FIN. TeamThe recent research conducted by the Association of British Insurers (ABI) in collaboration with Thinks Insight and Strategy’s Behavioural Team underscores the substantial impact of personalised guidance on improving financial decision-making. The experiment revealed that a remarkable 76% of participants made better financial choices when receiving guidance tailored to their individual circumstances, in stark contrast to the mere 14% benefiting from generic guidance based on existing regulations.
This personalised approach, presenting clear and relevant options, proved instrumental in aiding consumers to navigate complex decisions regarding savings, investments, and pensions. Furthermore, the study highlighted that customers demonstrated a higher willingness to pay for personalised guidance that aligns with their specific needs. Dr. Yvonne Braun, Director of Long-Term savings at ABI, emphasised the necessity of enabling such tailored guidance via proposed targeted support regimes, echoing the sentiments shared by Sir Steve Webb, Partner at LCP and former pensions minister.
These findings advocate for financial service providers to offer personalised guidance, fostering a productive dialogue between industry and regulators to enhance customer outcomes in compliance with the FCA Consumer Duty.
