There is “definitely an opportunity” for banks to offer holistic guidance to those sitting in the advice gap, according to Clare Francis, savings and investments director, Barclays Smart Investor.
Speaking to FT Adviser, Francis discussed how the industry could do more to help people engage with their finances effectively and assist those who may not have access to financial advice.
She said: “On our side we run regular events, we produce educational content ranging from the basics to technical and complex research. And it’s not just about providing this but making people aware of it.
“We also have Mifid qualified financial guides who can talk through investment options and signpost customers to support materials. So the industry is trying and there is a recognition that more work needs to be done.”
Francis also discussed the advice guidance boundary proposals and how it could provide an opportunity to broaden the support banks can offer customers.
“By working with the government and the regulator we can explore other avenues to make it easier and simpler to provide more support to people.
"We have a new government and we’re yet to see what its priorities are going to be. But it's important to stimulate the discussion to see how we can work with it to help this issue and how we can get more people investing for their future,” she added.
Francis expected other banks would already be actively involved in this subject and looking at how they could move into serving those who are in the advice gap.
“We're very aware of the boundary between what we can and can't do, and what we can say to customers, because of the regulation.
"So, as part of the FCA’s consultation, we're looking at what more we can do based on the current rules versus the feedback we get in conversations we're having directly with customers about the additional help they would like that perhaps we can't do at the moment because of the regulation.
"It's about how we can broaden what constitutes guidance without stepping over the line into personalised advice? There is a role there for banks and we'd like to do more,” she explained.
Francis pointed out that if the regulatory framework were to be changed enabling banks to do things differently then Barclay’s would work to do that.
“This is critical, there is definitely a consumer need and it's aligned with consumer duty and helping people achieve better outcomes. What we want to try and do is help our customers get their money working as hard as possible as it can for them.
“One of the challenges we face in our wealth management service is that the minimum entry requirement is £500,000. This is a lot more than most people have, and this is where the advice guidance boundary work is so important.
