Improve financial advice without additional burdens

Most people ask their friends and family or go to the web for money advice a new online poll for the British Bankers’ Association reveals.

Banks and post offices come next with the weekend media providing more valued information than independent financial advisers, television adverts or the Financial Services Authority.

The British BBA’s survey co-incides with the organisation’s response to the Treasury consultation on financial capability. The response said people should be encouraged to make better use of existing sources of financial advice before the government spends time and money trying to develop new systems aimed at helping people with their money.

The banks' response said quality financial education was the key to helping people help themselves and that, ideally, this should start in schools at the earliest opportunity. The banks also highlighted their free in-house information services and multi-million pound contribution to existing advice schemes. The banks also called for an audit of existing services to ensure any new proposals dovetailed with what was already on offer.

Chief Executive Angela Knight CBE said: “People are clearly comfortable asking their friends and family about their finances. There is also a demand for good online advice. But we must ensure people have the tools to make sensible and informed financial decisions throughout their lives. UK banks offer free in-house information and are happy to help customers plan for all their financial needs. The banks also fund many services provided by the voluntary sector as well as contributing to local initiatives.

“We believe the best way to help people make sound decisions about what to do with their money depends on education. This should start young and we support efforts to see financial literary taught in schools.

"We fully support the government's aims of improving financial capability but we feel this could best be achieved by enhancing and tailoring existing services rather than seeking to bring in a new and complex national system which could be difficult to administer and costly to operate."

The BBA carried out its poll as part of the government’s debate into the provision of generic financial advice and the need or education in money matters.