Few Australian investors expressed a high level of trust for the financial services industry. About half of eligible investors believe the state-sponsored pension scheme will pay out benefits as promised. In addition, significantly more investors are worried about an impending financial crisis within the next three years than in 2018.
Although there is a lack of confidence and trust in the system, the majority of Australian investors still believe they have a fair opportunity to profit by investing in the capital markets.
Investors continue to value access to people over technology to manage investments and overwhelmingly trust human advice over that of robo-advisers with very few saying they were willing to invest in a fund that used artificial intelligence for its selection process. This indicates a distrust of or lack of knowledge about technological investment solutions.
When looking to hire a firm, Australian investors prefer people they can count on as opposed to a trusted brand. When changing investment professional or firm, investors’ top considerations are the level of performance, fees, and communication. Advisers would do well to provide more personalized products as a vast majority of investors want them and almost half would be willing to pay more for them.