The global management consultancy found that there was a significant increase in high earner’s use of direct channels to manage their financial situation and investments.
There was an increase from six to eight out of ten using channels such as the web, telephone or mobile devices regularly to keep track of their money, accounts and assets.
And the shift was not confined to those with top end salaries. The firm saw a 20% increase in those earning between £60,000 and £99,999 using direct channels. Nearly 70% earning less than £60,000 per annum were using direct channels to track finances post-crisis.
Neil Dennington, principal at A.T. Kearney, said: “It is clear that since the recession people are more careful about their money.
“However rather than seeking out financial advice to protect and grow their wealth people are tending to make much greater use of direct channels to keep track of their accounts, manage their savings and expenditure and monitor their portfolios.”
Dennington added there was an ever increasing amount of information freely available on the internet which removed the appeal of an IFA in some cases.
He said: “With the Retail Distribution Review set to transform the IFA industry , a legacy of mis-selling of certain financial products and a greater abundance of execution only platforms , it is no surprise we are seeing a move away from the traditional client – IFA relationship model.
“Astute IFAs have wisely recognised the client’s desire for more direct access to their portfolios as well as execution only platforms and are developing these online portals to cater for this.”
