Why Professional Financial Advice is Even More Important in the Digital Age

Digital tools are reshaping how Europeans access financial markets, however, the need for transparency, education and qualified advice has never been greater.

For millions of Europeans, the idea of financial freedom has shifted from a distant aspiration to an urgent need. Against the backdrop of inflationary pressures, pension uncertainty, and rapid digital transformation, individuals are increasingly expected to take charge of their financial futures. Yet navigating this complex environment is anything but straightforward.

A new educational video from EFPA and BETTER FINANCE, Invest Today, Secure Tomorrow, addresses a fundamental question: whom can citizens trust to guide them through investment decisions that may shape the rest of their lives?

A Continent of Savers, But Not Always Investors

Despite high levels of saving across much of the EU, the financial well-being of European households remains under strain. According to the joint EFPA and BETTER FINANCE report on the Financial Health of Europeans, many citizens lack long-term planning strategies, emergency reserves, or structured investment habits. Roughly one-third of European adults have not set any long-term financial goals. Even among those who do formulate long-term goals, only 15% follow through.

Worryingly, the vast majority of Europeans do not participate in capital markets, with 51% keeping their money in savings accounts and only 22% investing in mutual funds, shares or ETFs.

At the same time, BETTER FINANCE’s annual report on pensions has highlighted, year after year, that European pensions are locked into underperforming products that, when adjusted for inflation and costs, often yield negative real returns. This exacerbates the problem, posing a serious concern: will today’s savers be able to retire securely tomorrow?

Democratised Access, Complicated Risks

While traditional pensions are underperforming, digital innovation has apparently stepped in to offer new pathways for Europeans to pursue financial security in retirement. In theory, it has opened the door to retail investing for EU citizens as individual investors like never before. The rise of neobrokers and mobile trading platforms has made it remarkably easy—perhaps too easy—for younger generations to access markets with just a few swipes, often through fractional shares and ETFs.

However, with opportunity comes complexity. As noted in the Neobrokers report, the app designs of these digital platforms encourage impulsive trading behaviour while also delivering unclear ownership structures. While access has improved, investor protection frameworks have not always kept pace.

At the same time, the saturated online investing market has escalated investment scams. In 2023 alone, there were 1.3 million search impressions for fake investment platforms targeting EU citizens. These scams, often highly professional in appearance, exploit a regulatory vacuum in digital marketing and reach users through ads, influencers, and direct messaging. For retail investors, the line between legitimate and deceptive advice has become increasingly difficult to discern.

Why Professional Advice Still Matters

For Europeans to navigate this complex ecosystem, qualified financial advisers remain a vital ally. According to EFPA’s Financial Advisor Survey on the Retail Investor Journey,  retail investors lack confidence and knowledge when choosing financial products. However, certified advisers (who must follow a strict code of conduct obliging them to act in your best interests) can make a measurable difference.

The joint EFPA and BETTER FINANCE educational video explains what to look for — and what to avoid — when choosing an adviser, as well as how to prepare for your financial consultations.

Empowering Citizens with Education

Invest Today, Secure Tomorrow is part of a broader campaign to empower European citizens through financial education. It serves as a practical introduction to long-term planning, the value of starting early, and the importance of seeking professional guidance in an increasingly noisy marketplace.

EFPA’s Call for Professional Standards in Financial Advice

EFPA strongly recommends that citizens seek guidance only from professionally qualified financial advisers. To ensure consistency and credibility across Europe, EFPA advocates for a pan-European certification label that aligns diverse national standards under a unified framework. A professional qualification, according to EFPA, must be awarded by a competent body upon rigorous assessment, confirming that the adviser has achieved predefined learning outcomes and possesses the necessary competence for the role. It should be benchmarked against standardized criteria covering knowledge, skills, and ethical conduct; reflect a defined level of complexity such as those in the European Qualifications Framework (EQF); include clear validation rules; and require ongoing professional development. This harmonized approach aims to foster trust, protect investors, and support a more integrated European financial market. For more information on financial advisor qualifications standards: EFPA Recommendations regarding the SIU, EFPA Feedback on the RIS.

Watch the full video now

Source: European Financial Planning Association, 8th December 2025.