Survey finds consumers prefer the internet over an adviser in the flesh
/A NobleOak survey has found that nearly half of consumer respondents turn to the internet over financial advisers for advice on their finances. The survey, conducted on over 1,000 Australians, found that personalised advice was going by the wayside over the internet, with 46 per cent seeking information online.
Consumers in the survey were less likely to request expert advice from a financial adviser, with 44 per cent looking to family and friends, with 34 per cent seeking advice from a professional.
NobleOak said that the Royal Commission exposed conflict in how advisers are paid, which has likely contributed to these numbers, along with the digital revolution. Changes to the regulatory framework mean consumers are likely to do their own research and deal directly with financial product providers, rather than go through an intermediary.
Key findings of the survey include:
Eighteen per cent of those surveyed were confident that issues identified in the Royal Commission would be fixed, with 30 per cent (majority) not confident at all
Younger generations had a more positive outlook - a quarter of 30-34-year-olds felt confident, with 13 per cent of 55-60-year-olds confident
About 13 per cent of respondents were currently under the care of a financial adviser for life insurance or income protection products
Forty-seven per cent said they wouldn’t pay for a financial adviser, while 29 per cent said they would not pay more than $100
Thirty-four per cent used the internet to seek out advice, while advisers had been (in the past or present) used by 24 per cent
Seventy-two per cent of those surveyed were confident in the information available online to make a decision on their own
Just less than half of those surveyed said they had life insurance, down from 56 per cent in 2018
Almost half said the high cost of life insurance was the main reason they didn’t have any, with women a little more price-conscious than men
Those in New South Wales are the most price-conscious, while the least price-conscious were Tasmania and the ACT
Thirteen per cent of those surveyed did not see the value of life insurance
Baby Boomers have the least life insurance at 36 per cent
Those in the age range 30-34 had the most insurance, with 56 having bought a product
Out of those respondents with cover, a third are planning to renew their policy in 2020
