How do you know that you've chosen a good investment provider?
16 Feb, 2016
What kind of customer service should you be getting in 2022?
Whether you’re starting out in investing, or consider yourself a share-trading pro, this is an important question. Based on our own research, we know that many of you have had mixed experiences.
Truth be told, we’ve known for a while that customer service in the investment sector – and the financial industry in general – often leaves much to be desired.
The good news is that there have been some improvements in recent years.
Some providers have tried to shake up the industry with edgy new products and apps; others have tried to become a bit more ‘customer-centric’, which basically means putting your experience at the heart of their decision-making.
Now, you’ve probably heard it all before. Similar marketing phrases like ‘customer-focused’, ‘tailored to you’ and ‘catered to your needs’ may ring a bell. These are the words you want to hear. But all too often, there’s a mismatch between those promises and your experiences.
When push comes to shove, once you’ve signed up with a provider, how do you know that you’re getting what you need?
And how can you be sure that you won’t be better off elsewhere?
Well, earlier this month, we revealed the winners of our Best Buy awards for 2022, which honour those investment providers who have stood out from the crowd and made great strides to put you – the customer first. And, no, we don’t mean zombies uttering ‘your call is important to us’ every 30 seconds.
In one of our awards categories – Best for Customer Service – we looked at your experiences in even greater detail.
What did we do?
Examined your feedback and reviews in relation to customer service
Phoned your providers to find out how responsive they were.
Tested their chat functions to see if these were fit for purpose
Looked at the accessibility and availability of customer support through multiple channels
Penalised lengthy hold times and unhelpful answers, obviously.
(Our awards criteria also include our own rigorous Boring Money testing which you can find out more about here)
What are some of the most common problems you’ve experienced with investment providers?
We know that:
Products and industry terms often aren’t explained to you in plain English
It can be difficult to open, transfer or close an account
Customer support is often limited or ineffective
Charges are not always clear
So, how do you know that you're with a good investment provider?
Here are some benchmarks!
1. Opening your account is easy
You visit the website or download the app. You like what you see. You’ve crunched the numbers. And, before you know it, your account is up and running. Wow! That was quick.
That’s what every customer experience should be in 2022.
2. Closing it might be even easier
Even if you’ve had a good experience, perhaps this investment provider just wasn’t the right match for you after all. Don’t worry – it happens.
Now, they’ll want you to stay, of course, but closing your account and leaving shouldn’t be an uphill battle. A good investment provider shouldn’t make it impossibly difficult and complicated. Your decision is final, so there's no point in making things awkward.
3. You understand the upfront charges and ongoing fees
The pricing structure is a doddle. There's no ambiguity. What you see is what you get. Financial planning is hard enough as it is, so surely this is the least they could do, right?
Your provider knows you weren’t born yesterday, so they won’t waste their time by hitting you with devious hidden charges. Now they've earned your trust, which is important, because many people who want to start investing don't make that first step because they don't know who to trust.
4. Managing your investments is simple
Changing your investments is like changing your wardrobe. You might even find it enjoyable from time to time.
Want to move things around? Put some more money in? Switch to some spicier high-growth funds or retreat to those tried-and-tested bonds? Your provider has made this easy and stress-fee for you.
5. Any problems get fixed responsively
Mistakes do happen – and while they’re obviously never desirable, it’s how providers respond to them that matters. If you've been with the same provider for a while, here are some questions to ask yourself:
How did they respond to a simple problem, like an issue with the website or difficulties making a withdrawal?
How quickly did it get resolved?
If the problem was a little more complicated, did they keep you in the communication loop and help put your mind at ease?
6. You might enjoy investing (or at least find it bearable)
You might find investing quite fun, or at least mildly amusing. At worst, it probably doesn't feel like that much work.
You may be checking your account a lot – perhaps even too much.
And if your provider has a great little mobile app, you might be getting a little ‘side-tracked’ at work, so to speak.
The best apps can be very addictive, so be careful!
7. You feel optimistic about your future
Inflation may be rocketing (well, okay, not quite Argentinian style), but as far as you’re concerned, the sky’s the limit. You provider has made you want to invest. You feel empowered to put more money away and achieve your financial goals.
8. The website is a library and a playground all in one place
You know exactly where to get the information you need when you need it. There’s no scrolling back and forth or having to resort to Google to find another section on the website or an answer to a question elsewhere. Your provider cares just as much about giving you a great experience as they do about helping you reach your goals.
The best investment providers – especially newer platforms - should give you access to at least one or two calculators that you can play around with, too. It's nice to get a a snapshot of what your money might like look like a few years or decades down the road, no matter how uncertain the future might me.
9. Your provider has shown you empathy
We know it’s hard for a lot of people to save right now, let alone invest.
So, what has your provider been doing for you lately? Have they been guiding you through the great squeeze that is 2022? Or just keeping all their fancy insights and expertise to themselves.
10. You’re kept informed about things that actually matter to you
They’ll know that inflation is rearing its ugly head.
So, have they been giving you any tips or ideas on how to save a bit more money?
Did you receive a mailer with some handy resources on how to reduce your energy usage, for instance?
They’ll know the tax deadline was extended this year.
So, if you’re self-employed, did your provider tell you this?
Or did you even know this extension existed?
They’ll know about the recent market volatility. Maybe you were a bit spooked and wanted some reassurance when shares took a tumble in January.
A good provider would have sent you an investor update with some facts and reassurances about what they’re doing to mitigate these risks.
Written in nice plain English, of course. And without the fearmongering.
When markets are turbulent and there's no one reaching out to reassure you, it can feel a bit scary. Small things like the above can make your investment journey that little bit smoother.
11. You know what you’re doing
Hallelujah! Your provider has explained everything to you in terms that at least 99% of the population can finally understand. That shouldn’t be rocket science for them. And investing shouldn’t be rocket science for you either.
You’re delighted that you can now define what JISAs and LISAs are. Perhaps you can even decipher how an SIPP works. And, maybe, just one day, you’ll be elevated to understanding how an ESG fund works.
12. And you know where you're going
Monitoring your investments’ performance is a breeze. It’s easy to see how far you’ve come - and how much further you need to go - to reach your financial goals.
Your ISAs, pensions or funds might look very different to when you started. Hopefully, they’re moving in the right direction! (at least in the long run!)
13. You can learn more about investing
Your provider has made it easier for you to find resources for topics that interest you, like crypto or sustainable investing. Perhaps you enjoy learning about them in your spare time -, maybe even during a quiet day at work! And soon, you'll be able to apply all that wonderful newfound knowledge to invest more confidently.
Perhaps you feel ready to switch from a cash ISA to a stocks and shares ISA? Or maybe you're ready to put more money to good causes by move your old workplace pensions into a sustainable pension pot?
14. You're happy with the investments you've chosen
If you have a ready-made portfolio, you should feel comfortable enough to take a step back and let the pros take care of your investments. But if you've decided to 'pick n' mix' your shares, you should have some decent functionality and plenty of choice (and the share-dealing charges shouldn't eat into your returns too much).
15. The products are the right fit for you
They should meet your needs. For example, if you’re starting a family, can you open a JISA with this provider? If you’re under 40 and planning on buying your first home in a few years, can you open a LISA? It’s important to choose a provider that offers the right products for your long-term financial goals.
16. You feel like you’re getting value
Whatever the size of your investment, the charges shouldn't be eating too much into your returns. A fixed % fee may be better for smaller amounts, whereas a fixed amount may be better for larger investments.
But it's not just about charges, of course. Value is also about getting the support and resources you need to make an informed decision when you put your money away. No one should have to invest in the dark.
17. You know what risk actually means
Every investment involves risk. But your provider has explained what this actually means for you. Rather than just uttering ‘inflation is high, your cash is losing value every day, switch to stocks and shares!’, they know that starting out in investing can be scary for a lot of people.
They’ve helped put everything into perspective. Now, you understand the risks of investing and the risk of not investing, in the context of your financial circumstances and goals. Hopefully, it doesn’t feel as scary as it once did.
18. And you’re comfortable with the risk level you’ve chosen
You feel like you've struck the right balance between risk and reward. Maybe you’ve decided to reduce the heat and go for a low-risk stocks and shares ISA. Or perhaps you’re comfortable enough to take a punt on something a lot riskier, like crypto.
19. You’d recommend this provider to your friends and family
You’re picky enough about which Netflix series to suggest to your loved ones, let alone investment providers. But you have a good feeling about this one, so you're confident enough to recommend them to your parents, children, aunts, uncles, grandparents, cousins, friends, colleagues, etc!
20. And many other people would recommend this provider too (including us)
Our best ISA and pension providers often have average customer ratings above 4 out of 5. Many of them have won a Best Buy award, and some of them have won multiple Best Buys!
At Boring Money, we wouldn't recommend any product or provider that we wouldn't recommend to our own family and friends.
Click on the logos below to discover the winners of our Best Buy ISAs, pensions, JISAs and LISAs!
Or compare all ISAs, JISAs, LISAs or pensions.
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