With Millennials preferring to receive advice digitally, advisers must adapt to this demand or risk falling short, according to Telstra’s global industry executive of banking, finance and insurance.
Speaking at the FSC’s Life Insurance Conference in Sydney, Rocky Scopelliti said advisers need to re-evaluate the way in which they engage with Millennial clients.
“The opportunity for the industry is to really recreate advice and there is a very, very strong appetite for that advice to be structured digitally, whether that is in terms of the way in which the advice platform generates advice or the way in which advice is delivered,” he said.
“If you look at financial advice today, of the nine million people that make up generations X and Y in Australia, only three million of them are paying for professional financial advice.”
He continued: “Now, that is an alarming set of numbers, but it is equally an exciting set of numbers because there means there is a whole market offering of six million people who, today, are not getting advice.
“But here is the thing: you cannot keep throwing the same value proposition at that six million and expecting to get the same response – they have already voted.”
Mr Scopelliti added that advisers should also consider the way digital advice can be used for the delivery of face-to-face advice.
“Video communications is now something that has become mainstream for us [...] and there are a lot of financial planners who are delivering financial advice using video types of communication,” he said.