Millennials ignored in financial products

Majority of Generation Y or millennials felt there were no financial products or services specifically catered to them, a survey showed.

Zaptitude's "Investing in Millennials 2016 Research Report" showed that while 70 per cent of this cohort felt no financial product was tailored to their needs, they had many suggestions on products they required.

Millennials said they wanted programs aimed at high school and university students which taught them about creating a budget and understanding taxes, as well as a package of products that included guides on loans, renting, living expenses and managing travel expenses.

In terms of execution, suggestions included a "your first loan" product, where banks guided customers on how loans worked and assisted them in attaining one, and a maternity fund, where, like a superannuation fund, a portion of one's salary could go into a fund for clients to access during maternity leave.

Caboodle Financial Services managing director and Zaptitude co-founder, Peita Diamantidis, said banking and financial advice products were catered to the older generation's perception of success like marriage, property, children, and retirement.

"When I discussed the industry with them and how they perceived it, the universal impression of the financial services industry was one of condescension and irrelevance," she said.

"What a disaster. Have we as an industry managed to alienate the next generation of explorers, designers, creators, and innovators?"

The survey also found that while the financial services industry was creating digital solutions for this age group, two-thirds of over 400 respondents said they preferred face-to-face interactions for learning new things.

Therefore it was vital industry players who developed digital tools to collaborate with financial coaches and advisers to provide the education to better understand the tool, the report said.

Almost half (45 per cent) preferred longer term face-to-face courses, while 21 per cent wanted live seminars and workshops. Meanwhile, 22 per cent preferred online at-your-own-pace courses, and seven per cent preferred online live courses.