Leading banking experts are predicting a new direction for the Independent Financial Advisor (IFA) industry as the larger banks increasingly move towards offering advice in-house.
Santander UK have already thrown their hat into the ring confirming that from March this year, they will be offering an in-branch service.
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In the same vein, RBS (Royal Bank of Scotland) is also planning to revamp its retail investment information and advice service targeted at the mass market at some point over the coming year.
New Industry Model
Several industry big hitters have proffered the opinion that the actions of these two banks could well be the start of a whole new financial advice model, and it seems highly likely that the other high street banks will soon follow suit. Many of the new in-house Independent Financial Advisors will use the very latest available software for IFAs such as that available from the Intelliflo website.
Impact of Stricter Regulations
Many of those in the know regard this new set-up as the inevitable result of the implementation of stricter banking regulations that have had the effect of discouraging newcomers from dipping their toes in the advice marketplace. Therefore, banks are looking to provide this advice themselves and providing in-house space to their customers to meet an advisor and talk through their options.
This could have a knock-on effect. For example, universities will start to offer courses that will enable finance students to gain a level 4 qualification, meaning that they will be able to start work in this sector upon graduation.
More advice about the educational qualifications required for a career as an Independent financial Advisor can be found at http://www.ifa.org.uk/smes-and-smps/corporate-alliances/education-partners/.
Dynamic Environment
Offering independent banking advice in-house opens up more opportunities than simply advising on the bank’s own products, which should mean a more dynamic environment for financial advisors.
New Technology
New technology will be required to keep pace with this shift and should also help banks to stay within the parameters of the strict new regulations.
It goes without saying that financial planning services and financial services in general are absolutely vital to growing the economy in the UK. As the average age of the UK’s workforce continues edging up, the need for young, well-trained IFAs becomes increasingly urgent.