Existing financial products are not well suited to the needs and goals of professionals born between the early 1980s and the late 1990s, new research from KPMG has found.
The consultancy firm’s Banking on the Future report on the financial habits of members of Generation Y found that products that were relevant to the cohort’s goals were “not particularly well formed” among most established financial institutions.
KPMG found that savings accounts remained the “primary investment tool” for professionals within this age bracket, driven by a “desire for liquidity” among Gen Y professionals.
Additionally, Gen Y professionals were found to have a preference for short-term investments over long-term ones.
“27 per cent of Gen Y professionals own shares, and the attraction of this type of investment is liquidity and the ability to turn these investments into back up funds for things like travel,” KPMG said.
“In comparison, only 12 per cent invest in other wealth products (managed funds, derivatives, ETFs, etc).”
While Gen Y professionals aren’t investing in existing wealth products, the findings indicated that these individuals would be willing to invest if the products were better tailored to their needs and investment style.
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