General qualifications (competence assessed in more than one product area) |
5365 |
31% |
|
Mortgage qualifications |
4902 |
28% |
|
Tax qualifications |
2233 |
13% |
|
Pension qualifications |
5442 |
31% |
|
Long Term Care qualifications |
982 |
6% |
|
Saving and Investment qualifications |
3036 |
18% |
|
Equity Release |
1163 |
7% |
|
Corporate qualifications |
466 |
3% |
|
Total IFAP branch addresses |
8,698 |
100% |
|
Total IFAP Registered Individuals |
17290 |
100% |
Areas of specialism
Consumer demand for specialist advice remains high and the areas of specialism amongst member IFAs clearly reflect that trend. Investment and savings is still the most common area of specialism, currently held by 97% of Unbiased.co.uk’s member IFAs, followed by personal retirement planning (94%) and personal protection (87%).
|
Top 9 product areas listed by member IFAs on Unbiased.co.uk |
May-08 |
% of total |
|
Investment & Savings |
8400 |
97% |
|
Personal Retirement Planning |
8184 |
94% |
|
Personal Protection |
7525 |
87% |
|
ISAs / Unit Trusts |
6938 |
80% |
|
Mortgages |
5481 |
63% |
|
Group Pensions / Stakeholder |
4231 |
49% |
|
Taxation Planning |
4328 |
50% |
|
Personal Stakeholder Pensions |
3427 |
39% |
|
Offshore |
2428 |
28% |
Men versus women
While the IFA market remains a traditionally male dominated market, 13% of Unbiased.co.uk’s member IFA firms now employ a male as well as a female IFA. And a further 5% now run their firm entirely with female IFAs.
|
Gender of member IFA available |
May-08 |
% of total |
|
Male IFA Only |
7130 |
82% |
|
Female IFA Only |
416 |
5% |
|
Both Male & Female |
1152 |
13% |
David Elms, Chief Executive of Unbiased.co.uk comments, “Independent financial advice will continue to be in the spotlight for the remainder of 2008 and the Retail Distribution Review may bring some important changes for the market. However, a look at the state of the current IFA nation shows that the market is in good shape to face the challenges yet to come.
“It is encouraging to see that IFAs are embracing the online world, but there is still much more they can do. There are still one in three IFA firms that are currently without a website and we know that consumers are increasingly using the web to research their financial advice options. And a significant proportion of those IFAs with a website have yet to promote it cost effectively. The challenge for the IFA market over the next years is to further close the technology gap and utilise the online opportunities that are currently in the market.”
Consumers can obtain details of local IFAs by visiting www.unbiased.co.uk. To find an IFA who best matches their needs, consumers can tailor their search by selecting from a host of criteria including product specialisms, IFAs with additional qualifications, certain payment options, or they can state a preference to see a male or female IFA.
-ends-
1 All data is based on Unbiased.co.uk’s member database
2 ONS data, August 2007
|
Member IFA current E-offering |
May-08 |
% of total |
|
Email address |
8375 |
96% |
|
Web address |
5815 |
67% |
|
Online Marketing Package (OMP) subscribers |
3320 |
38% |
|
Top 9 product areas listed by member IFAs on Unbiased.co.uk |
May-08 |
% of total |
|
Investment & Savings |
8400 |
97% |
|
Personal Retirement Planning |
8184 |
94% |
|
Personal Protection |
7525 |
87% |
|
ISAs / Unit Trusts |
6938 |
80% |
|
Mortgages |
5481 |
63% |
|
Group Pensions / Stakeholder |
4231 |
49% |
|
Taxation Planning |
4328 |
50% |
|
Personal Stakeholder Pensions |
3427 |
39% |
|
Offshore |
2428 |
28% |
|
Gender of member IFA available |
May-08 |
% of total |
|
Male IFA Only |
7130 |
82% |
|
Female IFA Only |
416 |
5% |
|
Both Male & Female |
1152 |
13% |
|
Total Unbiased.co.uk branch addresses |
8698 |
100% |
|
Qualifications / designations held by member IFAs incremental to current benchmark Cert FP (FPC 1/2/3) |
May-08 |
% of total |
|
General qualifications |
5365 |
31% |
|
Mortgage qualifications |
4902 |
28% |
|
Tax qualifications |
2233 |
13% |
|
Pension qualifications |
5442 |
31% |
|
Long Term Care qualifications |
982 |
6% |
|
Saving and Investment qualifications |
3036 |
18% |
|
Equity Release |
1163 |
7% |
|
Corporate qualifications |
466 |
3% |
|
Total Unbiased.co.uk Registered Individuals |
17290 |
100% |
For further information please contact:
|
David Elms |
Anna Schirmer/ Anna Moulds |
|
Chief Executive |
Lansons Communications |
|
Unbiased.co.uk |
020 7294 3682 |
|
020 7833 3131 |
For expert comment or case studies from over 200 media-friendly IFAs, journalists should call Unbiased.co.uk’s Media Services hotline on
020 7294 3682 or search online at www.unbiased.co.uk/bluebook
1. Unbiased.co.uk
Unbiased.co.uk (IFA Promotion) is a not for profit organisation which promotes the benefits of Independent Financial Advice to UK consumers. Over the past 12 months, over 575,000 consumers have used Unbiased.co.uk’s confidential ‘Find an IFA search’ to find local member IFAs - 94% of these enquiries are now dealt with online.
Unbiased.co.uk, which is in its 19th year, creates over 6,000 pieces of positive coverage in the consumer media each year, highlighting the importance of seeking independent financial advice across online, broadcast and print media. This positive media generation influences consumers’ behaviour and increases their awareness of the benefits of seeing an IFA.
Unbiased.co.uk is now positioned as the online gateway between consumers researching their financial advice options and member IFAs. Over 60 white label versions of Unbiased.co.uk’s ‘Find an IFA’ service are now running on partner websites including those of media and portal money channels, product provider sponsors and other industry bodies.
When searching for a ‘Find an IFA’ on UK Google, around 80% of the returned links over the first five pages of search results now display either Unbiased.co.uk directly or a white label version of Unbiased.co.uk’s ‘Find an IFA’ service running on a partner website. To support this activity Unbiased.co.uk now regularly provides white label versions of its consumer guides, tools, microsites and podcasts to partner personal finance websites.
2. Unbiased.co.uk’s product provider sponsors
|
Abbey for Intermediaries |
Lincoln Financial Group |
|
Aberdeen Asset Management |
Lutine Assurance Services |
|
AEGON Scottish Equitable Plc |
MetLife |
|
Alliance Trust |
National Savings & Investments |
|
AXA Life |
New Star Investment Funds |
|
Bright Grey |
Norwich Union Life |
|
BPP |
Prudential |
|
Canada Life Ltd |
Scottish Life |
|
Cardif Pinnacle |
Scottish Life International |
|
The Children’s Mutual |
Scottish Widows Plc |
|
Clerical Medical Investment |
Skandia UK Group |
|
Defaqto |
Standard Life Assurance Company |
|
Friends Provident |
Tomorrow |
|
The Hartford |
Unum |
|
Invesco Perpetual |
Zurich Intermediary Group |
|
Legal & General |
Registered Office: IFA Promotion Ltd, 90 St. Vincent Street, Glasgow G2 5UB. Registered in Scotland: No. 114606
Post this article to:
del.icio.us
Digg
Newsvine
Reddit
Furl
MyYahoo!
Facebook
StumbleUpon
Read more press releases
