Words About Things

Source: Imgspark

In a world where we are becoming increasingly reliant on technology to keep track of our finances, mobile banking and internet banking are set to become the norm by 2015. For myself, I love the freedom of being able to move money around, and check my bank balance at any time I like and the only thing I go into a bank for is to pay in or remove hard currency – if only there was a slot in my PC for that too!

According to “The new Digital Tipping Point” survey by PricewaterhouseCoopers, reported in Financemarkets, digital banking is set to be the norm by 2015 and that people will be willing to pay for it:-

The survey, of 3000 people in nine countries, suggests that customers are willing to pay up to £10 a month for online banking if they receive convenience and added-value services.

These could be services such as financial management tools, transaction notifications through Twitter, Facebook and other social networks, and loyalty cards.

Two thirds of UK respondents to the survey said they would pay around £4 a month for a loyalty card which would allow them to collect points that they could convert into cash.

The survey suggests that banks are lagging behind industries such as retail and travel in using technological developments to improve their services.

It also suggests that in the UK, the “optimal” price for digital banking would be £4.20.

It stands to reason that banks need to embrace the digital revolution and expand their services to bring themselves up to date.

In a statement, Stephen Whitehouse, a partner at PwC, said: “Banks are clearly missing a trick if they don’t start to invest in their digital offerings and only see digital as a way to reduce costs.

“The majority of banks still only provide basic mobile and Internet banking services.”

I find I can do just about everything I need to online, the only improvements I would like to see would be a wider variety of tools to aid in tracking outgoings etc, but I can use spreadsheets to do that, which isn’t really inconvenient. I can’t really see at the moment how £4 a month would be value for money for something that is presently part of most current account packages.

Source: Classic French Chateau

The Belfast Telegraph reports today that house prices will not repeat their 2007 high for some time to come due to the eurozone crisis.

House prices in Northern Ireland continued to fall in November, according to the latest RICS (Royal Institution of Chartered Surveyors) and Ulster Bank Housing Market Survey.

It said the eurozone crisis has impacted the local market and the peak prices witnessed in 2007 have “disappeared for a generation”.

“The seemingly endless flow of bad news from the eurozone will have inevitably impacted on the market,” RICS Northern Ireland spokesman Tom McClelland, said. “We are also now living in a different financial and job habitat.”

This has not stopped the market from ending the year stronger than expected however, with first time buyers and investors having a significant impact, particularly in the sub £120k bracket. The survey revealed that most surveyors (83%) expected house buying prices to stay the same over the next three months.

William Miscampbell, associate director from BTW Cairns, said November was a busy month.

“Traditionally we expect a drop-off in the number of sales towards the end of the year, however we found sales in November to be better than expected,” he said. “Where purchasers feel they are getting value for money they are happy to buy.”

Despite some changes to the financial advice market in recent years, there are still a number of options available for customers requiring advice on their finances. Here we look at some of the different places where advice can be obtained.

Insurance companies

This is certainly the sector of the UK financial advice industry that has undergone the biggest change in recent years. The days when all major insurers had a large sales force visiting customers in their homes, and a large network of local offices, have gone as the costs of operating like this in a tightly regulated industry took their toll. You may still find a few companies operating on this basis, but it is more likely that an insurer will sell products via telephone, or via a multi-tied or independent financial adviser.

Multi-tied or independent financial advisers

While the traditional home service model of the large insurer described above is practically extinct, there remain tens of thousands of financial advisers practising in the UK not employed by a product provider. A search of the internet or telephone directory is likely to reveal many advisers in your area. Advisers may be multi-tied, meaning they can advise on products from a selected panel of providers; or independent, and can therefore advise on products from all providers.

Financial advisers may be able to help you with insurance, savings, investment or retirement planning needs. They will be able to offer products from a wider range of providers than a bank, and may also offer more complex investment or pension products.

Until the end of 2012, you can choose how your adviser is remunerated. You can choose to pay by commission, where for any products you purchase, your adviser will receive a payment, the level of which is set by the provider. The commission will be deducted from your investment. Alternatively, you can choose to pay a fee, the amount of which can be agreed between you and your adviser.

Mortgage brokers

Home loans may be offered by some financial advisers, but there are also a large number of advisers who specialise in mortgage advice. Again these may be multi-tied or independent, and may be remunerated by commission or fees.

Accountants

Many accountancy practices also offer financial advisory services alongside their main offering.

Price comparison websites

These sites are not just for customers to view product prices. Increasingly, these websites offer financial advice, usually by telephone, and for certain products, they may insist you speak to an adviser before purchasing .

Money Advice Service

The Money Advice Service offers completely free assistance on financial matters. It was set up by the UK Government and its website can be found at www.moneyadviceservice.org.uk. Products cannot be purchased from this site, but there is a large amount of information to assist consumers in understanding financial products, budgeting, taxation and more.

Banks

Most high street banks still offer face-to-face financial advice, usually at a local branch. Advice is likely to be available regarding savings, investments, insurance, mortgages, credit cards and loans, but remember that advisers employed by banks are likely to be tied agents, and only able to advise on the products of their own bank. If you can afford it and have sufficient assets, private banks such as Adam Bank offer high end financial planning services.

Whether or not the bank still offers face-to-face advice, you can visit their website, where you will almost certainly find a number of helpful tips for managing your finances.

Retail Distribution Review (RDR)

From 2013 onwards, advisers selling investment or pension products must adhere to a new set of rules. Advisers will require more rigorous qualifications and will no longer be able to receive commission – instead the customer will have to pay a fee for the advice, although these fees will be able to be deducted from the investment in the same way commission is now.

Regulation

Almost all financial advisers require authorisation from the UK regulator, the Financial Services Authority (FSA). The FSA has a detailed rulebook for advisers to follow, and can discipline advisers who do not comply. Complaints about financial advice can be referred to the independent Financial Ombudsman Service if the complainant and the advisory firm cannot agree on how to resolve the matter.