There was strong interest this week in our report on the launch of a new national benchmark tracking consumer attitudes and behaviours – highlighting a significant opportunity for financial advisers in modern day Australia…
A new national benchmark tracking the attitudes and behaviours shaping modern Australia has revealed a growing disconnect between financial engagement and financial confidence and highlights “…a significant opportunity for financial advisers as Australians increasingly turn to AI and digital tools to support financial decisions.”
Developed by TAL, in partnership with research firm McCrindle, the Understanding Modern Australia report is a new longitudinal research platform designed to track how Australians’ think, feel and behave, over time, in an increasingly complex world.
The insurer says the corresponding index measures the gap between what Australians believe and how they behave and along with the report is designed to become an annual benchmark “…helping financial advisers better understand the evolving behaviours, expectations and decision-making drivers shaping their clients.”
The inaugural findings reveal Australians are highly engaged with their finances, but many struggle to translate that engagement into action.
TAL says that while 86% regularly monitor their spending and 80% prioritise budgeting and financial planning only 28% are satisfied with their finances; 62% feel stressed when thinking about money and one in three (32%) do not feel in control of their financial future.
The report also identified the largest gap between aspiration and action in the financial pillar, with an 18-point difference between how strongly Australians value good financial habits and how consistently they put them into practice.
TAL says Australians who hold life insurance “…recorded an eight-point higher index score than those without cover (76 vs 68), reinforcing the role protection can play in supporting financial confidence, resilience and long-term security.”
Founder and Principal at McCrindle, Mark McCrindle, says the research reflects a broader shift in how Australians are making financial decisions.
“Technology has fundamentally changed how Australians access information, make decisions and seek advice. As information becomes more accessible, we’re seeing a generation of consumers who are more self-directed and more willing to do their own research than ever before,” he says.
The research found more than three million Australians already use AI to help manage their financial activity, with one in five trusting AI to recommend a financial product suited to their needs.
“Yet when it comes to making financial decisions, Australians remain significantly more likely to act on advice from a paid financial adviser than guidance from AI, family, online resources or social media.”
TAL Group CEO and Managing Director, Fiona Macgregor, says the findings highlight a broader shift in how Australians are navigating financial decisions, with trust becoming more important.
…While technology is making information easier to access, it’s also reinforcing the importance of trust, human judgement and genuine connection…
“Australians have never had greater access to financial information. The organisations that thrive will be those that understand how this is changing behaviour. While technology is making information easier to access, it’s also reinforcing the importance of trust, human judgement and genuine connection when people are making important decisions.”
She says the report shows “…the rise of the hyper-informed DIY generation is reshaping the advice profession. As a result, advisers are evolving from information providers to trusted partners who help clients navigate complexity, apply judgement and build the confidence to act.”
The research also suggests Australians are increasingly comfortable with advisers embracing AI, provided it is used transparently.
“More than half (57%) of Australians are comfortable with financial advisers using AI tools to help inform advice, while 87% want to know when AI has been used in generating financial advice, reinforcing that trust and transparency will become increasingly important as technology becomes more embedded in advice businesses.”
TAL and McCrindle will explore the inaugural findings in more detail during an upcoming TAL Risk Academy session on September 16.
Click the image below to see the full report.
