The savings gap in the UK is significant. People are not putting enough aside to see them securely through the latter part of their lives and need to be encouraged to take financial planning more seriously.
Wealth, Life, and Pension providers can play a big role in helping educate customers about their need to save for later life and engage them digitally with products and services they’ll need to help ensure a happy and prosperous future.
Customers, however, have their own expectations. In a digital economy, the population has grown used to providers of non-financial services meeting their needs in a certain way – and if pension providers can’t match or exceed that expectation, then wholesale buy-in could be challenging.
Barriers to purchase
Buying financial products is necessary, but it isn’t something the consumer is desperate to do. So if a barrier is placed in their way, the consumer is likely to be put off their purchase.
For this reason, it’s vital that financial products of the future are as simple and convenient to obtain as other digital services such as current accounts or insurance for example. That’s how financial products need to be positioned, as one in a range of digital service with which the consumer engages. Why? Because those are the terms on which they will be judged.
If it isn’t as easy and transparent as online shopping or banking, then high levels of consumer engagement could be difficult to achieve.
Customers often find the world of financial products a confusing minefield. In the future, one of the key expectations from the consumer will be to have a trusted voice they can rely on to cut through all the noise and tell them what’s in their best interest – simply.
The customer of the future doesn’t want to be bogged down by the tyranny of choice, they want straightforward services tailored to their needs by experts they can trust, that are easily obtained or accessed.
The trick for the providers is finding a way to make that all work, and then to offer it digitally.