Back to Blogs
Robot
Share this Article

Nudge Nudge, say no more!

Our last blog talked about the issue of engagement with respect to financial planning for the future and there is no doubt that this is a real problem, especially with younger generations.

But what if we could have a series of ‘nudges’ that subtly planted the idea in people’s minds just at the right time? What we would then need of course is data, and again that collection and analysis of data may mean that providers and others in the industry have to start looking for new and different skill sets to the ones that they are used to.

Probably the best example of what could constitute a ‘nudge’ is auto enrolment where nudges could then coincide with salary rises and encourage people to increase their contributions to save for the future.  The regulators however, would need to get behind the sentiment. It is well known that the FCA is very nervous about the potential of being held responsible for people opting into something they do not want.

However, we would argue that it is time for the regulators to accept that there is a huge difference between advice and actually helping people get to where they need to be.  Let’s not forget that many young people will look at their parents and perhaps see them have a couple of holidays a year, a nice house and a couple of cars. So again, perhaps we need to be looking for those creative skills to help paint a picture of what might happen if they don’t save now.

Technology can also help with the ‘nudging’ process.  In China for example, the WeChat app links up with bank accounts so that when a salary is paid in, it triggers an alert to ask if you want to transfer any into a savings account. This is just the beginning!

Our roundtable debated issues such as the financial advice gap and the difference between guidance and advice, the need for more engagement, consumer segmentation, the future of the IFA, and the tech generation. 

Download: The New Rules of Enagement

Our roundtable debated issues such as the financial advice gap and the difference between guidance and advice, the need for more engagement, consumer segmentation, the future of the IFA, and the tech generation.