Despite recent progress, our industry remains skewed towards an older demographic, with only 6% of UK advisers aged under 30 — the cohort known as Generation Z (‘Gen Z’).
With recent research revealing that almost a third of advisers expect to retire in the next two to five years, this means that there is not only a lack of young talent coming through but also a limited timeframe to imprint the skills, knowledge and passion of existing, highly experienced advisers onto the next generation.
Our industry offers the opportunity to change lives
With Gen Z struggling with student debt and rising costs, along with the increasing challenge of affording their own home, are we surprised that they are more likely to aspire to be YouTubers or software developers than to become mortgage advisers or paraplanners?
With research from the Personal Investment Management & Financial Advice Association finding that nearly half of those aged under 45 would consider making, or have made, a financial decision based on the recommendation of a ‘finfluencer’, the question remains: how do we attract new talent?
Advisers can play a significant role in helping to improve sustainability
I firmly believe that our industry has much to offer the next generation, with careers meeting their wants, needs and social and environmental values, but only if we can better explain why financial advice is so important to society — and how it matches what Gen Z are passionate about.
Society and the environment
Where we choose to live has an important social and environmental impact, and access to good-quality housing is a fundamental pillar of an equitable society.
Taking advice enables more people to benefit from homeownership than if left to their own devices. For Gen Z-ers passionate about creating a fairer society, advice is the perfect calling, helping people to make better decisions on complex financial issues that improve their life and prospects.
The appeal of working in financial advice and supporting the creation of a fairer society is a substantial draw
On the environmental front, housing-related activity equates to almost a fifth of UK CO2 emissions. While green mortgages may be a tiny proportion of the current market, this excludes many Gen Z would-be borrowers, for whom green credentials may be a higher purchasing influence.
Advisers can play a significant role in helping to improve sustainability by advising on energy-efficient homes, providing access to secured funding for retrofitting and improving the quality of existing housing stock, and signposting lenders with strong ESG credentials and funding lines for customers who regard this as an important factor.
Equity, diversity and inclusion
Although our industry has made progress in promoting equity, diversity and inclusion, more needs to be done. Businesses that are open, supportive and accessible to people from all walks of life attract the best talent to grow their business, and are also more reflective of, and appealing to, a wider customer demographic.
Are we surprised that Gen Z are more likely to aspire to be YouTubers or software developers than to become mortgage advisers or paraplanners?
At its core, financial advice is personal, which is perhaps why most of those seeking a mortgage do so via an intermediary, who can provide the human touch that finfluencers cannot. The appeal of working in financial advice and supporting the creation of a fairer society is therefore a substantial draw.
Digital sophistication
When it comes to digitisation, we aren’t an industry on the cutting edge of technological advancement but one looking for ideas and creativity. Our offer to the next generation of advice professionals is the enormous opportunity to make a real difference.
The advice industry — mortgages in particular — lags in the evolution of the customer experience compared to areas such as banking and investments, which have embraced digitisation and innovation more freely.
Our business models remain largely unchanged, but Gen Z can play an important role in driving things forward, helping to freshen up industry mindsets and embracing the spectrum of technology and tools available to improve customers’ experience.
There is a limited timeframe to imprint the skills, knowledge and passion of existing, highly experienced advisers onto the next generation
Ultimately, selling a career in advice is like getting a complex case through underwriting or compliance. It’s about telling the story, and our story is the opportunity that our industry offers to change lives, improve prospects and build a fairer society.
That’s what gets me out of bed every morning, and will, I’m sure, continue to inspire those who follow us.
Alex Beavis, group director – mortgages and protection, Sesame Bankhall Group
This article featured in the May 2024 edition of Mortgage Strategy.
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