Providers must overhaul their direct-to-consumer (D2C) offerings to serve consumers who ditch advice after the Retail Distribution Review (RDR), Deloitte has said.
Research from the firm has revealed 32% of consumers will handle their own financial planning after the change in legislation to avoid paying fees.
More than a quarter (27%) of the 2,000 people surveyed said they would go direct to the product provider after making their own product choices.
However, only 31% of the representative sample are confident they are capable of picking the right financial products.
Andrew Power, lead RDR partner at Deloitte, said: "This poses a big challenge for banks, insurers and fund managers and they will have to rethink how they deal directly with consumers.
"Over the next five years UK-based providers will have to develop and introduce direct-to-consumer business models.
"Large numbers of consumers are not confident they have enough knowledge to make the right financial decisions and so any D2C business model must be kept simple and low-cost.
"There is a risk that consumers who do their own research may not buy the right products - keeping longer term savings in cash, or making investments that are too risky, for example."
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