Fee-free financial services still the norm for Singapore
17 décembre 2003
SINGAPORE — GLOBAL research firm Synovate today released survey results which show that the majority of consumers in Singapore still reject the concept of paying for financial advice.
Based on a survey of 1,000 consumers conducted in October this year, 69 per cent rejected the idea, meaning that for most financial professionals commission-based remuneration based on the sale of funds or other financial products will remain standard.
Piers Lee, General Manager of Synovate's Commerce, Banking & Investment (CBI) team said the financial industry still had a way to go in convincing users that paying for advice may see a higher quality advice in the long-term, as advisers become independent of commission structures.
"The issue is not so much that consumers don't see value in financial advice but simply they don't have to pay for it at the moment. It's not an issue of delivery either - we still pay lawyers who lose us cases and still pay doctors who don't make us well. There's no reason why we can't pay financial advisors who don't make us money!" he said.
However, for banks and insurance companies alike, the market for financial planning in Singapore could see some changes in the future. Although only 13 per cent of consumers stated willingness to pay (with another 11 per cent cautiously agreeing), the younger generation appear more open to the concept of paying for financial advice.
Indeed, 25 per cent of 18-24 year olds said �yes� they would be willing with only 52 per cent rejecting it. This compares to 69 per cent of all consumers as shown on the below chart. Those from non-Chinese ethnic origins were also less likely to reject paying for advice.
"The younger generation is probably more open to paying because they are not conditioned by past experience of financial planning and product acquisition. However, will this new generation of private investors keep an open mind?
"We have also seen a rise in ownership of Unit Trusts from 14% in 2001 to 20% today. Clearly investors in Singapore are increasing turning to professionals to manage their investments and I am sure over time we will see more openness to fee-based remuneration for financial planners,� Mr Lee said.
Contact(s) for this press release
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Henrietta Sung
Marketing Manager |
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Telephone: +1 416 964 6262 ext. 165 |
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Piers Lee
General Manager, Commerce Banking and Investment |
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Telephone: +65 6430 6500 |
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Synovate, the market research arm of Aegis Group plc, generates consumer insights that drive competitive marketing solutions. The network provides clients with cohesive global support and a comprehensive suite of research solutions. Synovate employs over 6,400 staff across 62 countries.
For more information on Synovate visit www.synovate.com.