Forrester says that over the past two decades, digital technologies have empowered consumers in all areas of their lives — “yet the way most people get financial advice hasn’t changed” — even though the financial landscape gets more complex every year, with new legislation, new offerings, new technologies, and new companies to navigate.
Forrester dubs Australian online adults who show little interest in their finances as “financial avoiders” and says they could benefit from “well-designed digital money management tools that deliver what they really need” – personalised financial guidance, help, and advice to make better financial decisions.
“However, money management tools are notably absent from Australian banks’ offerings compared with those of their overseas peers,” Forrester says.
• Avoiders neglect their personal finances. More than two in five Australian online adults are so- called Avoiders: They tend to neglect their finances, don’t do much of their own research, and don’t get in contact with advisers to help them, either Australian banks and insurers need to do a lot of outreach and education to engage with these consumers. Digital tools are the best way to engage with Avoiders, as they show little interest in working with advisers — only 10% are willing to pay for advice.
• Australian consumers predominantly use PCs for financial research and buying. Most consumers favour the PC when researching and purchasing/applying for financial products. Only Validators, the group that combines personal research with advice from professionals, lead the way in the use of smartphones for researching and purchasing financial products, particularly the latter. Nearly one in five Australian Validators has researched and purchased financial products on a smartphone in the past three months. They are also the group that agrees most with the statement “I trust financial services companies to treat me fairly and honestly.”
Forrester’s global survey included 9800 respondents in Australia and consumers in China, India, Japan and South Korea, between the ages of 18 and 84.