“Environmental, social and corporate governance will continue to be a hot topic. Societal awareness of this is increasing exponentially and it will play a greater part in the demands faced by the industry, which includes the rise of green mortgage solutions.”
Lessons of 2021
Discussing the past year, Golunska said advice firms, as well as the wider financial services industry demonstrated resilience as they adapted and adjusted through 2020 and 2021.
“To their immense credit, advisory firms have embedded and embraced new ways of working, whilst continuing to look after their clients, their people and their businesses,” she said.
Markets have rebounded since spring 2020, providing investors with growth in most sectors, while the mortgage market has been buoyant, with many people opting to move or revamp their existing home in lieu of holidays or travel and taking advantage of the stamp duty relaxation, she explained.
“As Covid cases climbed so too did protection and insurance sales, with the pandemic serving as a reminder as to just how valuable these policies can be, along with the features and benefits they offer, such as health and wellbeing support,” she said.
“Similarly, the pandemic has seen people reassess their lifestyle choices and goals, and what’s truly important to them.”
Over the past year, Golunska said this change in outlook and expectations would have a long-term impact on how consumers engage with their finances and the advice community.
She explained that one of the biggest instances of this has been the increased awareness of ESG, stating that SBG has seen “widespread changes” to advice processes and product selection in many businesses throughout 2021, as firms respond to the increasing consumer demand for advice and solutions that consider ESG issues.
She added: “Not being customer-centric is one of the biggest threats to any business. In the relationship-driven world of advice, being engaged with its clients’ wants and requirements is paramount.
“This means that finding and retaining the right employees to provide these value-added services has never been more challenging for advice firms – an issue that features as one of the greatest concerns in our conversations with business owners.”
Golunska explained that as a result, employee engagement and wellbeing will continue to be a key focus for firms, as well as the need for businesses to be truly inclusive and help to nurture a more diverse financial services community.
“When you add in a range of additional concerns such as FSCS levy increases, vulnerable customers, financial advice consolidation and the move to hybrid working models then you have another significant year of change for the advice community to manage,” she added.
“The financial services industry has once again stepped-up to provide clients with the comfort and confidence that financial advice provides – a truly value-adding service that is more important than ever.”
