7 firms join forces to push benefits of digital advice

The Digital Advice Group (DAG) will promote the digital alternatives to traditional face-to-face advice models.

The group is comprised of abrdn, Barclays, Hub (Destination Retirement), OpenMoney, Netwealth, Vanguard and Wealth Wizards.

According to the group, 59% of non-advised investors say they would consider taking financial advice in the future but only 23% of investors currently use a financial adviser.

The group said nearly a third (30%) of non-advised investors reported not being able to afford a financial adviser as a key barrier to taking advice.

Over half of investors surveyed by consumer research firm Boring Money said they would prefer a digital advice solution due to lower perceived costs and greater convenience.

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The DAG said that by raising awareness of digital advice and the range of services it makes available, it can help to close the advice gap and support more individuals and their families to benefit from regulated financial advice.

Holly Mackay, Boring Money CEO and DAG chair, said: “We set up Boring Money to help consumers to make better choices. But sometimes people’s questions are not about products, but advice. Most consumers are unaware that their advice options have expanded, opening up financial advice to younger people, to people who want to pay less, or to people who want a more convenient, digital solution which can be done largely from the comfort of their own homes.

“Awareness remains very low – it’s our mission to spread the word and to support confident choices.”

Boring Money surveyed 4,826 UK adults with at least £10,000 they are willing to invest earlier this year.

One of the founding firms, OpenMoney, has also announced today a partnership with the Co-op Credit Union to bring digital financial advice to Co-op members. The partnership will see members able to use the OpenMoney app with a range of budgeting tools along with access to investment and mortgage advice. 

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