Unbiased  

Unbiased's new subscription model 'reflects changing industry'

Unbiased's new subscription model 'reflects changing industry'
Karen Barrett founded Unbiased in 2010. (Carmen Reichman)

Unbiased's move to a subscription-based model is a reflection of how the industry has changed, according to the businesses' boss Karen Barrett.

From January, the service will move to a subscription-based model where advisers will buy credits which will give them access to leads each month.  

Unbiased connects clients to financial advisers, mortgage advisers and accountants. 

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An example of the new model would be an adviser who sets their wealth level at £50,000 as a minimum and has three to 20 locations, costing between £594 and £3,960 in monthly subscriptions.

It follows changes to prices in September, which some advisers claimed favoured larger firms. 

Barrett said: “Now we are saying you need to subscribe for five locations to see results and it takes three months to convert a client.

“You need at least four enquiries a month coming in to make it worth it - that is really why the move came with these packages. We actually are setting advisers up for success. 

“A lot of our customers have been with us for a decade or more and are on packages that suit them, a lot of the packages we are now offering are based on their feedback. 

“If advisers come up to me at events and say it is not working well, I say you need more locations.”

In 2023, Unbiased said it brought in £15bn worth of assets under management into the industry, 75 per cent of which was from investors who had never used a financial adviser before.

And Barrett said the change in pricing reflects a changing industry with more consolidation.

“There is a shift from the one-man band on the high street, to much more scaled up businesses with different areas of expertise,” she said. 

“Unbiased has a common goal with advisers and some of the people who are negative about our business haven’t been customers for five years. 

“[These changes] are the way forward that will support growth and will set advisers up for success."

Asked whether she worries about losing customers through the fee changes, Barratt said: “I think it is the right thing to do, the market is moving in a certain way and we are reflecting that. 

“We have seen some movement in the business and we are seeing some success with larger and medium firms in the base.”

As well as the subscription-based model, Unbiased said it will now offer a wider range of plans for firms trying to grow their customer base, with three levels offered. 

It will also introduce text message verification where customers will be asked to confirm their mobile number. 

Advisers will also receive smartphone notifications about new enquiries, which they can accept directly.

Barrett added: “The advice gap is massive and what advisers are great at is giving advice. 

“The satisfaction level of people seeking financial advice is high and we get [customers] to that point.