We don't need financial advice: Gen Y
Thursday, 9 April 2015 11:55am

More than 80% of university educated, well paid Generation Y professionals don't think they need financial advice according to a recent study by KPMG.

The study, which sought the views of more than 1,400 Australian KPMG employees between 18 and 30-years-old, also found Gen Y's banking needs are not being well met.

KPMG head of financial services management consulting and co-author of the report, Daniel Knoll, said the men and women surveyed "are a strong representation of a group that will dominate the financial services profit pools in the future."

"Generations X and Y will dominate the financial space of the next few decades. Their share of financial assets, which sat at just 36% in 2010, will jump to 70% in 2030. For Gen Y-ers, it's only the beginning of what will be a 40 to 50 year experience as workers, consumers, savers, borrowers and investors," Knoll said.

The report 'Banking on the future - The expectations of the Gen Y professional', discovered about 50% of respondents stayed with their banks on the basis of low account fees and free ATM withdrawals.

Co-author, fellow Gen Y representative and KPMG associate director, Kristina Craig, said some interesting and unexpected findings were uncovered.

"Seventy per cent said they don't foresee themselves using social media channels to bank in the future. The majority said they were concerned about too much security, which was a marked change from our 2012 report where data privacy and fraud were primary concerns," Craig said.

"While 95% said they don't currently have a financial planner, and 84% think they don't need financial advice - 65% would value some kind of financial coaching. And while they use online and mobile banking as their primary channels, when Gen Y are forced into traditional channels such as bank branches for home loans, their expectations are largely unmet. In this fintech age there are now many innovative options for banks to address these issues and reap the rewards from this growing customer segment."

The report indicates Gen Y professionals, who will become a significant customer group for retail banking by 2030, are likely to change the way banks approach their business tools and engagement.

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