Over 80% of university educated, well paid Generation Y professionals do not feel the need of financial advice, according to a report by KPMG.
The report, which included responses from over 1,400 Australian KPMG employees aged between 18 to 30 years, was authored by KPMG head of financial services management consulting Daniel Knoll and KPMG associate director Kristina Craig.
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Highlighting the report’s findings Craig stated, "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."
Knoll said that the respondents surveyed represent 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 percent in 2010, will jump to 70 percent in 2030. For Gen Yers, it’s only the beginning of what will be a 40-50 year experience as workers, consumers, savers, borrowers and investors," Knoll said.
The study also revealed some unexpected findings, with 70% of the respondents citing that they do not foresee themselves using social media channels for banking in the future.
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By GlobalDataAnother striking finding of the survey was majority of respondents concerned about too much security. This represented a marked change from the group’s 2012 report where data privacy and fraud were marked as the primary concerns.
The survey respondents when queried also said that their banking needs were not well catered to by the banking community, and nearly 50% of the respondents said that their stay with their banks depended on low account fees and free ATM withdrawals.
