Research commissioned by ING Direct has found that there is no clear demand from millennials for robo-advice, with 80 per cent saying they prefer a face-to-face advice relationship.
In a report titled The truth about Gen X and Gen Y, ING Direct found that contrary to common assumptions, Gen Y prefer face-to-face advice over robo-advice.
ING Direct head of third party distribution Mark Woolnough said, "It's refreshing to see that the more digitally-savvy younger Australians recognise the value of face-to-face financial advice."
"This shows that while there is a place for online solutions, they should complement personal advice relationships and not be at their expense."
Mr Woolnough noted that the net wealth of Gen X and Gen Y sits at approximately $1.4 trillion.
"Coupled with an intergenerational wealth transfer of $2.4 trillion occurring during the next three decades, that's a huge opportunity for advisers," he said.
The report found that a key factor stopping Gen Y from seeking financial advice is the perception of high fees. Only 5 per cent of Gen X and Gen Y have an adviser, the study said.
According to the report, both generations expect to pay a maximum of $250 for comprehensive face-to-face advice.
The majority of Gen Y, however, expect robo-advice to be free.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 21 Jan 2019Federal Court winds up CFSBy Eliot Hastie
- 21 Jan 2019Licence conditions placed on Sydney AFSLBy Adrian Flores
- 21 Jan 2019O’Dwyer steps down from politicsBy Adrian Flores
- 21 Jan 2019The wealth management fintech that soared in 2018By James Mitchell
- 18 Jan 2019Advisers to suffer ‘horrendously’ from FASEABy Sarah Simpkins
- 18 Jan 2019Praemium FUA up 14%, reveals platform upgradeBy Adrian Flores
- view all