Consumers increasingly prefer online access to their financial services, according to a new survey. They also want better value for money.
A KPMG Australia survey of 1500 Australians found that 80 per cent prefer to manage their banking digitally. The trend of recent years to online access to banking, insurance, superannuation and financial planning has accelerated this year.
“Consumer of all ages increasingly see digital as the new normal,” the survey report said.
Respondents said the things that appealed to them about digital access to financial services were convenience, availability and time saving.
KPMG found that social distancing forced many older Australians to use digital tools they had never used before. Many of those consumer now accept that digital services are safe and convenient.
They said they want a range of options for dealing with financial service providers, including email, mobile apps, online portals, SMS, video chat, virtual assistance and live chat.
With household finances under pressure during the pandemic, a majority of consumers want better value for money from financial services providers.
KPMG said: “Consumers have been increasingly shopping around for the best value products and are more likely to switch providers.”
Among financial services providers, insurers face the greatest challenge, with only car, home and contents and, to some extent, private health insurance now seen as essential.
“Many customers now expect a complete rethink on health, travel, life and income insurance due to current financial pressures they face. Many people are now more aware of what their policies do and do not cover,” the report said.
Satisfaction with superannuation funds is relatively low and fund members are looking for better value, better digital engagement and better education services.
When it comes to financial advice, 58 per cent agreed that they had a greater need for advice but only 32 per cent said they were willing to pay for it.