Improving people’s understanding of financial services will enhance advisers’ reputations, new research commissioned by Zurich Financial Services has found.

Many advisers consider it their job to drive improved financial literacy, the study shows.

The survey of 227 advisers examines attitudes to consumer financial literacy, the role of education in the advice process and methods used to improve financial knowledge.

About 93% of advisers agree financially literate customers are “more likely to understand, value and accept” advice.

Only about 6% believe such clients are more likely to self-serve.

The survey, conducted by Lewers Research, found 87% agree improved literacy will directly and positively affect the profession’s reputation.

About 50% take responsibility for educating consumers, while 46% think the role should be shared between them and life insurers.

Only about 1% think the Government should be primarily responsible.

“High levels of financial literacy can actually help reinforce clients’ appreciation of the value of advice,” Zurich Head of Distribution for Life and Investments Kristine Brooks said.

“It encourages deeper relationships and increases loyalty, with advocacy for their own adviser and for the advice profession generally.”

The research also offers pointers to improving client education.

The findings show only about 35% of advisers use multimedia educational resources such as online tools, apps and videos.

“Tapping into the power of video and other interactive educational resources can create a more engaging and contemporary client experience,” Ms Brooks said. “It is also more likely to improve the effectiveness of adviser efforts to impart their knowledge and wisdom.”