Financial Planning

Family and friends remain trusted advisers

Around 6 million domestic consumers seek advice about money and investments from family and friends rather than professional financial planners, while 3.5 million Australians are asked for financial advice, according to Roy Morgan.

Roy Morgan’s Single Source survey revealed Citibank has the highest proportion of customers that are asked by family or friends for their financial advice, with 34.5 per cent approached for advice. ME Bank was close behind at 32.2 per cent.

The highest proportion of the big four banks’ customers who are asked for advice come from ANZ at 21.2 per cent, followed by National Australia Bank at 20.4 per cent, Westpac at 19.5 per cent and Commonwealth Bank of Australia at 17.9 per cent.

Roy Morgan industry communications director Norman Morris said banks that deal with customers who are advisers for their family and friends have the potential to also gain their family and friends as customers, provided the trusted adviser customers have high satisfaction with the banks.

“It is therefore worth banks understanding and tracking that important group of their customers, the ‘trusted advisers’,” Morris said.

Financial institution customers in the top 10 per cent, based on the total value of their banking and finance products, have the highest incidence of ‘trusted advisers’, with 35.9 per cent sitting in this category.

Other trusted adviser groups include people with personal yearly incomes of $120,000 or more, with 32.3 per cent in this category, professionals/managers/small business owners at 29.6 per cent and those with a degree at 23.4 per cent.

Trusted advisers appear to have greater involvement and experience in finance and hence are more likely to be trusted in their opinion, Roy Morgan said.

The survey results are based on interviews conducted in the 12 months to September 2018.

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