You’ve probably heard it before: “It’s not possible for advisers to serve those in the advice gap.” Sounds dramatic, doesn’t it? Like something straight out of a financial apocalypse movie. But let’s cut through the noise and get to the heart of the matter.
The financial advice industry is in turmoil, and not for the reasons you might think. The term “advice gap” is tossed around like a hot potato, but let’s call it what it really is: an intermediation gap. Yes, you heard me right. Advisers aren’t just advisers—they’re intermediaries. And intermediaries are for delegators. Wealthy folks can afford to throw a few thousand quid at someone to choose their financial products. The rest of us? Not so much.
Here’s the crux of the problem: The cost of servicing a financial advice client runs into thousands every year. With consumer duty regulations tightening the noose, advisers are scrambling to adapt, leaving little room to address the so-called advice gap. They’re focused on compliance and making sure they don’t get slapped with fines, which means the average Joe gets left in the dust.
Now, I know what you’re thinking. “What’s the solution, Steve? Cheaper intermediation? Faster, tech-driven advice?” Well, sort of. Technology can certainly reduce the time an intermediary spends with a client to a crisp 15 minutes, potentially lowering costs. But that’s just slapping a Band-Aid on a bullet wound.
The real answer lies in empowerment, not cheaper delegation. Here’s a revolutionary idea: Instead of being financial advisers, let’s become holistic financial planners. Our mission? Increase financial activation. Equip people with the education and technology they need to take control of their finances, make informed decisions, and be less dependent on intermediaries.
Think about it. If we can empower people to be their own financial planners, we eliminate the advice gap altogether. We transform it into a chasm of opportunity where everyone has the tools and knowledge to manage their finances effectively. No more outsourcing decisions to someone else. No more hefty fees.
Holistic financial planners sell plans, not products. We’re in the business of empowerment, not intermediation. Guided sales and cheaper delegation channels are mere stopgaps. True empowerment comes from education and technological tools that put people in the driver’s seat of their financial future.
In a world where financial planning can seem as exclusive as a private members’ club, we’re throwing the doors wide open. The future isn’t about finding cheaper ways to delegate; it’s about fostering independence and financial literacy. That’s how we bridge the advice gap—not by making the gap narrower, but by building a bridge so everyone can cross it.
So, let’s stop talking about the advice gap and start talking about empowerment. Because the future of financial planning isn’t about intermediaries. It’s about you. It’s about taking control. It’s about making financial independence accessible to everyone, not just the wealthy few.
Academy of Life Planning 