Demand for advice surges

DeVere has seen enquiries from new clients leap 24 per cent in April from the previous month – something that CEO Nigel Green pins on the “disruption and dislocation” of COVID-19.

“This has had a very real and very immediate impact on the finances of individuals, households and businesses around the world,” Mr Green said.

“Suddenly, unexpectedly, many have realised that they didn’t have sufficient money behind them, they didn’t have contingency plans.”

“This, as they know, could have consequences for the lifestyles and life opportunities of themselves and loved ones and, for those in business, for the long-term sustainability of their firm.”

Mr Green said deVere saw a similar effect after the 2008 financial crash despite confidence in financial institutions – particularly traditional banks – being at a record low.

“This most unusual situation has dramatically underscored that no one really knows what is around the corner,” Mr Green said.

“Now more than ever people are seeking to be as financially prepared as they can for any eventuality.”

COVID-19 is also reshaping how people want their advice delivered. A poll by deVere among existing and prospective clients showed that the majority – 52 per cent – still preferred face-to-face advice, while 42 per cent said they preferred video conferencing and 6 per cent preferred telephone.

“Given the circumstances and how much things have changed, I quite was surprised that the preferred option for the delivery of financial advice remains face-to-face,” Mr Green said.

“But video communication is only 10 per cent behind, which is quite something as it is a new platform for most people. The survey underscores that increasingly people want bespoke financial advice combined with innovative technology.”

The same poll showed that 72 per cent of client respondents felt the world had “changed permanently”, while 80 per cent said that new companies would emerge from the crisis and that companies that were successful in the past were not guaranteed to succeed again.

“2020 has been a year of change,” Mr Green said. “For an increasing number, this includes a change in the way we prioritise, with long-term financial security for ourselves and our loved ones ever-more important.”