No Gen Y demand for robo-advice, study shows

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.

No Gen Y demand for robo-advice, study shows
ifa logo

Subscribe to the ifa bulletin

Receive daily online news,analysis, reports and business strategies
By signing up you agree to our Terms of Use and Privacy Policy

from the web

Website Notifications

Get notifications in real time and stay up to date with content that matters to you.