TABLE OF CONTENTS
THE LONG-TERM POTENTIAL FOR SELF-DIRECTION
- Introduction
- The current scope of self-direction
- European consumers are not overly keen to seek advice about finances
- Insufficent expertise is more important than time pressures in encouraging the use of advisers
- Advisers are heavily relied upon by 30% in choosing a savings and investment product
- Different products are subject to different levels of self-directed behaviour
- Drivers and barriers behind self-direction
- Customer considerations and perceptions play a key role in the short-term
- The impact of the prevailing investment environment on self-directed behavior is complex in
nature
- Investment firms fuelled mistrust of their own advice
- A series of longer-term factors are also set to boost self-direction
- Supply side considerations
DESIGNING A SOLUTION FOR THE SELF-DIRECTED
- Emerging customer propositions
- There are at least four service offerings that attract self-directed investors
- Online banking and direct savings
- Online banking and direct savings are a proven success story
- Online banks are potentially in a strong position, but must go further
- Online stockbroking
- Online stockbroking operations are experiencing a come-back...
- ...and have incorporated a wide range of improvements to benefir clients
- Fund supermarkets
- Many fund supermarkets have followed a similar path to stockbrokers...
- ...but also have the option to turn more towards financial adviser channels
- The fund supermarket concept raises some important considerations
- Wrap account platforms
- Wrap accounts allow investors to see all their investments in one place
- The UK is tipped to be the next big market for wrap accounts
- But wrap accounts are not currently been geared towards the self-directed
- Strategic considerations
- A step change for providers
- Key Failings to be addressed
- Positioning and objectives
- Components of the ultimate solution
- (1) Online account management platform with a full complement of valuation, reporting and
informational tools.
- (2) Access to a full range of asset classes and providers through a well-designed series of
product and service vehicles.
- (3) Offline and online customer support.
- (4) Access to relevant research, practical information to support decision making including and,
where needed, advice.
CONCLUSION
APPENDIX
- Data tables
- Further reading
- Datamonitor Savings & Investments SPP Reports
- Asset Management and Funds
- Offshore Savings and Investments
- Retail Savings and Investments
- Related Global Wealth Service SPP Reports
- Datamonitor Financial Services Consulting
- SPP writing team
- List of Tables
- Table 1: Statement: I prefer to use a broker/advisor to help manage my finances
- Table 2: Statement: I would consider using a broker/advisor as I do not have enough time to
manage my finances myself
- Table 3: Statements: I would consider using a broker/advisor as I do not have enough knowledge
to manage my finances myself
- Table 4: Which source of information would you most rely on if you were considering which
savings or investment policy to open?
- Table 5: Europe: retail savings and investments balances, segmented by broad product line, 2003
- Table 6: European Internet banking customer numbers and forecasts, 2000-2006f
- List of Figures
- Figure 1: European consumers have no strong desire to seek the help of an adviser to help manage
their finances
- Figure 2: A quarter of European consumers agree that time pressures make advice a logical option
in managing their finances
- Figure 3: A third of Europeans would consider using an adviser to help manager their finances
due to lack of knowledge
- Figure 4: Advisers are far from the only trusted source of information in researching a savings
and investment decision
- Figure 5: The propensity for retail investors to act in a self-directed manner varies
substantially by asset class
- Figure 6: The advice wave: market turbulence has generated a significant flight to safety among
investors
- Figure 7: Forces for and against increased self-direction in savings and investments
- Figure 8: Internet Banking has grown substantially across Europe
- Figure 9: The key features of several product and technological developments needs to be
combined and enhanced
- Figure 10: Product and service vehicles that from part of the ultimate self-directed customer
proposition
- Figure 11: A comprehensive self-directed solution: one of four long-term strategic options in
the savings and investment sector
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