Just the other day, someone commented on social media,
“Well, financial planning certainly hasn’t seen a great take-up thus far, has it!” – Financial advice tech consultant.
This sparked a thought. From a marketing perspective, businesses often navigate between two different types of strategies: Red Ocean and Blue Ocean. These terms paint a vivid picture of how companies approach competition and growth in the marketplace.
- Red Ocean Strategy refers to a highly competitive space where many businesses are already operating. In this “red ocean,” companies battle over existing demand, which can lead to intense rivalry. The focus is often on outpacing competitors—whether through price, features, or availability. But in such a crowded market, companies can find themselves in a zero-sum game, where growth and survival become the priorities, often at the expense of innovation. Prices are driven down, and profitability can suffer as businesses struggle to stand out.
- Blue Ocean Strategy, on the other hand, represents the opposite. In a “blue ocean,” the market is largely uncontested. Companies create and capture new demand by offering innovative products or services, unlocking potential that hasn’t yet been tapped. Instead of competing within set boundaries, they create entirely new markets, making competition irrelevant. The focus here is on differentiation and value innovation, allowing businesses to grow freely without the constant pressure to outperform others.
So, what’s the key difference? Red oceans are saturated and highly competitive, while blue oceans carve out unique spaces, with minimal competition and plenty of room for growth and profitability.
In the context of financial services, many firms in a red ocean are driven by where they believe customers are willing to spend, often without truly addressing the deeper needs of those customers. The focus is typically on maximising market share, sometimes prioritising short-term gains over long-term value. This can lead to an oversaturation of similar offerings, where businesses struggle to differentiate themselves. It becomes harder to stand out, and customer needs might get overlooked in the process.
On the other hand, in a blue ocean approach, businesses can avoid this fierce competition by focusing on innovation, addressing unmet needs, and providing real value.
The Financial Advice Industry as an Example of Red Ocean Strategy
Let’s take a closer look at the financial advice industry and how it embodies a Red Ocean Strategy.
As of 2023, the Financial Conduct Authority (FCA) reported that there were 28,227 financial advisers working in UK advice firms. This marks a slight decline from the previous year’s 28,839 advisers. If we include those working in related sectors—like mortgage brokers and investment managers—the total number climbs to around 37,281. While the numbers have shown modest growth in recent years, we’re also seeing consolidation in the sector. More advisers are now working in larger firms, and the number of smaller advice firms has been shrinking, with a 7% reduction since 2022.
This paints a clear picture: the financial advice industry is highly competitive, with fewer firms vying for a share of the same pool of clients. It’s very much a crowded market—a typical red ocean—where firms compete over existing demand, rather than creating new opportunities.
Now, let’s consider the size of the potential market. In 2023, the UK had around 28.4 million households, which is a 6% increase over the past decade. Most of these households (about two-thirds) are one-family homes, while the rest are individuals living alone. The average household size remains steady at 2.36 people per household.
Interestingly, only 8% of households in the UK are currently paying for financial advice. That’s an average of about 80 households per financial adviser. While these figures may seem promising for advisers, it means that a staggering 92% of households are not paying for financial advice. And here’s the important part—those households aren’t just ignoring their finances. They are managing in other ways, without the guidance of a professional adviser.
This raises an important question: how can the industry better serve the vast majority who are not engaging with financial advisers? There is an opportunity to step out of the overcrowded red ocean and redefine the approach—focusing on what people truly need and want from financial guidance.
Is the Financial Planning Profession a Blue Ocean Strategy?
You may be wondering what sets financial planning apart from financial advice. The key difference lies in the approach.
As the Chartered Institute for Securities & Investment (CISI) puts it:
“A financial planner focuses on you – your goals, your aspirations, your concerns. They look at the bigger picture and deliver a holistic strategy with a financial plan. A financial adviser focuses solely on a single aspect – which may be your money and your investments.”
This emphasis on the whole person is what makes financial planning so distinct. Financial planners aren’t just concerned with managing your money; they’re focused on helping you achieve your life goals, whatever they may be.
As of 2024, there are approximately 957 Certified Financial Planner (CFP) professionals and 3,513 Chartered Financial Planners in the UK. This is a growing field, but it remains a relatively small community compared to financial advisers. Interestingly, around 40% of financial advisers use the title “financial planner,” although many do not provide the comprehensive services that true financial planning entails.
At the Academy of Life Planning (AoLP), we are proud to represent a 500+ strong community of financial planners, most of whom are not also financial advisers. In fact, 75% of our members are highly qualified professionals at QC Level 6 and 7—predominantly Chartered or Certified Financial Planners. These individuals are committed to a holistic approach that puts the client’s life at the centre of the planning process.
So, where do people turn when they feel ignored by their financial adviser—when their calls aren’t returned because there are no new assets to manage? Sometimes, surprisingly, the answer is their accountant! Trusted professionals like accountants can often step in when financial advisers fall short.
The ICAEW Personal Financial Planning Community offers an excellent platform for professionals interested in areas such as lifetime cash-flow modelling, investments, pensions, and estate planning. As of 2024, this community has grown to 35,000 members in the UK, providing resources and support for both ICAEW members and non-members alike.
The Financial Planning Advantage
It’s important to understand that financial advice is specific and must be tailored to each individual client, which is why it can only be given one-to-one. However, financial planning is a broader, more flexible form of advice. It can be shared with groups—whether through workshops, seminars, or even books (like Be Your Own Financial Adviser 2024 edition by Jonquil Lowe), or delivered via subscription-based channels like VOD and podcasts.
One of the biggest differences between financial advisers and planners is how they are paid. Financial advisers are usually compensated based on the assets they manage, which is why they often target clients with significant wealth—those with investable assets typically over £200,000. This leaves a large portion of the population underserved. Many households simply don’t have enough assets to qualify for this type of advice and are left to figure things out on their own.
On the other hand, financial planners, compensated on a project-based or hourly fee, offer a much more scalable model. With planners, clients have multiple options:
- Done-for-you
- Done-with-you
- Done-by-you
These options make it possible for planners to reach a far larger audience—particularly the 920 underserved households per adviser who would otherwise miss out on financial guidance. This model empowers individuals to take control of their own financial futures, with the support of a professional who understands their personal goals and challenges.
What Mistakes Are FinTech Consultants Making in 2024?
In 2024, many fintech consultants are still focused on the financial adviser community, using a Red Ocean Strategy. Why? Because that’s where the money is—assets under management. Financial advisers, acting as agents, distributors, and intermediaries for the financial industry, control the flow of these assets. The problem with this approach is that it misses the mark when it comes to the real needs of most people.
The Blue Ocean of financial planning remains largely underserved by tech consultants. Why? Because financial planners typically don’t manage assets in the same way as advisers do. This has led to a perception that their business models are “hollow” or “empty,” viewed as not commercially viable simply because they aren’t based on managing client assets. As a result, fintech consultants have focused on distributing more financial products to the underserved 92% of the population—an attempt to apply a Red Ocean Strategy (selling products) to a Blue Ocean need (financial planning).
This focus on “filling the advice gap” by pushing products, rather than offering genuine financial planning, is where the mistake lies.
Many financial advisers who also offer financial planning, as well as product providers, have experimented with robo-advisers to scale their services and reduce costs. At the same time, the FCA has explored ways to loosen regulatory barriers, hoping to make it easier to sell to the underserved market. But here’s the thing: the underserved don’t need more long-term savings and investment products. What they need is real advice that addresses their specific financial challenges.
According to the Office for National Statistics (ONS), 92% of the population have less than £100,000 in investable assets—well below the threshold for most financial advice services. So, should we really be lowering our standards just to sell them more investment products? Is it right to encourage people with limited financial resources to buy products they may not fully understand, especially when there’s little protection against mis-selling?
The answer is no. Instead, we should focus on meeting the real needs of the 92%. This means offering financial planning that helps with things like:
- Human capital development (building skills and opportunities)
- Financial activation (getting financially organised and proactive)
- Managing the cost of living crisis
- Paying down debt
- Building cash savings habits
- Protecting livelihoods
“The overwhelming majority of retail investors are best served by readily understood, well-diversified and low-cost investments, which are already available from a range of providers, but many retail investors don’t choose these.”
Even for those with enough assets to invest, the advice should be simple and cost-effective. As Christopher Woolard, former interim CEO of the FCA, said in his Consumer Duty consultation, the majority of retail investors would be best served by well-diversified, low-cost investments that are already available. Yet, many people are still being sold complex products they don’t really need or understand.
At the end of the day, it’s not about selling more products; it’s about empowering people to make informed decisions and take control of their financial futures.
Embrace the Red Pill: Unlocking Growth with a Blue Ocean Strategy
In business, we often face a similar choice to the one Morpheus presents in The Matrix. You can take the blue pill—remain in the Red Ocean, competing in crowded markets, battling over the same customers, and chasing short-term gains. Or, you can take the red pill—embrace the Blue Ocean Strategy, unlocking new opportunities, creating uncontested market space, and focusing on true innovation and value.
“This is your last chance. After this, there is no turning back. You take the blue pill—the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill—you stay in Wonderland, and I show you how deep the rabbit-hole goes.”
At the Academy of Life Planning, we believe in taking the red pill—empowering you to explore untapped potential, delivering financial planning that’s accessible to all, and guiding you on a path to long-term success.
What the 92% need isn’t more non-advised sales strategies that follow a Red Ocean mindset. They need non-sales advice that focuses on empowerment, which is exactly what a Blue Ocean Strategy delivers. And the good news? This kind of advice is already available at prices that everyone can afford. It’s called financial planning.
Instead of pouring resources into Red Ocean tech that scales solutions for the 8%—like planner apps with fancy end-user interfaces—shouldn’t we be focusing on delivering Blue Ocean solutions that empower the 92%? Solutions like My Finance Future and HapNav are examples of tools designed to help people take charge of their financial lives. These are the kinds of apps that could make a real difference.
So, why aren’t we focusing more on empowering the underserved? The fact is, 90% of people, 90% of the time, can manage their own finances—as long as they have the right support. It’s only during times of stress or major life changes that they need one-on-one guidance from a wealth professional. And that professional doesn’t need to be a financial adviser focused on products—it can be a financial planner, providing holistic advice through accessible channels like workplace programmes or community-based initiatives.
At the Academy of Life Planning, we are proud to align ourselves with the M-Power Movement, demonstrating our unwavering commitment to financial empowerment. This partnership enhances our mission to provide comprehensive planning services, education, and tools that enable individuals to take control of their financial futures. We believe that financial knowledge should be accessible to everyone, breaking down the traditional barriers of financial services that often leave people feeling excluded.
Together, we are redefining what excellence and trust look like in the financial planning industry. This is more than just advice—it’s a transformative journey towards a fairer, more empowered society.
Join us in making financial empowerment a reality for all.
My response to the financial advice tech consultant:
“That’s a fair observation, and it’s true that financial planning hasn’t yet reached the level of take-up we might hope for. But the landscape is changing, and more people are starting to see the benefits of holistic financial planning beyond just managing investments.
The reason financial planning hasn’t gained more widespread traction could be down to a common misconception—that it’s only for the wealthy or those with large amounts of investable assets. In reality, financial planning is for everyone. It’s about looking at the bigger picture: your goals, your lifestyle, and your aspirations. It’s not just about money; it’s about making sure every part of your life is aligned with your financial decisions.
As we move forward, more people are waking up to the idea that financial planning offers personal empowerment—helping them take control of their financial futures. The rise of accessible tools and services like My Finance Future and HapNav is making financial planning more affordable and easier to access than ever before. It’s no longer just about delegating to a financial adviser; it’s about having options that suit your unique needs, whether you want a hands-on approach or prefer working with a professional on a one-to-one basis during key life changes.
At the Academy of Life Planning, we’re committed to breaking down barriers and showing people that financial planning is within reach for all. We believe in a fairer society where financial knowledge is accessible to everyone, not just the few. And while the take-up may not have been significant in the past, we’re confident that this is a transformative journey many more will join as they realise the full potential of holistic financial planning.”
For more information on holistic financial planning and our range of courses, we invite you to visit our website. You’ll find everything you need to start your journey towards a more comprehensive and empowering financial future. Let us help you take the next step in aligning your finances with your life goals.
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