A lack of digital and ESG offerings is preventing some Financial Planners from winning new business from the families of existing clients, according to a new report.

Financial Planners could be losing over 200,000 potential clients a year.

Nearly half (48%) of those whose families had existing relationships with a wealth adviser or Financial Planner did not seek support from the adviser after receiving an inheritance of over £250,000 in the past five years, according to the report from behavioural finance firm Oxford Risk.

Roughly 8% of those who received an inheritance of over £250,000 did not take any advice.

Almost half (46%) of those whose families have an existing adviser relationship do not plan to seek their support when they receive and expected inheritance in the next five years.

Poor ESG services was one of the largest areas which dissuaded people from turning to their family’s Financial Planner, with 29% stating this as off-putting.

Around a quarter (25%) said the adviser was too focused on older clients, whilst 17% were put off by the adviser’s website or by them not offering a digital service.

Greg B Davies, head of behavioural finance at Oxford Risk said: “Wealth advisers clearly cannot win every client just because a family already has a business relationship, but it is striking that so many people go elsewhere for advice or do not get advice at all.

“Not offering an ESG service, or not keeping up to date with technology advances, are the major reasons why potential clients are opting to go elsewhere or not seek any advice at all, and advisers should consider addressing these issues.” 

Among those surveyed who said they not plan to seek an advice on inheriting, 44% said they do not need advice whilst 39% said digital services mean they can do it themselves.

A fifth (22%) of those surveyed did not believe financial advisers add any value.

Consumer Intelligence surveyed 1,022 UK adults on behalf of Oxford Finance between 28 and 30 January.