{"id":89,"date":"2016-04-20T15:37:31","date_gmt":"2016-04-20T05:37:31","guid":{"rendered":"https:\/\/newsroom.ing.com.au\/?p=89"},"modified":"2016-08-30T14:06:18","modified_gmt":"2016-08-30T04:06:18","slug":"gen-x-and-y-reject-robo-advice-for-face-to-face","status":"publish","type":"post","link":"https:\/\/newsroom.ing.com.au\/gen-x-and-y-reject-robo-advice-for-face-to-face\/","title":{"rendered":"Gen X and Y reject robo-advice for face-to-face"},"content":{"rendered":"<p>A new report by ING DIRECT, &#8216;The truth about Gen X and Gen Y&#8217;, quashes the assumption that younger generations are more likely to embrace robo-advice, with almost 80 per cent wanting a face-to-face advice relationship.<\/p>\n<p>Mark Woolnough, Head of Third Party Distribution at ING DIRECT, commented: &#8220;Relationships have always been the cornerstone of successful and sustainable advice partnerships and it&#8217;s refreshing to see that the more digitally-savvy younger Australians recognise the value of face-to-face financial advice.<\/p>\n<p>&#8220;This shows that while there is a place for online solutions, they should complement personal advice relationships and not be at their expense.&#8221;<\/p>\n<p><strong>A strong appetite for advice among young Australians<\/strong><br \/> While less than five per cent of Gen X and Gen Y currently have a financial adviser, the report found that they recognise the value and importance of advice with more than half intending to seek advice in the future.<\/p>\n<p>Those whose parents use an adviser most strongly recognise the value of advice, with 68.7 per cent stating that advice delivers benefits.<\/p>\n<p>Mr Woolnough commented: &#8220;The net wealth of Gen X and Gen Y is approximately $1.4 trillion(1), and coupled with an intergenerational wealth transfer of $2.4 trillion(2) occurring during the next three decades, that&#8217;s a huge opportunity for advisers.<\/p>\n<p>&#8220;The recognition of the value of advice, particularly among those whose parents are advised, means that there is a rich pipeline of new clients among the existing retiree and pre-retiree client base of most advisers.&#8221;<\/p>\n<p><strong>Fees holding young Australians back<\/strong><br \/> The key factor holding Gen X and Gen Y back from seeking advice is the perception of high fees. Both generations expect to pay a maximum of $250 for comprehensive face-to-face advice, demonstrating a clear imbalance between the cost of advice and what young Australians think is appropriate to pay.<\/p>\n<p>While this may be an unrealistic expectation, it bodes better than for robo-advice, which the majority believe should be free.<\/p>\n<p>Mr Woolnough commented: &#8220;While $250 may be far off the mark in terms of the true cost of personal advice, this presents an opportunity for advisers to educate and take these younger Australians on a journey, demonstrating the real value that advice can add.&#8221;<\/p>\n<p>-ENDS-<\/p>\n<p>(1) ING DIRECT analysis based on McCrindle demographics data and ABS Household Income &amp; Wealth data<br \/> (2) ING DIRECT Women &amp; Finance Report 2015<\/p>\n<h4>Media contact<\/h4>\n<p>David Breen<br \/> Head of Corporate Affairs, ING DIRECT<br \/> T: +61 2 9028 4347<br \/> M: +61 412 933 060<br \/> E: <a href=\"mailto:david.breen@ingdirect.com.au\">david.breen@ingdirect.com.au<\/a><\/p>\n<h4>About the report<\/h4>\n<p>&#8216;The Truth about Gen X and Gen Y&#8217; is based on research commissioned by ING DIRECT and conducted by Rice Warner in January 2016. The research was carried out between 7-12 January via an online qualitative and quantitative survey of more than 1,000 respondents between the ages of 22 and 52.<\/p>\n<h4>About ING DIRECT<\/h4>\n<p>ING DIRECT changed the way Australians bank 16 years ago by launching the country&#8217;s first high interest, fee free online savings account. Since then, we&#8217;ve brought this low fee value to home loans, transactional banking and superannuation.<br \/> With over 1.5 million customers &ndash; and $34 billion in savings and $40 billion in mortgages &ndash; ING DIRECT has the highest Net Promoter Score of any bank.<br \/> Australia&#8217;s most recommended bank according to Nielsen Consumer Media View.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A new report by ING DIRECT, &#8216;The truth about Gen X and Gen Y&#8217;, quashes the assumption that younger generations are more likely to embrace robo-advice, with almost 80 per cent wanting a face-to-face advice relationship. Mark Woolnough, Head of Third Party Distribution at ING DIRECT, commented: &#8220;Relationships have always been the cornerstone of successful [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-89","post","type-post","status-publish","format-standard","hentry","category-everyday-banking"],"acf":[],"_links":{"self":[{"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/posts\/89","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/comments?post=89"}],"version-history":[{"count":2,"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/posts\/89\/revisions"}],"predecessor-version":[{"id":94,"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/posts\/89\/revisions\/94"}],"wp:attachment":[{"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/media?parent=89"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/categories?post=89"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsroom.ing.com.au\/wp-json\/wp\/v2\/tags?post=89"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}