Consumers bypassing advisers for the internet
Around half of Australian adults are more likely to use the internet rather than visit a financial adviser or broker when researching or changing a financial product.
An online TAL survey undertaken by Galaxy Research found that of the 1260 respondents aged between 18-69 years old, 56 per cent - equivalent to around eight million Australians - had reviewed at least one financial product in the past year, with many making a switch as a result.
In terms of the six commonly reviewed financial products on the internet, 35 per cent of respondents had either switched or considered switching banks or savings accounts, followed by 17 per cent for superannuation providers and 12 per cent for life insurance or income protection.
The other products in the survey sample were vehicle and/or home insurance, credit cards and home loans.
In terms of sources of information for financial products, TAL found that consumers were more likely to use the internet when researching or changing life insurance or income protection (52 per cent), super (47 per cent) or mortgage providers (54 per cent) rather than speaking with an adviser or broker. These figures dropped to 23 per cent, 15 per cent and 29 per cent respectively in relation to advisers.
“The internet has empowered Australians and put them in the driving seat when it comes to their own finances,” TAL group chief executive Jim Minto said.
“We would encourage consumers not to rely solely on the internet when making important financial decisions because while they are certainly a great tool to start with, it is always a good idea to seek appropriate advice from a qualified financial adviser or planner.”
In other findings, higher income households ($90,000+ per annum) were more likely to have researched options or changed providers (66 per cent) than people in low income households (less than $40,000 pa) at 45 per cent.
Men were also more likely than women to have used the internet or internet comparison sites to research financial products (across all six products).
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