The term “advice gap” has been widely used in financial services to describe the absence of accessible financial advice for certain segments of the population. However, two persistent myths about this so-called “gap” need to be addressed to ensure we’re truly solving the right problems.
Myth 1: There Is a Genuine Advice Gap
The first myth is that there is a genuine need for traditional financial advice among people with little or no investable assets. But let’s look closer. Financial advisers, as we know them, are often intermediaries for selling long-term savings and investment products—tools designed to manage wealth that’s already been created. For those living paycheck to paycheck or struggling to meet basic needs, advice on investment products isn’t relevant or helpful. What they need is support to create wealth in the first place.
For this group, the priority isn’t about saving for retirement decades down the line. It’s about surviving today and achieving short-term goals to build a foundation of safety and security. Before focusing on long-term savings, individuals need tools and resources that address pressing financial challenges: increasing income, managing debt, and budgeting effectively.
The so-called advice gap doesn’t exist in the way the financial industry portrays it. What these individuals need is empowerment through financial education and wellbeing platforms, not advisers who primarily act as product salespeople.
Myth 2: There Are No Alternatives
The second myth is that there aren’t already solutions in place to bridge this gap. In reality, numerous innovative platforms and initiatives are emerging to fill this space—and they’re doing so in ways that prioritise empowerment over delegation. Instead of “targeted support” mechanisms designed to funnel people into buying financial products, these platforms focus on activation and education.
For instance, platforms like Money Talks aim to provide financial wellbeing support through education, coaching, and access to resources. Their approach highlights what’s missing from the traditional model:
- Accessibility: Platforms like these don’t require high levels of wealth to participate. Many offer services for free or as part of employee benefits, making them accessible to those often overlooked by advisers.
- Education: Instead of selling products, they educate users about personal finance fundamentals. This includes managing short-term priorities like budgeting, reducing debt, and increasing financial literacy.
- Engagement: By using modern communication tools like WhatsApp, these platforms meet people where they are. Users can ask questions, access content, and receive updates in an approachable and non-intimidating way.
A New Way Forward
The traditional financial services industry has long been built on a model of delegating responsibility to advisers. But the real solution lies in empowering individuals to take control of their own finances. Financial wellbeing platforms, like those pioneered by Scott Foley and others, offer a glimpse of this future. They focus on equipping people with the knowledge and tools they need to make informed decisions about their finances.
These platforms are not a silver bullet—and they’ll be the first to admit it. But they are an important step in addressing the real needs of those who have been left behind by the traditional advice model.
Why This Matters
As the advice gap grows wider, so too does the urgency to find effective solutions. But solutions that focus solely on increasing access to traditional advisers miss the point. Instead, we need to reimagine financial support systems—ones that prioritise education, short-term stability, and empowerment over product sales.
By challenging these myths, we can begin to shift the narrative. Financial wellbeing is not about fitting everyone into a one-size-fits-all system. It’s about meeting people where they are, providing the tools they need, and empowering them to build a secure financial future. And that’s a solution worth pursuing.
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