The UK financial advice industry has revealed the greatest challenges it faces to profitability in 2021, in addition to the key challenges of increasing regulatory cost and the impact of a hardening professional indemnity insurance market.
The Personal Finance Society (PFS) surveyed 70 members in November 2020 and found almost half of them said the greatest operational concern for this year was fewer new clients knocking on their virtual doors.
Adapting to greater remote working was identified as the second biggest operational challenge financial advisers face in 2021, followed by updating IT processes.
Just one-in-five financial advisers said mounting fraud risk was the greatest challenge to the way they work this year.
‘Rethink old ways of working’
Keith Richards, chief executive of the PFS, said: “Financial advisers have had to adapt to the new normal created by measures to slow the spread of covid-19 at lightning speed.
“The pace of change shows no sign of slowing down in 2021 and will bring new business risks but also many opportunities to continue to rethink old ways of working, drive greater efficiencies and develop new methods of engaging with clients.
“The Personal Finance Society will continue to support members with the sharing of practitioner ‘good practice’ of ways to continue to safely deliver their vital services to the public in the year ahead.”
